Pros and Cons of Point-of-Use Water Heaters

pros and cons of point of use water heaters

Have you ever hopped into the shower, anticipating a toasty flow, only to cop an icy shock instead of that comforting warm wash you’d been looking forward to? It’s enough to make anyone mutter a few choice words under their breath.

Let’s face it, during those crisp mornings when the air’s so cold it nips at your nose, traditional water heaters can leave us feeling more than a bit miffed – and thoroughly frozen.

But don’t lose heart! There is indeed a glimmer of hope in the endless battle against those shivery starts. In our quest for cosiness without compromise, we’ve stumbled upon point-of-use water heaters – these clever little units promise on-demand hot water exactly where you need it most.

Considering that in 2021 Aussie households copped nearly a 3% jump in electricity bills*, energy-efficient alternatives are not just nice-to-haves but need-to-haves!

So in this yarn, we’re going to take you through the ins and outs of saving dosh on your bills while also sparing precious space with point-of-use heaters. We’ll suss out if these compact dynamos are truly the silver bullet for banishing those bone-chilling splashes once and for all.

So whack on your comfiest slippers and let’s get ready to crank up the warmth.

Key Takeaways

  • Point-of-use water heaters provide instant hot water and save space. They are energy efficient and can help lower your bills.
  • These heaters might cost more at the start and need a plumber to put them in. If you use a lot of hot water at once, they may not work as well.
  • Think about how much hot water you use, where you can put the heater, what kind it should be, how much money you have, and how long it will last before choosing one.

Types of Water Heaters

When it comes to water heaters, there are several types to consider. From the traditional storage-tank water heaters to the more modern tankless and heat pump water heaters,

each type has its own set of benefits and drawbacks.

Storage-Tank Water Heaters

We often see storage-tank water heaters in homes across Australia. These tried-and-true heaters come with a tank that keeps

types of water heaters

water hot and ready to use. They work by heating up a reservoir of water, which means you’ve got hot water when you turn on the tap.

Storage tanks can run on electricity or gas, depending on what’s available in your area.

These tanks are great if you need large amounts of hot water over a short period. Let’s say everyone wants to shower in the morning; this system won’t disappoint. But they do keep heating and reheating the same water, even if no one is using it.

This can add to energy bills since it’s not as energy-efficient as other options out there. Still, many choose them for their reliability and straightforward installation process.

Tankless Water Heaters

Tankless water heaters are compact and save space. They provide hot water instantly, saving energy and money. These heaters are energy efficient and offer a continuous supply of hot water for your household needs.

However, they may have higher upfront costs and could lead to limited hot water flow from multiple outlets in larger homes.

Considering the benefits and drawbacks of tankless water heaters is crucial when choosing an efficient heating option for your home. The decision should be based on your hot water demand, available space, fuel sources, and budget constraints to ensure long-term satisfaction with your choice.

Heat Pump Water Heaters

Heat pump water heaters are energy-efficient options for homeowners. They work by transferring heat from the air to water, making them an environmentally friendly choice. These systems can save money in the long run, despite higher upfront costs.

They also tend to have a longer lifespan compared to traditional electric or gas water heaters, providing a reliable hot water supply over time.

These units are suitable for homes with moderate hot water usage and access to space with sufficient ventilation. Their efficiency benefits both the environment and your wallet – a win-win situation for any homeowner considering their options.

Solar Powered Water Heaters

Solar powered water heaters use the sun’s energy to heat water for your home. They are environmentally friendly and can help lower your electricity bills in the long run. By harnessing solar power, these water heaters provide a sustainable and cost-effective way to have hot water on demand.

Installing a solar powered water heater requires an initial investment but can result in significant savings over time. It’s important to consider factors such as your location, available sunlight, and local regulations before opting for this eco-friendly option.

When properly installed and maintained, solar powered water heaters can be a reliable and energy-efficient choice for heating your household’s water supply.

Condensing Water Heaters

Transitioning from solar powered water heaters, let’s discuss condensing water heaters. These units are highly efficient as they capture and use heat that would otherwise be lost in traditional models.

Condensing water heaters utilise the heat from exhaust gases to preheat cold water entering the unit, leading to reduced energy consumption and lower operating costs. With their energy-saving features and environmentally friendly operation, condensing water heaters are a worthwhile investment for homeowners seeking an efficient hot water solution.

Pros and Cons

When it comes to point-of-use water heaters, there are several pros and cons to consider. On the positive side, they are energy efficient, save money on utility bills, save space, and provide instant hot water. However, they have limitations in terms of providing hot water

pros and cons

to multiple outlets simultaneously, can be affected by power outages, come with higher upfront costs and require specific installation and maintenance considerations.


