Tankless systems are easier and less expensive to install for a few reasons. They require less additional components, are smaller and more modernized in design, and have less of a need for any upgrades to your home. A tank system may need you to install a new gas line or upgrade your electrical system, depending on the age and existing connections in your home.

When it comes to initial costs, traditional tank water heaters are generally less expensive than tankless water heaters. Where you save is in the life span of the tankless system. You’ll get on average 5 more years of life, and save every month on energy costs to heat your water.

The amounts may be significant depending on how you consume hot water in your household. A busy family in Chicago may have a heavy demand on hot water which will pay off much sooner with a tankless system.