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Yes, although they have a higher upfront cost compared to traditional units, tankless water heaters can be worth the investment for many homeowners. They heat water on demand, eliminating standby energy losses and leading to 24% to 34% greater energy efficiency for homes using up to 41 gallons of hot water daily. Tankless units last longer—around 20 years with proper maintenance—and require less space than traditional units. They also reduce the risk of leaks and water damage since there's no tank to corrode and fail.

Tankless water heaters, including gas-powered models, do require electricity to operate components like the ignition and control systems. This means they won't function during a power outage. If you live in an area prone to outages and want to ensure a continuous hot water supply, consider installing a battery backup system or generator to keep your tankless water heater running when the power goes out.

You should set your tankless water heater to 120 degrees Fahrenheit for optimal safety and efficiency, as recommended by the U.S. Consumer Product Safety Commission. Setting the temperature at 120 degrees prevents scalding accidents, particularly for children and the elderly, and reduces energy consumption. Temperatures above 140 degrees increase the risk of burns and promote mineral buildup, which can decrease the system's efficiency.

A 20-minute shower uses 50 to 60 gallons of water, assuming a flow rate of 2.5 to 3 gallons per minute. A typical whole-house tankless water heater can produce 4 to 8 gallons of hot water per minute, providing continuous hot water for long showers. By installing low-flow showerheads and reducing shower time, you decrease water consumption and energy costs, maximizing the efficiency of your tankless system.

With proper maintenance, a tankless water heater lasts around 20 years, significantly longer than conventional tank water heaters, which last between 8 and 12 years. Regular inspections and timely repairs can further extend its lifespan. To keep your tankless system operating efficiently, have it inspected or serviced annually and address any minor issues promptly by contacting a local tankless water heater repair service.