Types of Tankless Water Heaters

As more Calgary homeowners look for energy-efficient solutions to meet their household’s hot water demands, tankless water heaters have become an increasingly popular upgrade.

Unlike traditional hot water tanks, tankless systems heat water on demand—providing consistent hot water while saving space and reducing energy bills. Whether you’re replacing an aging water heater or building a new home, understanding the different types of tankless water heaters available in Alberta can help you make the right choice for your needs.

In this guide, the plumbing experts at Pete the Plumber explain the main types of tankless systems, their pros and cons, and what to expect during installation in Calgary homes.

The installation of a tankless water heater is not a DIY job and should only be handled by a licensed plumbing professional.

The old water heater will need to be removed and the new unit installed. Generally speaking, the newer unit should save space but there are other factors to consider that may not be obvious to a homeowner.

A licensed plumber with training and experience in all types of water heaters will ensure a professional installation that is safe, efficient, and cost-effective for your home.

The cost of installation will vary depending on the unit’s size and type, as well as the type of fuel the water heater uses and whether any modifications will need to be made to the home during installation.

When considering the costs of a new water heater (see below), the installation costs should be factored in. While some models are more affordable than others, they may be more complex to install, which will add to the total upfront costs of the new unit.

You need to make some important decisions when researching which tankless water heater to purchase. There are several main types on the market in Alberta.

The main considerations are:

• How does the unit heat water?
• What fuel is used?
• Is the unit designed for whole-home or point-of-use heating?

The most basic choice you will need to make is between a gas and electric water heater. With the abundance of affordable natural gas in Alberta, homeowners in Calgary have traditionally opted for gas solutions for home and water heating—so let us start there.

Most heaters in Alberta use natural gas to heat the water but propane may be an option. You will also need to consider whether the unit is non-condensing or condensing.

Electric tankless water heaters heat the water using an electrical element as the water passes over it inside the unit—rather than using a heat exchanger.

Electrical systems like this are generally more expensive than gas water heaters, but they are more cost-effective to install.

Note: Pete the Plumber does not sell electric tankless water heaters.

Most Alberta homes choose whole-home water heaters, but another option is to install a point-of-use tankless water heater. These are attached to a single faucet or appliance (like a shower) and designed to heat the water there—and only there.

Compared to their traditional tank-storage cousins, modern tankless water heaters have some definite advantages and disadvantages. Here are the main pros and cons we have discovered for Calgary homeowners:

• Space-efficient: tankless water heaters require much less space than water heaters with tanks.
• Only heat water as needed: tankless systems heat water as needed rather than continually heating an entire tank of water.
• Energy-efficiency: modern tankless water heaters are more energy-efficient as the technology has improved and they only heat water as needed, saving you money every month.
• Limitless hot water usage: the tankless model will heat water on-demand and deliver to any faucet while a tank system only produces a volume of hot water according to the size of the tank. No more cold showers!
• Durability: Tankless water heaters last for up to 20 years before needing replacement (the average tank-style water heater lasts around 10-12 years).
• Low maintenance costs: tankless water heaters are generally easier to maintain than systems with tanks.

• Higher purchase and installation costs: generally, the costs of purchasing and installing a new tankless water heater are at least double those of a tank-style heater.
• Flow rate limitations: some cheaper tankless water heaters may provide flow rates that are too low for your home, reducing the temperature of the hot water available.
• Multiple units may be required: larger homes with a high number of occupants may require more than one unit to keep the whole family happy or a very high-end system, which increases the upfront costs.

When considering the overall costs involved with a tankless water heater in Alberta, we need to factor in installation costs as well as the initial purchase price of the unit and the costs of the fuel used to run it.

First, considering the upfront purchase costs of a tankless water heater in Alberta, you will need to budget $2,000 to $6,000 for a high-quality, high-efficiency unit. With installation, that is closer to $3,000 to $7,000 or more in some instances. Prices vary largely depending on the make, size, type, model, and energy efficiency.

Let us take a quick look at the main factors affecting the costs of a tankless water heater:

• Unit type: Is it a whole-house unit (more expensive) or a single point-of-use unit?
• Flow rate: Most average-sized homes in Alberta need a flow rate of 10-11 GPM to comfortably manage hot water needs.
• Unit size: Most average-sized homes require 160,000-180,000 BTU units.
• Efficiency rating: The higher the rating, the better the efficiency, and the lower your monthly bills—but efficiency usually comes at a price (though you may qualify for a federal rebate).
• Gas or electric configuration: Is it a natural gas or electric model? If so, will the current gas/electric configuration in your home require major amendments?
• Warranty: Does your model have a five-year chamber and one-year parts warranty as per usual? Note that extended warranties may be available too.

The costs of a tankless water heater may also vary by brand. It is best to discuss your options with a professional plumber before deciding on the best tankless water heater.

Tankless water heaters are a smart choice for many Calgary households—but they’re not the ideal solution for everyone. The right fit depends on your home’s water usage, layout, and energy goals.

If your family frequently runs multiple showers, laundry, and dishwashers at once, you’ll want to ensure the unit you choose has a high enough flow rate (measured in gallons per minute) to keep up. In Calgary’s colder climate, groundwater temperatures can also impact performance—so choosing a properly sized unit is crucial for consistent hot water delivery.

Tankless systems work exceptionally well in modern, energy-efficient homes or for homeowners looking to reduce utility costs over time. They’re also ideal for smaller homes, condos, and secondary suites where space is limited.

Pete the Plumber can assess your household’s water demand and recommend the right size and model to meet your needs, ensuring your investment in a tankless heater delivers long-term comfort and value.

Tankless water heaters are gaining popularity across Calgary and Alberta thanks to their energy efficiency, compact design, and convenience. Unlike traditional tanks that constantly heat a reserve of water, tankless systems only heat water when it’s needed—leading to noticeable energy savings over time.

Homeowners also appreciate the near-endless supply of hot water. With a properly sized system, you’ll never run out of hot water in the middle of a shower again. These systems take up less space, last longer (up to 20 years or more with proper maintenance), and reduce the risk of tank leaks and water damage.

Government rebates and incentives in Alberta have also encouraged many households to make the switch—especially those focused on reducing their carbon footprint and lowering monthly energy bills.

With expert installation and support from Pete the Plumber, switching to tankless water heating can be a smart, future-ready upgrade for your home.

At Pete the Plumber, we are committed to helping homeowners make informed decisions regarding their heating systems.

Our experienced technicians can assess your furnace’s condition, discuss your options, and provide personalized recommendations tailored to your specific needs and budget.

Do not wait until the freezing temperatures arrive—contact us today for a thorough evaluation and expert advice on whether to repair or replace your furnace, ensuring your home remains a cozy sanctuary throughout the winter season.