If you live in an older Toronto home, switching to a tankless water heater can save space, cut energy costs, and provide endless hot water. Unlike bulky storage tanks, tankless systems heat water only when needed, reducing energy use by up to 50%. They’re compact, wall-mounted, and last over 20 years - nearly twice as long as traditional tanks. However, older homes may require upgrades like gas line adjustments or electrical panel updates, which can raise installation costs. Rebates in Ontario can help offset these expenses, making tankless systems a smart long-term investment.
Key Benefits:
- Energy Efficiency: Up to 95%, compared to 62% for storage tanks.
- Space-Saving: Wall-mounted and suitcase-sized, freeing up to 16 sq. ft.
- Longevity: Over 20 years, almost double the lifespan of tank models.
- Continuous Hot Water: No running out, even with multiple uses.
Things to Consider:
- Installation Costs: $2,800–$8,500, including possible upgrades.
- Rebates: Save up to $1,650 through provincial and federal programs.
Tankless water heaters are a practical solution for older Toronto homes, offering efficiency and convenience that traditional systems can’t match.
PROS and CONS of Going From a TANK to TANKLESS Water Heater
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Problems with Traditional Tank Water Heaters in Older Toronto Homes
Traditional tank water heaters come with a host of challenges, which can be especially pronounced in older Toronto homes.
Wasted Energy and Higher Utility Bills
One major drawback of traditional tanks is their constant reheating of water to maintain temperature, even when no one is using it. This standby heat loss leads to unnecessarily high utility bills.
Toronto's hard water compounds the issue. Minerals like calcium and magnesium accumulate as scale on heating elements, forming a barrier that makes the heater work harder - particularly during the city’s cold winters. Furthermore, older homes often rely on natural venting through a chimney, an outdated system that loses heat much faster than modern venting methods. This inefficiency not only increases energy consumption but also drives up your monthly expenses.
On top of that, these systems take up a lot of physical space, which is a premium in older homes.
Limited Space in Older Homes
Traditional water heaters require a significant amount of floor space, plus an extra 24 inches of clearance for proper air intake. In the small basements and utility areas typical of older Toronto homes, this can be a major inconvenience.
The bulky size forces homeowners into a difficult decision: sacrifice valuable space for a larger tank or opt for a smaller tank that may not meet the household's hot water needs. Tight quarters also make accessing the tank for maintenance a hassle, which often leads to skipped upkeep - only worsening the system's performance over time.
Regular Maintenance and Shorter Lifespan
Keeping a traditional water heater running smoothly demands ongoing maintenance. Toronto’s hard water leaves sediment at the bottom of the tank, creating "hot spots" that can damage heating elements prematurely. If the tank isn’t flushed regularly, the sediment hardens, leading to reduced efficiency and loud rumbling sounds.
Another critical component, the sacrificial anode rod, needs periodic replacement to prevent rust inside the tank. If this is neglected, the tank itself begins to corrode. When a tank fails, it can leak anywhere from 20 to 80 gallons of water, potentially causing extensive damage to your basement and belongings.
Even with diligent maintenance, traditional tanks only last 10–15 years. Their low efficiency - typically around 62% - means higher energy costs over time. These recurring problems highlight the need for a modern solution that saves energy, maximizes space, and reduces maintenance headaches.
Benefits of Tankless Water Heaters for Older Toronto Homes
Older Toronto homes often face challenges like wasted energy, limited space, and high maintenance. Tankless water heaters address these issues with targeted solutions.
Better Energy Efficiency and Lower Costs
Tankless water heaters only heat water when you need it. This eliminates the energy wasted on keeping a tank full of water hot all day. Instead, cold water flows through the unit and is heated instantly, achieving about 95% efficiency, compared to the 62% efficiency of conventional storage tanks.
"An ENERGY STAR certified tankless water heater uses 30% less energy, on average, than a storage tank type." - Natural Resources Canada
For Toronto households, this efficiency can reduce water heating energy use by 24% to 34%. Over its lifetime, a tankless system could save you approximately $1,800 in energy costs.
And it’s not just about energy - this efficiency also means tankless systems take up much less space.
Smaller Size and More Usable Space
Traditional water heaters can hog up to 16 square feet of floor space. Tankless systems, on the other hand, are compact and wall-mounted - roughly the size of a carry-on suitcase. This makes them perfect for older Toronto homes where basements might be cramped or crawlspaces unusually low. You can even install them in tight spots like closets, under sinks, or on walls, making them a flexible choice for homes with tricky layouts.
