Alberta Energy Efficiency Program.

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Tankless Hot Water System



Tankless hot water systems take up less space, waste less energy and may even provide hot water faster than conventional systems. Domestic hot water upgrades to ENERGY STAR® tankless systems present a tremendous energy-saving opportunity over older, storage tank systems, especially those equipped with standing pilot lights.

Rebates of up to $1000 are available for the installation of a new tankless hot water heater. The following examples provide minimum estimates of how much money you can expect to get back in rebates

Fuel TypeExisting Tank TypeMin Rebate  
Natural Gas Conventional $585.84  
  Conventional (Standing Pilot) $944.76 most common
  Induced Draft $534.38  
  Induced Draft (Standing Pilot) $893.30  

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What are the advantages?

Conserve Energy

Tankless water heating units operate only when there is a demand for hot water. This will reduce energy costs by as much as 35% a year. It is also extremely energy efficient. According to Energy Star, some units have energy factors that are as high as 95

Avoid Down Time

If the unit is sized properly, it can effortlessly deliver a continuous supply of water at preset temperature levels. This could be as much as 5 to 7 gallons of hot water per minute. They simply never run out of water.

Save on Space

Compact size which takes less space than conventional ones take and versatility, which means tankless water heaters can be fixed anywhere in the house.

Other Advantages

Other advantages include longer life expectancy of as much as 20 years.

Another area in which an on demand water heater scores high is safety. Their safety is due to the fact that they only operate when warm water is required. This really is unlike the storage type units which are almost permanently on.

How to get the right size

You can determine your household capacity by calculating how much water you need at any time. Use the chart below to calculate the gallons per minute (GPM) of hot water each of your fixtures and appliances needs, and add up these amounts to get a total GPM for your household. For example, if you typically have one shower running, plus a dishwasher, and a washing machine, you have a flow rate of 3.5 – 7.5 GPM.

Fixture/ApplianceTypical Water Flow
Bathroom Faucet 0.5 – 1.5 GPM
Kitchen Faucet 3.0 – 7.0 GPM
Shower 1.0 – 2.0 GPM
Dishwasher 1.0 – 2.5 GPM
Clothes Washer 1.5 – 3.0 GPM

Once you understand the demands and expectations, you’ll have a better idea of which one to choose.

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