Dallas Tankless Water Heaters Save You Money

Tankless water heaters cost much more to install than a regular water heater, but do they actually save money? 

According to our math and research tankless water heaters can save Dallas homeowners nearly $500 a year?

Our local plumbing experts researched maintenance and energy efficiency savings of tankless water heaters in Dallas homes. We also spoke to Paxten Volbrecht, director of operations at Jacobs Insurance Solutions in Grapevine, TX, about insurance discounts and benefits homeowners can receive from switching to tankless heaters.

Mother Modern Plumbing installs tankless water heaters throughout the DFW Metroplex — talk to us about how they can save you money.

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5 Ways Tankless Water Heaters Save DFW Residents Money

Most DFW homeowners utilize electric or natural gas water heaters — it’s about a 60/40 split between electric and gas. Regardless of which fuel source you have, tankless units offer better long-term savings than traditional tanks.

These savings go beyond the ones you’d expect, like maintenance and energy efficiency. Smart local residents are taking advantage of Energy Star tax credits, as well as new insurance discounts being offered to tankless users.

Here are the 5 ways Dallas tankless water heaters are saving people money:

1. $600 Energy Star installation credit
2. New Texas insurance discounts and incentives
3. Reduced hot water usage and storage
4. Reduced water re-heating costs
5. Longer overall lifespan vs. water heater tanks

Energy Star Offers $600 Tankless Installation Credit

Natural gas tankless water heaters installed between 2023 and 2032 are eligible for a tax credit through EnergyStar.

This Energy Efficient Home Improvement Tax Credit covers 30% of the total installation cost up to $600. ENERGY STAR rated tankless water heater models with ≥ 0.95 UEF are eligible.

That’s a direct, instant payback of between 25-40% on most tankless water heater installations.

Is your tankless water heater eligible? Check the official Energy Star approved product list to see if you can claim this home improvement tax credit.

Surprising New Insurance Discounts for Tankless Heaters

It’s no secret that many insurance companies are leaving Texas due to high claims and rising litigation. The ones who are staying are offering insurance discounts to homeowners who make an effort to lower their risk of home damage.

Those efforts now include installing a tankless water heater in the garage.

“Carriers are looking for a tankless water heater, specifically in the garage on the first floor,” says Paxten Volbrecht, Director of Agency Operations for Jacobs Insurance Solutions in Grapevine, Texas. 

“They don’t want a tank,” Paxten continued. “If a tank is going to burst, that is a lot of water coming out at one period of tank versus a tankless. Preferred customers are going to be ones that have… tankless heaters.”

While discount rates vary by provider, our research team was able to confirm multiple insurance providers who offer tankless water heater discounts to Dallas residents.

Continuous Hot Water Means Lower Water Bills

Less water used + less water wasted = less money spent.

Tankless heaters don’t store water. Instead, they heat water on demand and only when needed. The U.S. Department of Energy reports that tankless water heaters are up to 34% more efficient than tank water heaters. 

What does that mean in dollars and cents for the average Dallas household? You’ll spend between $140-$200 less per year on your water bills.

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Less Re-Heating Equals Lower Utility Bills

Think about how much wasted energy goes into your storage water heater. Every time you want a hot shower or run your dishwasher, the entire tank must be re-heated. When you’re done, all that hot water just cools right back down.

That wasted energy is an absolute killer when it comes to your home’s utility bills.

Energy Ogre calculates that homes with tank water heaters spend $44-$108 more on annual utility bills than homes with tankless units.

Tankless Water Heaters Last 5-8 Years Longer Than Tanks

Wouldn’t it be nice to replace your water heater less often? Choose a tankless system, and that’s precisely what will happen.

Tankless water heaters last 20+ years with proper routine maintenance. That’s 5-8 years longer than the average tank unit. 

Living in your Dallas forever home? That means you’ll buy at least one less water heater in your lifetime if you go tankless. (We think it’s much nicer to hang onto that $2,000-$4,000.)

Adding Up Dallas Tankless Water Heater Savings

Let’s do some quick math on potential annual savings of installing a tankless water heater in Dallas. (It’ll be painless, we promise.)

• Energy Star tax credit: 30% up to $600
• Insurance discounts: lowered monthly premiums, vary by provider
• Annual water bills: $80-$200 savings
• Annual utility bills: $44-$108 savings

Let’s be fair and split the tax credit across the first 5 years of ownership. When we do that, owning a tankless water heater offers average annual savings of between $249-$433 over a tank water heater.

And that doesn’t include discounted insurance premiums or longer product lifespan.

Call Mother About Tankless Water Heater Installation

Mother Modern Plumbing’s master plumbers offer decades of combined experience installing tankless water heater systems in Dallas-Fort Worth homes.

We’ll happily guide you through all the available tax credits and insurance premium discounts your new tankless heater is eligible for. 

We live and work here too — Dallas is expensive enough. Let’s save you some energy and some money with a switch to tankless water heating. 

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