Upgrading the appliances in your home is all about saving money and getting to enjoy your house more. When your old water heater starts to seem more like a big tank of cold water, then you know it's about time to start looking into replacements. Sticking another traditional water heater in place is often the cheapest option initially, but tankless water heaters are becoming increasingly more popular. These newer units offer a variety of advantages that easily justify their higher price point for many homeowners. If you're thinking about ditching that old tank, here are three problems that you won't face with a new tankless heater.

Higher Utility Costs

Have you ever looked at your hot water tank and wondered about the cost of heating such a large volume of water? Traditional water heaters work by keeping an entire reservoir of water (often 40 gallons or more) at the desired temperature. The water heater must maintain the temperature of this water even when you aren't using it, wasting electricity, gas, or oil. When appliances or fixtures demand large amounts of hot water, the heater must then thoroughly reheat a tank now filled with cold water.

Tankless heaters don't store water but instead heat water on demand. Since your heater is only running when you need hot water, you don't need to worry about wasting energy to keep a giant tank of water warm.

Running Out Of Hot Water

Have you ever tried to take a nice, hot shower while someone else in your house is washing dishes or running the clothes washer? Getting a sudden blast of colder water is no fun, but this is an inevitable consequence of traditional water heater design. Your water heater needs time to bring the water in the tank up to temperature, and this means that you're in for a chilly time if demand exceeds the tank's capacity. While tankless water heaters still need to be appropriately sized for peak hot water flow, there is no risk of running out of hot water since the water is heated only on an as-needed basis.

Slow Hot Water Delivery

How often have you had to stand around waiting for your shower to get warm before stepping in? Not only is this frustrating, but it also wastes water! This delay is often caused by the distance between the water heater and the fixture or appliance demanding hot water. Small tankless heaters can be installed inline with fixtures, providing nearly instantaneous hot water. This rapid delivery is so convenient that some homeowners choose to install small tankless heaters for single fixtures, such as near showers or the kitchen sink.

While tankless water heaters won't solve every plumbing problem that you might face, they are a great option to deal with some of the typical annoyances you might encounter with traditional tank water heaters. If you can afford the initial cost, they are worth a serious look for your next water heater replacement.