Tankless vs. Storage Water Heaters: Which is Best For Your Ottawa Home?

When it comes to choosing the right water heater for your Ottawa home, one of the most important decisions you’ll make is whether to go with a tankless or storage (traditional) water heater. Each option has its own set of advantages, and the best choice for you depends on factors like energy efficiency, upfront cost, and your household’s hot water needs.

At Francis Plumbing Heating & Cooling, we understand that selecting the right water heating system is an important decision that impacts both your comfort and your energy bills. As part of our comprehensive heating services, we provide expert guidance on water heaters, helping you make informed choices that complement your home’s heating needs. In this blog, we’ll take a closer look at tankless versus storage water heaters, comparing their features, benefits, and drawbacks, to help you make the best choice for your Ottawa home.

By the end, you’ll have a better understanding of which system will deliver the most value for your needs—whether you are upgrading an old unit or installing a brand-new one.

What is a Storage (Tank) Water Heater?

A storage water heater also known as a tank-style water heater, is the most traditional type of water heating system used in Ottawa homes.. It stores a large volume of water—typically between 40 and 80 gallons—in an insulated tank, where it is continuously heated to a set temperature. When you turn on the hot water tap, the system draws from the pre-heated water in the tank and delivers it immediately.

This type of water heater has been a reliable choice for Ottawa homeowners for decades, providing a consistent and ready supply of hot water. It’s especially popular in households with higher hot water demands, like those with larger families or multiple bathrooms.

How a Storage Water Heater Works

In a storage water heater, cold water enters the tank and is heated using either electricity, gas, or propane. The water is kept at a constant temperature, ready for use whenever you need it. The tank’s thermostat regulates the temperature to maintain a steady supply of hot water. When the water in the tank is used up, it refills and begins heating again, ensuring there’s always a supply of hot water (though you’ll have to wait a bit if the tank empties out).

Pros of Using Storage Water Heaters for your Ottawa Home

Lower Initial Cost: The upfront cost of a storage water heater is typically lower than a tankless water heater, making it an attractive option for homeowners on a budget. It’s generally more affordable both to purchase and to install.
Simple Installation: Storage water heaters are relatively easy to install, especially if you’re replacing an existing unit. Most homes in Ottawa are already equipped with the plumbing and ventilation needed for this type of system, which can make installation quicker and more straightforward.
Reliable for Households with High Water Usage: For households that use large amounts of hot water or have multiple people using hot water simultaneously (e.g., showers, laundry, or dishwashing), a storage water heater can be a good fit. As long as the tank is large enough to meet the household’s needs, it can supply hot water to multiple outlets at once.

What Is a Tankless Water Heater?

A tankless water heater, also known as an on-demand or instantaneous water heater, heats water only when you need it—no tank, no waiting. Instead of storing hot water like a traditional storage heater, a tankless system heats water directly through a high-powered burner or electrical element as it passes through the unit.

In Ottawa, where winters can be cold and demand for hot water is high, tankless water heaters offer a reliable solution for homeowners who need a steady supply of hot water without worrying about running out or wasting energy on standby heating.

How a Tankless Water Heater Works

When you turn on a hot water tap, cold water enters the tankless unit. The system then heats the water instantly, delivering it at your desired temperature. Because there’s no storage tank, the system can provide hot water continuously as long as there’s a demand.

Energy Efficiency of a Tankless Water Heater

One of the biggest selling points of a tankless water heater is its energy efficiency. Traditional storage water heaters constantly maintain a large volume of water at a set temperature, leading to energy loss. Tankless systems, on the other hand, only heat water when needed, which means no standby energy loss. This can result in noticeable savings on your energy bills over time—especially if you live in a household that uses hot water sparingly or in a more efficient, “on-demand” way.

Size and Installation Considerations for Tankless Water Heaters

Tankless water heaters are compact and space-saving, making them an excellent choice for Ottawa homeowners with limited space or those looking to free up room for storage. These units are often installed on the wall, taking up much less room compared to the large tanks of traditional water heaters. They can be installed both indoors and outdoors, although outdoor models may require more protection against the elements in colder climates.

Key Differences Between Tankless and Storage Water Heaters

Feature	Tankless Water Heater	Storage (Tank) Water Heater
Energy Efficiency	Extremely high efficiency (82%-98%)—only heats water on demand, eliminating the standby heat loss associated with tank-style heaters. Tankless units save money over time by reducing energy consumption. Additionally, condensing tankless systems are up to 98% efficient, making them a superior choice for energy-conscious homeowners	Lower efficiency—newer storage heaters have an energy factor of 0.64% or less. These systems heat and reheat water constantly, leading to higher energy consumption and larger utility bills, especially in colder climates like Ottawa’s.
Water Supply	Endless hot water—tankless systems provide an uninterrupted flow of hot water for as long as needed. This is especially beneficial for large families or homes with multiple bathrooms where simultaneous hot water usage is common.	Limited hot water supply—once the tank is empty, you’ll need to wait for it to reheat. This can lead to long waits during periods of high demand, especially in larger households.
Size & Space Considerations	Compact, space-saving design—tankless systems are wall-mounted and take up very little space, making them ideal for homes with limited space like in Ottawa. You can install these units in smaller areas, such as closets or attics, freeing up valuable floor space.	Bulky and space-consuming—storage water heaters take up considerable floor space with large tanks that can weigh hundreds of pounds. This can be inconvenient for homes with limited room or in areas with basements that are already crowded with other utilities.
Initial Cost & Long-Term Value	Higher upfront cost for purchase and installation, but significant long-term savings on energy bills. Over 20 years, a tankless system will cost less than a storage heater, thanks to its energy efficiency and longer lifespan (20–25 years, twice the life of a tank heater). With financing options available, even homes on a fixed budget can make the switch to tankless.	Lower initial cost for purchase and installation, but ongoing higher energy costs and the potential for earlier replacement (10–12 years). Rental fees can also add up over time, as renting a water heater in Ottawa can cost 5 to 10 times more than purchasing outright. Consider the long-term expense before opting for a rental agreement.
Environmental Impact	Significant environmental benefits—tankless units reduce your carbon footprint by up to 2 pounds of carbon per day. Over 20 years, this equates to a reduction of over 7 tons of CO2, which is the same as eliminating two cars. Tankless systems also conserve water, as they provide hot water on demand without the constant reheating of large tanks.	Higher environmental impact—traditional water heaters keep 400 pounds of water hot 24/7, leading to constant energy waste. These systems are much less eco-friendly due to their inefficiency and larger carbon footprint.

