Plumbing

Storage vs Tankless Water Heaters

January 25, 2026
Plumbing

Storage vs Tankless Water Heaters

January 25, 2026

Reliable hot water isn’t a luxury — it’s a necessity. Whether you’re thawing out after a day on the slopes or tackling laundry in January, your water heater does a lot of heavy lifting.

But should you stick with a traditional storage tank or upgrade to a tankless system? Let’s break down the real-world pros and cons for homeowners here in Big Sky Country.


Storage Water Heaters: Simple and Reliable

The classic storage-tank water heater keeps a set amount of water hot and ready to use — usually 40–80 gallons.

Pros

  • Affordable setup: Lower upfront cost and straightforward installation.
  • Easy maintenance: Most plumbers can repair or replace parts quickly.
  • Hot water in outages: If the power goes out, you’ll still have some stored hot water.

Cons

  • Energy waste: Stored water cools off and needs constant reheating.
  • Limited supply: As hot water is used, the tank will need time to recover.
  • Bulky: Takes up valuable space in smaller mechanical rooms.

(Average lifespan: 10–15 years.)

Tankless Water Heaters: Efficient and Endless

Tankless, or “on-demand,” systems heat water only when you turn on the tap. They’re compact, efficient, and built to last.

Pros

  • Energy efficient: No standby loss means lower utility bills.
  • Unlimited hot water: Perfect for back-to-back showers or large families.
  • Long-lasting: Often 20+ years with routine maintenance.

Cons

  • Higher upfront cost: Installation can run $2,000–$3,000 or more.
  • Flow limits: One unit might not handle multiple fixtures at once.
  • Power dependent: No hot water during an outage.

Which System Fits Your Home Best?

If you want simplicity and lower upfront cost, a tank model still gets the job done.

If you’re after efficiency, longevity, and endless hot water, a tankless heater is worth the investment — especially if you’re planning to stay in your home long term.

And remember: Montana’s hard water can shorten the life of either system without proper maintenance, so routine flushing and filtration go a long way.

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