Water Heater: Is Tankless or Storage Better?


Not Sure If You Need a Tankless or Storage Water Heater?

Hot water is a luxury none of us like to live without. Whether taking a hot shower first thing in the morning or cleaning your dirty clothes, hot water is essential to your day. Since it relies on your hot water heater, you’re probably wondering which water heater is best for you. 

One of the first decisions is whether you want a tankless water heater, also known as a continuous flow hot water system, or a storage tank water heater. While it may seem insignificant now, this decision will influence your future energy bills, how long your hot water system lasts, how often you’ll require hot water maintenance, and how simple or complex repairs will be. Each of these hot water systems has its pros and cons; what’s most important is finding the right combination for you.

To help you find which that is, let’s look closer into the advantages and disadvantages of each hot water system.


Tankless (Continuous Flow) Water Heaters 

Tankless water heaters, otherwise known as continuous flow hot water systems, consistently deliver hot water at any given time regardless of your consumption needs. This is the most significant difference between tankless and storage water heaters, with tankless systems only heating water as soon as you turn on a tap. As storage tank systems continually heat water, tankless hot water systems are more cost-friendly in the long term.


  • Energy-efficient. In a report by the US Department of Energy, in homes that use 150L or less each day, tankless hot water systems can save up to 34% more energy than storage tank systems. Those that use more than 150L each day can expect up to 14% energy savings.
  • Minimal space is needed to install. As the name implies, without a large storage tank, these hot water systems are ideal for any home — particularly those without a lot of free space.
  • Longer lifespan. Tankless water heaters last much longer than storage tank hot water systems. Having regular maintenance conducted, you can expect it to last approximately two decades.


  • Costly to install. Opting for a tankless hot water heater can be expensive in the short term and installation can cost you double that of a storage tank. However, it is important to note that its longer lifespan offsets this.
  • Reduced water pressure. Each tankless water heater should give you a good idea of its flow rate capacity; the amount of hot water that can be used simultaneously. Tankless water heaters don’t run off mains pressure like the storage tanks do so if you enjoy having strong pressure in the shower, then tankless may not be right for you.


Storage Water Heaters

While hot water storage tank systems are less energy-efficient and don’t last as long as tankless water heaters, they remain one of Sydney’s most popular hot water heater choices. Storage water heaters feature a large tank and store large volumes of hot water ready to be distributed throughout the house via a pipe at the top of the tank.


  • Cheaper upfront costs. Unlike tankless, storage water heaters are easier to purchase and install.
  • Simple, inexpensive repairs. As the system is less complex than tankless water heaters, storage hot water systems are cheaper to repair and maintain.
  • Cost-effective when paired with solar. Although it requires constant energy usage to keep the water hot, storage hot water systems become significantly cost-effective and energy-efficient when paired with solar panels. 


  • Takes up a lot of space. Their large size makes it unsuitable for homes with limited space.
  • Shorter lifespan than tankless water heaters. Storage water heaters need replacing more often when compared to tankless. However, regular hot water maintenance inspections with the right hot water specialist easily extend its lifespan.
  • Less energy-efficient. Storage water heaters require the water in the tank to be kept hot. Doing so causes higher energy bills and makes this option unsuitable for households that regularly use large amounts of water.


Which Water Heater is Better for You?

Understanding how continuous flow and storage hot water systems differ is the first step toward selecting the best water heater for your needs. If you use water conservatively and value savings on your energy bill while being able to overlook particular hot water output challenges, the tankless system is for you. But if you prefer saving now and spending later and using hot water regularly, the storage water heater may be the right choice for you as long as you have enough space and don’t live in a cold climate.

Ready to find the right water heater for you? Visit our products page to learn more about the different brands, makes, and models of hot water systems in the market! You can also call us at 1300 763 734 to ask questions about our hot water services. At Atomic Hot Water Repairs, we cover every aspect of hot water system services, from installation to repair, replacement, and maintenance. We can also service all types of water heaters





Keep in touch

Subscribe to our Newsletter

Related Articles

Subscribe to our Newsletter