Rent vs. Buy: Which Water Heater Option is Right for Ottawa Homeowners?

When replacing your water heater, Ottawa homeowners typically face three options: rent, buy outright, or finance. Each has its own pros and cons, depending on your budget and long-term goals.

Renting offers a low upfront cost—typically between $15 to $30 per month—but can end up being much more expensive over time. The average lifespan of a water heater is about 10 years, and after about 8 years, you’ll likely have paid the full cost of the unit but will still be paying monthly rental fees. In fact, renting a water heater can cost up to 35% more than buying outright, even with maintenance included.

Buying outright eliminates ongoing fees and is the most cost-effective option in the long run. While the upfront cost can be between $2,000 and $4,000, once it’s paid off, you won’t have monthly payments. If you can afford the lump sum, buying offers the best value.

Financing is a great middle-ground, allowing you to spread the cost over 12 to 60 months. Monthly payments usually range from $50 to $100, and while you’ll pay a bit more due to interest, once your financing term ends, you own the unit.

Overall, renting a water heater often leads to higher long-term costs, while buying or financing usually saves you money in the long run. At Francis Plumbing, we recommend exploring all your options to find the most cost-effective solution for your home. Whether you’re looking to buy outright or finance your purchase, our team can help guide you through the process with clear pricing and no hidden fees. Be sure to ask for a full breakdown of rental costs, including any buyout fees, before committing to any rental agreement. We’re here to help you make the best decision for your budget and home.

Professional Water Heater Installation and Maintenance Service Provider In Ottawa Since 1933

At Francis Plumbing Heating & Cooling, we’ve built a reputation for providing expert hot water tank installations, repair services, and ongoing maintenance in Ottawa. With years of experience in the industry, our team is equipped to handle all types of water heaters, from traditional storage tanks to modern tankless units. Whether you’re installing a new water heater, replacing an old one, or needing urgent repairs*link to page, our certified technicians have the knowledge and expertise to ensure your system is installed and running at peak performance.

We understand how essential hot water is for your daily comfort, which is why we are committed to delivering top-notch service that meets your needs and exceeds your expectations.

Gold Maintenance Plans for Hot Water Tanks

To ensure your hot water tank continues to operate efficiently and reliably for years to come, Francis Plumbing offers our Gold Maintenance Plan. Regular maintenance is key to extending the lifespan of your unit, improving energy efficiency, and preventing costly repairs down the road.

Our Gold Maintenance Plan for Hot Water Tanks includes:

Annual Inspections & Tune-Ups: Our expert technicians perform thorough inspections and routine maintenance to keep your hot water tank running at its best.
Flushing & Sediment Removal: We clean and flush your tank to prevent sediment buildup, which can reduce efficiency and cause long-term damage.
Safety Checks: We check for gas leaks, inspect pressure and temperature settings, and ensure everything is functioning safely.
Priority Service: If your tank experiences issues, you’ll receive priority scheduling for repairs, minimizing downtime and restoring your comfort quickly.
Exclusive Discounts: Enjoy a 20% discount on any repairs and reduced diagnostic fees, helping you save on repairs and service calls.
Improved Energy Efficiency: Regular maintenance optimizes your water heater’s efficiency, reducing energy consumption and lowering utility bills.

For just one low monthly payment, our Gold Maintenance Plan provides peace of mind by meeting or exceeding manufacturer warranty requirements. This proactive care not only helps extend the life of your unit but ensures that your hot water system remains efficient, safe, and reliable for years.

Call to Action

As the leading provider in Ottawa and surrounding areas such as Stittsville, Carp, and Kanata,Nepean, Barrhaven, Carleton, Francis Plumbing Heating & Cooling has been delivering reliable water heating solutions for over 80 years. Whether you’re looking for a tankless on-demand water heater or a traditional hot water tank, our expertise ensures that the system you choose will work perfectly in Ottawa’s climate.

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Financing Options Available for Water Heaters

We offer flexible financing solutions to make your water heater purchase more affordable. Choose from the following options:

Rent-to-Own Water Heater: Enjoy the benefits of a high-efficiency tankless water heater with the convenience of a rent-to-own plan. No long-term commitment, and the option to own your water heater at the end of the agreement.
Installment Plans for Water Heaters: Spread the cost of your new water heater over time with our easy installment plans. This way, you can invest in a top-of-the-line tankless water heater without the upfront cost.

Expert Water Heater Installation

Our team of fully licensed and certified professionals is here to ensure your tankless water heater is installed safely and correctly. From selecting the perfect water heater model to expert installation, we handle it all with precision and care. Trust us to provide the best water heater installation services, giving you peace of mind and hot water on demand.

Call today to find out whether a tankless water heater or storage water heaters is the right choice for your water heating needs at 613-224-0041.

Tankless vs. Storage Water Heaters: Which is Best For Your Ottawa Home?