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Hot Water Storage Tank vs. Tankless Water Heater

Hot Water Service

Hot Water Storage Tanks vs. Tankless Water Heaters

The availability of hot water is a basic necessity for every household. From bathing and cleaning, to laundry and dishes, all these chores require an efficient hot water system to fulfil your daily hot water requirements. However, with numerous types of hot water systems available on the market, it often gets hard to make the right choice for your home. In this blog, we will take you through a detailed comparison between the two basic types of water heaters, i.e.

  • Hot water storage tank
  • Instantaneous or tankless water heater

The Difference Between a Hot Water Storage Heater and an Instantaneous Water Heater

As the name implies, a hot water storage tank heats up the water in a tank and then stores it until you need it. Instant water heaters, on the other hand, heat up water as and when it is needed. While both have their own pros and cons, it really depends on your needs as to which one suits you best. Here are some key factors to consider before deciding on which one to purchase:


Hot water storage tanks are usually cheaper to install, but they can be pretty expensive to run. This is because they constantly heat the water in the tank, even when you are not using it. Whereas, instantaneous water heaters only heat up the water when you need it. Although their installation cost is higher, instant hot water systems are much cheaper to run in the long run.

Space Requirements

A storage tank water heater can store large volumes of water; therefore, you need to be sure that you have ample space before investing in a hot water tank installation. On the other hand, instantaneous hot water systems have a compact design, so they can be a good choice for you if you have space limitations.


Instant water heaters are smaller, with limited heating capacity, which makes them suitable for families with limited hot water usage. Whereas, hot water storage tanks can provide a large amount of hot water at once, making them ideal for families with multiple bathrooms. So, if you have a big family that needs a lot of hot water all the time, then a storage tank heater might be more suitable for you.

Energy Efficiency

Since hot water storage tanks store a large amount of water, it usually takes longer for them to fill up and heat the water. This makes them relatively less energy-efficient than their instantaneous counterparts. However, once the water is heated, a good quality hot water storage tank can retain heat for longer durations, saving your energy costs.


While the initial installation cost for storage tank hot water systems is lower than instantaneous water heaters, you certainly need to be more careful with their upkeep. Poor maintenance can cause the tank to leak or rust, leading to costly repairs or untimely replacement of your hot water tank.


As compared to hot water storage tanks, instantaneous water heaters can last much longer. While a storage tank hot water unit needs replacement roughly after 10 to 15 years, a good-quality tankless water heater can last for as long as 25 years.

So, if you have a limited budget, a big family and ample space for your new water heater installation, you can opt for a hot water storage tank. But if you have space constraints, and you want to save on the running costs of your water heating unit, an instantaneous hot water system might be a better choice for you. If you are still unsure, the best is to consult a hot water specialist before making a final decision.

At Priority Plus Plumbing, we are the trusted hot water plumbers, offering professional installations, repairs, maintenance and replacement of all types of hot water systems for homes and commercial properties across Sydney’s Sutherland Shire. Whether you want to install a hot water storage tank or an instantaneous hot water system, we can make the entire process smooth and easy for you.

Have a look at how our professional plumbers successfully completed a hot water storage tank installation for a vaccination clinic in Macquarie Fields.

Call now.



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