Water Heater Guide: Tankless vs Water Tank

Thinking about a new water heater? Here’s how a condensing tankless water heater (on-demand) compares to a traditional water tank—and why more Alberta homeowners are upgrading.
Condensing tankless water heater – on demand water heater
Condensing Tankless (On-Demand)
Conventional storage water tank heater
Conventional Storage Tank
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Endless Hot Water

Tankless heats on demand. No “running out” or recovery time.

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Lower Standby Loss

Condensing units waste less energy than tanks that constantly re-heat.

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Space Saving

Wall-hung tankless frees up floor area vs. bulky water tanks.

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Longer-Term Value

Stainless heat exchangers and longer warranties on premium models.


Why Choose a Condensing Tankless Water Heater

Condensing tankless water heaters (also called on demand water heaters) heat water only when you open a tap. High-efficiency condensing technology extracts extra heat from exhaust, improving efficiency and lowering fuel use.

Comfort & Performance

  • Continuous hot water for showers, laundry, and dishes.
  • Smart recirculation options to reduce wait times at distant taps.
  • Right-sized output with high turndown ratios for stable temperatures.

Efficiency & Savings

  • Reduced standby losses vs. tanks that constantly re-heat.
  • Condensing design captures more heat from exhaust.
  • Eligible for future utility incentives when available (varies by program).

Reliability & Warranty

  • Stainless-steel heat exchangers on premium models.
  • Longer parts/heat-exchanger warranties vs. standard tanks.
  • Compact, wall-hung design with serviceable components.

See example specs on our Navien tankless water heater page.


Where Traditional Water Tanks Fall Short

Storage water tanks heat and re-heat a fixed volume of water all day, whether you need it or not. That design is simple—but it leads to wasted energy and running out of hot water at peak times.
  • Finite supply: Once the tank is empty, you wait for recovery.
  • Standby losses: Energy is burned keeping stored water hot 24/7.
  • Footprint: Takes floor space and can limit layout options.
  • Wear items: Tanks often rely on sacrificial anode rods and can be prone to tank corrosion or leaks as they age.

Tankless vs Water Tank — Side-by-Side

Feature Condensing Tankless Storage Tank
Hot Water Supply Continuous (on demand) Finite; recovery time required
Energy Use Lower standby loss; high efficiency Standby losses re-heating stored water
Space Wall-hung; frees floor space Bulky tank on floor
Comfort Stable temps; smart recirc options Temps drop under heavy use
Longevity & Warranty Stainless exchangers; longer coverage on premium models Tank corrosion/leak risk as unit ages
Best For Households wanting efficiency, endless hot water, and space savings Lowest upfront cost or very small usage profiles
Want the nuts-and-bolts? Check model details on our Navien tankless water heater page.

See Your Potential Savings

Use our HVAC Energy Savings Calculator to estimate utility savings, compare systems, and see how a tankless upgrade could pay back over time.


Ready for Endless Hot Water?

We’ll size the right condensing tankless, confirm venting and recirculation, and provide a clear fixed-price proposal.

Serving Calgary, Okotoks, and Diamond Valley.

Discover the Valley Heating Difference – Total Peace of Mind.

Contact Us

(403) 775 6423
contact@valleyheating.ca
203 Regent Road SW, Turner Valley, AB T0L 2A0
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(403) 775 6423