Picking the right water heater is a big decision, especially in a place with extreme weather like Las Vegas. More and more, people are choosing modern tankless heaters over the traditional tank models. That’s because heating water can be almost 20% of a home’s utility bill, and everyone wants to save money.
In a desert climate like Southern Nevada, water heaters face special problems. The area’s “hard water” is full of minerals that can build up and cause damage, and the scorching summer heat can shorten a heater’s life. When choosing, you need to think about your family’s size, how much hot water you use, and where the unit will be installed, which in most cases in Las Vegas will be the garage.
The biggest difference comes down to cost. Some heaters run all the time to keep a tank of water hot, while others only flash on when you turn on a faucet. We will explain in this guide how both types of heaters work in Las Vegas so you can choose what’s best for your home.
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How the Two Types of Water Heaters Work
When you’re upgrading your water heater in a desert home, you have two main choices. Consumer Reports recently tested nine models from brands like Rheem and Rinnai and found big differences in how they work.
- Tank Heaters: These hold 30 to 80 gallons of water and use energy to keep it hot all day and night. This means you get hot water instantly, but it wastes energy when you’re not using it (this is called “standby heat loss”).
- Tankless Heaters: These don’t store any water. When you open a hot water faucet, water flows through heating coils that heat it up on the spot. They only use energy when you need them.
In Southern Nevada, high energy costs make people very interested in efficient models. The hard water and 110°F summers also make people want low-maintenance options. A 2023 analysis found that “Tankless models showed 24% better energy efficiency in controlled tests compared to storage units.”
Tankless heaters are also smaller, which can save valuable space in the garage. However, putting one in an older home might require hiring a professional to upgrade your electrical or gas lines first.
The Pros and Cons for Las Vegas Homes
Tankless Heater: The Best and the Worst
- Pro: They don’t waste energy keeping water hot. You get an endless supply of hot water, which is great for families that use more than 300 gallons a day. They are also small and can save you 10 or more square feet of space.
- Con: They cost a lot more money to buy, often over $1,500. Putting one in an older home might mean you have to pay extra for electrical work. Because of the hard water in Las Vegas, they need to be cleaned out every year to prevent mineral buildup.
Tank Heater: The Good and the Bad
- Pro: They cost up to 60% less than tankless models to buy. They are simple to use and, as one 2023 report said, “maintain stable temperatures during simultaneous faucet use.”
- Con: They waste 10-15% of their energy just reheating the water in the tank. If your family uses more than the 80 gallons the tank can hold, someone might get a cold shower. They also take up a lot of floor space.
The EPA’s Water Sense program advises that “Proper maintenance extends equipment lifespan by 40% in hard water regions.”
How Tankless Heaters Save You Money
Because they only run when you need them, tankless heaters can cut your water heating energy waste by up to 34%. Some models can deliver over 10 gallons of hot water per minute, which is enough to run multiple showers at once.
A Department of Energy study found that “Properly maintained tankless systems recover upfront costs through utility savings within 5-7 years.”
They also last a long time, more often than 20 years. Many have replaceable parts, so you can fix them instead of buying a whole new unit. Their wall-mounted design also frees up floor space in garages or utility rooms.
Some even have Wi-Fi apps that let you control the temperature and tell you when they need to be cleaned.
The Advantages of a Traditional Tank Heater
For homeowners on a tighter budget, a classic tank heater is often the best choice because it’s both affordable and reliable.
- Lower Cost and Easier Installation: A standard 40-gallon gas model from Rheem might cost $709, while a similar tankless one costs $1,049. Local contractor Mark Rinaldi explains, “Standard hookups use existing connections. No electrical upgrades or gas line modifications are typically needed.” This means installation is usually faster and cheaper.
- Consistent and Familiar: The tank of pre-heated water provides instant hot water. As Energy Star’s 2024 guide reports, “Storage tanks handle simultaneous appliance use better than most entry-level tankless systems.” They are also easier and about 30% cheaper to repair since most plumbers have worked on them for decades.
Expert Advice on a Las Vegas Water Heater
Local professionals say you need to think beyond the price tag.
- Professional Recommendations: Plumber Craig Husted of Las Vegas’s Water Heater’s Today LLC warns, “Mineral buildup clogs units twice as fast here.” He suggests pairing a tankless system with a water softener. He also explains that a tankless unit is a nice perk for home buyers, but it doesn’t really increase the home’s value. “It’s a ‘nice-to-have’ that speeds up sales in competitive markets.”
- Maintenance Costs: A yearly cleaning for a tankless unit costs about 120−180. A tank heater needs a part called an “anode rod” replaced every 3-5 years for about $90. Both are affected by hard water, but labor fees for complex tankless repairs can be 45% higher than for tank heaters.
Your Home Deserves the Best Water Heater
Choosing the right water heater for your desert home means balancing cost now with savings later.
Modern tankless heaters are more energy-efficient and can save you money on your utility bills over time. They also last longer and save space.
Traditional tank heaters are cheaper to buy and install.
They are reliable and do a great job of providing lots of hot water to the whole family at once.
Either way, you need a system that can handle the demands of your household and the challenges of the Las Vegas climate.
Read Next: Upgrade Your Hot Water System: A Homeowner’s Guide