About 20% of a household's power consumption bill is for the heating of water. Most of this heated water is stored in cistern or storage tank systems which lose between 10% and 20% of the heat used to increase the temperature of water from the ambient temperature to the selected hot water temperature.
With such a large percentage of power being consumed this way it makes obvious sense to do whatever is possible to minimize overall energy consumption.
This can be done by insulating the storage heater better and also by lowering the maximum temperature of the water in the storage tank. Of course using less water will also result in savings. Heating costs can be reduced using tankless water heaters.
Below is a basic comparison between storage and tankless water heating systems.
Hot Water System feature variables compared below (click this link for more detailed information):
Tankless v Storage Tank
1. Energy cost... Lower cost reduced energy losses v. Higher losses ... higher energy usage
2. Unit size... Much smaller than hot water storage tank v Large compared to tankless hot water heater
3. Installation cost... Small compared to storage tank heater in new structures but higher in retrofit v More complex to install in new structures
4. Installation space... Compact unit, saves space taken up by storage tank hot water heater which can be used as closet for example v Bulky heater and tank system with difficult access normally
5. Capacity... When large quantities are required simultaneously flow can reduce or temperature of water is reduced v Normally depending on size of tank capacity is higher for simultaneous use
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