Top

The Differences Between Traditional and Tankless Water Heaters in MN

|

The Differences Between Traditional and Tankless Water Heaters in MN

When it’s time to install a new water heater in your home, you’ll have no shortage of options. At Neighborhood Plumbing & heating, our professional Minnesota plumbers can help you determine which model of water heater would be best form your home when we provide you with an installation or replacement. We can also help you decide between the two main categories of water heaters: traditional and tankless.

There are pros and cons to both of these types of water heaters, and in the end, the best decision will depend on your home and your preferences. The best way to begin making a decision is to understand the differences between tankless water heaters and traditional water heaters.

Traditional vs. Tankless

  • traditional water heater works by storing about 30-50 gallons of water in a tank and keeping it heated at all times. That preheated water is used anytime someone showers, does laundry, washes dishes, or uses hot water for anything else in your St. Cloud home. After the water has been emptied from the tank, it refills and begins heating again.
  • tankless water heater, on the other hand, uses either an electric or gas heat source to heat cool water on-demand when you’re ready to use it. Tankless water heaters are also referred to as on-demand water heaters.

Pros and Cons of Traditional Water Heaters

  • Pros:
  • Lower initial cost. Traditional water heaters can be purchased and installed for as little as half of the price of installing new tankless water heaters in your St. Cloud home.
  • Relatively inexpensive to replace. Fewer installation complications means there’s less that can go wrong and a low cost of labor when it’s time to replace your water heater.
  • Cons:
  • Higher utility costs.
  • They occupy more space.
  • Will run out of hot water.
  • Shoter life span. Traditional water heaters typically last for 10-15 years before they need to be replaced.

Pros and Cons of Tankless Water Heaters

Pros

  • Save money in the long run. Although the initial costs of installation may be higher, tankless water heaters can be 24-34% more energy efficient that traditional storage tank water heaters, which saves you a significant amount of money on your St. Cloud home’s utility costs.
  • Lasts longer. Tankless water heaters can last for twenty years or longer.
  • Delivers hot water whenever you need it. Because water is heated on-demand, it never runs out.

Cons:

  • Higher initial costs.
  • Retrofitting can add to upfront cost. Replacing a traditional water heater with a tankless system is more complicated, and that may increase the initial cost.

Share This Post

Foley Office

130 Broadway Ave N
Foley, MN 56329
(320) 500-6073

Sauk Rapids Office

1060 35th Ave NE
Sauk Rapids, MN 56379
(320) 500-6073

Chisago City Office

10750 South Ave
Chisago City, MN 55013
(320) 500-6073

Subscribe to Our Newsletter

© 2026 Neighborhood Plumbing, Heating, Air Conditioning and Electrical Plumbing. All Rights Reserved. | Sitemap | Privacy Policy

Labor Day Sale! Buy a Furnace Get an A/C FREE, $1000 Off New Tankless Water Heater

We’ve Got You Covered

Special Offers from Your Neighborhood Home Experts

From seasonal tune-ups to limited-time savings, these specials are our way of helping take care of the homes in our neighborhood.

  • Neighborhood Home Services
    Buy 3 Get 1 Free Smart Water Shutoff & Leak-Detection Equipment

    Install next to any questionable or problem areas and have the alerts sent right to your phone! Financing Available & Free Estimates!

    Valid Jul 1, 2026 - Sep 30, 2026
  • Neighborhood Home Services
    Free Year of Salt! With the purchase & install of ANY Water Softener

    One Year includes up to 12 bags of Salt Delivered Quarterly. Financing Available. Free Estimates!

    Valid Jul 1, 2026 - Sep 30, 2026
  • Neighborhood Home Services
    FREE Water Test Included with every Plumbing Service Appointment

    Know your water. Protect your home. Hard water can leave buildup, spots, dry skin, and extra wear on your plumbing and appliances. A quick test helps you know what’s coming through your pipes.

    Valid Jul 1, 2026 - Sep 30, 2026
  • Neighborhood Home Services
    0% Financing Up To 60 Months*

    Lennox Whole Home Heating & Cooling Systems!

    Valid Jul 6, 2026 - Aug 14, 2026
  • Neighborhood Home Services
    15% OFF Outdoor Water Faucet

    Save 15% on purchase & installation. Free Estimates. Financing Available.

    Valid Jul 1, 2026 - Sep 30, 2026
  • Neighborhood Home Services
    Build your Smart Home! Choose 3 or more devices to save 10%

    Choose 3 or more Smart Home devices and save 10% on the whole purchase and installation. Pick from any new Resideo Home Automation Devices. Free Estimates or Assessments.

    Valid Jul 1, 2026 - Sep 30, 2026