This small footprint is a game changer for freeing up valuable space, but the benefits don’t stop there.
Continuous Hot Water Supply
Say goodbye to running out of hot water. Unlike storage tanks, which can only provide as much hot water as their tank holds, tankless systems heat water as it flows through. This means you’ll have an uninterrupted supply of hot water - even if multiple showers, taps, or appliances are running at the same time.
Gas-powered models typically deliver flow rates of 2 to 5 gallons per minute, which is more than enough for a busy household. For older Toronto homes with growing families, this reliability is a major plus.
But it’s not just performance - it’s also about longevity and ease of maintenance.
20-Year Lifespan and Less Maintenance
Tankless water heaters are built to last. Many models have a lifespan of 20 years or more, nearly doubling the 10 to 15 years you’d get from a traditional storage tank. Plus, because they don’t store water, they’re less prone to rust and corrosion.
"Tankless water heaters have a life span twice as long as traditional systems because the risk of rust and corrosion is significantly lower." - Hoerner Heating & Plumbing
Maintenance is simpler, too. Traditional systems often require flushing out sediment, replacing anode rods, and dealing with potential leaks that can release 40 to 80 gallons of water. If you experience a sudden failure, Toronto emergency plumbing services can help mitigate damage. In contrast, tankless units typically only need annual descaling. In areas with hard water, like Toronto, you might need to flush the system every 2 to 5 years to prevent calcium buildup.
For older homes with narrow stairs or tricky access points, the reduced need for heavy tank replacements is a practical advantage that can save time and effort.
What to Consider Before Installing a Tankless Water Heater in an Older Home
Tankless water heaters offer plenty of benefits, but if you live in an older Toronto home, you might need to make some updates to your infrastructure before installation. Being aware of these potential requirements can help you budget more effectively and ensure you’re set up to enjoy the energy savings these systems provide.
Professional Assessment and Installation
Older homes often have ½‑inch gas lines, which work fine for traditional water heaters but fall short for tankless models that need ¾‑inch lines to handle 150,000–200,000 BTUs. Venting is another area that usually requires an upgrade. Traditional chimneys aren’t compatible with tankless systems, which require sealed wall venting - PVC for condensing models or stainless steel for non‑condensing units. If you’re considering an electric tankless unit, keep in mind that you may need two to four 240V breakers and possibly an electrical panel upgrade from 100 amps to 200 amps.
These upgrades don’t come cheap. Gas line and venting modifications can add between $750 and $3,200 to your project, while electrical upgrades may cost anywhere from $600 to $2,500.
"Older homes in Kitchener, Cambridge, and Guelph may need upgrades before installing a tankless system. A licensed HVAC company can check your setup, size the right unit, and make sure installation meets code." – Aire One KW
Hard water can also pose a problem for tankless water heaters by damaging the heat exchanger. A licensed plumber, such as Creed Plumbing, can evaluate your home’s plumbing and ensure everything complies with local codes. In Toronto, you’ll likely need separate permits for plumbing (around $150 to $350), gas (about $200 to $400), and electrical work (roughly $150 to $300). When all is said and done, total installation costs typically range from $2,800 to $8,500, with an average price of about $4,200.
These upgrades are critical to making sure your tankless system runs efficiently and reliably in an older home.
Rebates and Incentives in Ontario
Once you’ve accounted for the necessary upgrades, you may be able to take advantage of several rebate programs in Ontario to help offset your costs. For example, the Home Renovation Savings Program, which launches on January 28, 2025, offers up to 30% back on energy-efficient upgrades through Save on Energy and Enbridge Gas. If your tankless water heater is ENERGY STAR® certified, you could qualify for rebates between $500 and $750 through Ontario Water Heater Rebates. Additionally, the Energy Savings Rebate Program provides up to $1,000 (or 25% off) directly at participating retailers for condensing models that meet the criteria.
By combining these provincial rebates with federal programs like the Canada Greener Homes Grant, you could save $1,650 or more.
To qualify for these rebates, your tankless water heater must be ENERGY STAR® certified and installed by a licensed, registered plumber - DIY installations won’t cut it. You’ll also need to keep all relevant documentation, such as invoices, serial numbers, and proof of certification, to submit with your application. Many rebate programs require both pre‑ and post‑installation energy audits conducted by a registered energy advisor. The good news? You can get up to $600 in rebates to cover the cost of these assessments. Applications are usually processed within 30 to 60 days.
