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When snow starts to blanket the Rocky Mountains, no one wants to run out of hot water. When you are choosing between a tankless and a traditional water heater, it plays an important part in your home’s comfort and energy efficiency. While both will provide you with hot water, their performance and reliability can differ, especially at high altitudes.

Understanding the Two Systems

Traditional water heaters, also called storage tank units, heat and store 30 to 80 gallons of water in an insulated tank. The water stays hot until you need it. When the tank empties, it takes time to refill and reheat it. Tankless water heaters, on the other hand, heat water only when you turn on the tap. Cold water flows through a heat exchanger powered by gas or electricity, delivering an endless supply of hot water on demand.

Both systems can serve Colorado homes well, but the differences in energy use, performance and cost can make one option better suited to your household than the other.

Energy Efficiency and Cost Savings

Energy efficiency is where tankless water heaters shine. Since they do not keep a tank filled with hot water, they will be up to 30% more efficient than standard models. This can translate into savings on your gas or electric bills, particularly in households where people are home and use hot water throughout the day.

Efficiency does not always mean lower upfront costs. Tankless systems tend to cost more to install. In fact, it can be two to three times as much as a traditional model. Installation may also require upgrading gas lines or vents, especially in older Colorado homes built before modern efficiency standards. Over time, you can recoup the higher initial investment through lower energy usage.

Traditional water heaters have lower installation costs and simpler maintenance, which makes them appealing, if you are budget conscious. Since they continuously heat water, they consume more energy.

Performance and Comfort

If your family runs the dishwasher or laundry while members of your household are getting a shower, a traditional tank water heater might struggle to keep up. Once the stored hot water runs out, you’ll need to wait for the tank to refill and reheat. Tankless systems, however, deliver hot water continuously if you stay within the unit’s flow capacity.

In multistory Colorado homes or those with several bathrooms, a single tankless unit might not handle simultaneous demand effectively. You can install multiple tankless units to maintain a consistent flow. While this increases comfort and reliability, it will also add to installation costs.

Traditional models, with their large reservoirs, provide a steady stream of hot water for shorter bursts of high demand. For instance, a 50-gallon tank can handle two showers and a dishwasher cycle simultaneously. Once the tank empties, recovery time becomes a factor.

High-Altitude Performance in Colorado

Colorado’s high elevations can be above 8,000 feet, which creates water-heating challenges. The thinner air at high altitudes will contain less oxygen. This will affect the combustion efficiency of most gas water heaters. Tankless units operate at or near sea level. Without proper adjustment, they may lose heating capacity or produce error codes in higher regions. Many manufacturers do offer high-altitude models that recalibrate the gas-to-air ratio for better combustion.

Traditional tank water heaters also experience minor efficiency losses at altitude, but they tend to be less sensitive to air density. When you choose a new unit, always check the altitude rating, and make sure that your installer is comfortable with Colorado’s high-elevation requirements.

Longevity and Maintenance

A well-maintained tankless water heater can last up to 20 years or more. A traditional tank system lasts about 10 to 15 years. Tankless units need regular descaling, especially if you have hard water. Much of Colorado has mineral-rich groundwater, which can cause calcium buildup inside heat exchangers. Installing a water softener or scheduling annual flushing can help prevent scale damage.

Traditional models require less frequent maintenance but are more prone to tank corrosion and leaks. Anode rod replacements and regular flushing will help to protect the interior lining of your tank, but once corrosion shows itself, replacement is necessary.

Cost vs. Value

When comparing tankless and traditional systems, consider short- and long-term costs. Tankless systems offer long-term savings and space efficiency but require a higher initial investment. Traditional units cost less initially and work reliably in most situations, but they consume more energy and need replacement sooner.

If you plan to stay in your Colorado home long term, the efficiency and longevity of a tankless system is the better choice. Those seeking a quick, cost-effective replacement may prefer a traditional tank.

Making the Right Choice for Your Colorado Home

Tankless systems provide endless hot water but require careful planning for altitude and flow rate. Traditional water heaters offer steady performance but demand more maintenance over time. Before you decide which option is best for you, consult our team at Mountain Valley Plumbing, Heating and Cooling. With over 15 years of serving the Boulder area, we understand high-altitude operation and Colorado’s water quality. Contact us to schedule an appointment.

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