Tankless vs. Traditional Tank Water Heaters: Side-by-Side Comparison
Tankless vs Traditional Water Heaters Comparison for Toronto Homes
Here’s a straightforward comparison of tankless and traditional tank water heaters, focusing on their efficiency, space requirements, and long-term costs. Tankless systems are notably more efficient, offering up to $1,800 in lifetime savings. They heat water on demand, avoiding the constant energy drain associated with traditional tanks.
One of the biggest advantages of tankless models is their compact size. While traditional tanks can take up to 16 sq. ft., tankless units are wall-mounted and take up much less space - an important factor for older homes with limited room. Tankless systems also have a much longer lifespan, lasting 20+ years, compared to the 10 to 15 years typical of traditional tanks. However, the initial investment is higher, ranging from $2,500 to $5,000 installed for tankless units versus $1,200 to $2,500 installed for traditional tanks. Over time, the energy savings and durability of tankless systems often offset the upfront cost.
"Tankless water heaters have a life span twice as long as traditional systems because the risk of rust and corrosion is significantly lower." – Hoerner Heating & Plumbing
For homeowners in space-limited, older Toronto homes, switching to a tankless system can be a smart choice. The table below outlines the key differences to help you decide.
Feature Comparison Table
| Feature | Tankless Water Heater | Traditional Tank Water Heater |
|---|---|---|
| Efficiency | Up to 95% (on-demand) | 53%–70% (average 62%) |
| Hot Water Supply | Continuous | Limited to tank capacity |
| Size/Footprint | Compact, wall-mounted (suitcase size) | Large, floor-standing (up to 16 sq. ft.) |
| Lifespan | 20+ years | 10–15 years |
| Upfront Cost | $2,500–$5,000 (installed) | $1,200–$2,500 (installed) |
| Energy Savings | Up to 30%–50% reduction | Standard baseline |
| Lifetime Savings | Approx. $1,800 | Lower initial investment |
Conclusion
Tankless water heaters bring a smart combination of efficiency and space-saving benefits to older Toronto homes. These sleek, wall-mounted systems can achieve up to 95% efficiency, deliver a steady supply of hot water, and have a lifespan exceeding 20 years. Over their lifetime, homeowners could save between $80 and $150 annually on utility bills - adding up to around $3,000 in total savings. To make the most of these perks, proper installation is crucial.
By eliminating standby energy loss, these systems not only cut down on utility costs but also help reduce your carbon footprint. However, older homes often require upgrades, such as gas line modifications or electrical panel adjustments, to handle the higher power demands of a tankless unit. Hiring a licensed plumber to assess your home ensures the installation is safe, meets code requirements, and maximizes the system’s performance.
To enjoy these benefits, expert installation is essential. Creed Plumbing provides professional tankless water heater installation and maintenance services throughout Toronto. Their licensed technicians assess your home’s unique needs, recommend the right unit size, and offer ongoing maintenance like flushing and descaling to keep the system running smoothly. With transparent pricing and repair warranties, they ensure your investment performs reliably for years.
If you’re dealing with limited space, rising energy costs, or an outdated water heater, switching to a tankless system can save energy while enhancing your home’s comfort.
FAQs
How do I know what size tankless water heater my home needs?
To select the proper size for a tankless water heater, start by calculating your household's peak hot water demand in gallons per minute (GPM). Add up the flow rates of fixtures you might use at the same time, such as showers, sinks, or appliances. Next, figure out the temperature rise you'll need. In Toronto, groundwater typically sits at around 45°F, so subtract this from your desired hot water temperature. For example, if you want water at 120°F, your unit must handle a 75°F rise. For the best results, consider consulting a professional to ensure the unit is sized accurately for your home's needs.
Will my older Toronto home need gas, venting, or electrical upgrades?
Switching to a tankless water heater in an older Toronto home can come with a few extra considerations. You might need to upgrade your gas supply, venting, or electrical systems, depending on the specific model you select and the current setup of your home. These adjustments are essential to ensure the unit operates safely and efficiently.
Are Ontario rebates available for tankless water heaters, and how do I qualify?
Yes, Ontario provides rebates for tankless water heaters through initiatives such as the Enbridge Home Efficiency Rebate and the Ontario Home Renovation Savings Program. To be eligible, you need to own the home, have the tankless water heater installed by licensed professionals, and meet the specific conditions outlined by the program. Be sure to review the program guidelines carefully to confirm that your installation meets all necessary requirements.