Point of use water heaters offer several benefits for home owners:

  1. They are energy efficient, helping to lower electricity bills and reduce environmental impact.
  2. Point-of-use water heaters save money by heating only the water needed, eliminating standby energy losses.
  3. These systems save space as they are compact and can be installed closer to the point of use, freeing up space in utility areas.
  4. Home owners can enjoy instant hot water without waiting for it to travel from a central heater, providing convenience and comfort.
  5. Installation is usually straightforward, requiring minimal disruption to existing plumbing systems.

Energy efficiency

Point-of-use water heaters are highly efficient, using energy only when hot water is needed. This means lower energy bills and reduced environmental impact. By eliminating standby heat loss that occurs with traditional tank water heaters, point-of-use water heaters offer significant energy savings.

Energy-efficient options like electric on-demand water heaters provide an environmentally friendly solution for homeowners looking to reduce their carbon footprint. These systems also offer the advantage of precise temperature control, ensuring that no excess energy is wasted heating water beyond the desired temperature.

Saves money

Saves money with a point-of-use water heater! Enjoy lower energy bills due to heating water only where you need it, avoiding the expense of constantly reheating water in a large tank.

This system efficiently delivers hot water when and where you need it, reducing wastage and ultimately saving you money on electricity or gas costs.

Installing a point-of-use water heater can be cost-effective in the long run because it eliminates heat loss through long pipes from a central heater, thereby reducing standby energy consumption.

Saves space

Point-of-use water heaters are a great solution for saving space in your home. These compact units can be installed closer to the point of use, eliminating the need for a large central tank.

This means you can reclaim valuable space that would have been occupied by a traditional water heater, giving you more room to move and store other items.

Installing a point-of-use water heater also means that you don’t have to worry about finding a dedicated spot for a bulky storage-tank unit. With its smaller size and flexible installation options, it’s easier to fit these water heaters into tight spaces such as under sinks or inside cabinets.

Instant hot water

Experience instant hot water with point-of-use water heaters. No more waiting for the water to heat up, saving time and energy. Enjoy the convenience of immediate hot water for your showers, baths, or kitchen use at any time.

Install a point-of-use water heater to receive heated water right when you need it. Avoid the frustration of cold starts and make your daily routine more seamless with this efficient system.


Point-of-use water heaters have limitations that homeowners should consider:

  1. Limited hot water supply for multiple outlets, which may not be sufficient for larger households or simultaneous hot water usage.
  2. Power outages can disrupt the functioning of point-of-use water heaters, leaving you without hot water until power is restored.
  3. Higher upfront costs compared to traditional water heaters, requiring a significant initial investment.
  4. Installation and maintenance may require professional assistance, adding to the overall expense and inconvenience.

Limited hot water for multiple outlets

When considering point-of-use water heaters, it’s essential to be aware of the potential limitation of providing hot water to multiple outlets simultaneously. This means that if you have a high demand for hot water in different locations at the same time, such as running showers and appliances concurrently, a point-of-use system may struggle to meet these demands effectively.

It’s important to assess your household’s hot water usage patterns and consider whether a single point-of-use water heater can adequately support your needs or if a whole-house system may better suit your requirements.

It’s crucial to weigh the benefits of space-saving and energy efficiency against the potential inconvenience of limited simultaneous hot water availability in decision-making.

Power outages

Considering the drawbacks, it’s essential to note that point-of-use water heaters are susceptible to power outages. During such events, there is no electricity to heat the water, resulting in no hot water supply until power is restored.

This can be inconvenient and uncomfortable, especially during colder months or if you rely heavily on hot water for various activities like cooking, cleaning, and personal hygiene.

To mitigate this issue when considering a point-of-use water heater installation, homeowners should consider having a backup power source such as a generator in place. It ensures uninterrupted access to hot water during unexpected power interruptions while maintaining the efficiency and convenience of a point-of-use system.

Higher upfront costs

When considering point-of-use water heaters, it’s important to note the higher upfront costs. Despite the initial investment, these units can be more energy-efficient and cost-effective in the long run, reducing your utility bills and providing significant savings over time.

It’s crucial to weigh this initial expense against the potential long-term benefits of lower energy consumption and decreased operating costs.

Installation of point-of-use water heaters may require a larger upfront investment compared to traditional whole-house systems; however, their space-saving design and energy efficiency make them a viable option for homeowners seeking long-term savings on their utility bills.

Installation and maintenance

Installing and maintaining point-of-use water heaters is relatively straightforward. A licensed plumber can install the unit efficiently, ensuring it meets local building codes and regulations.

Regular maintenance involves flushing the system to remove sediment buildup, checking for leaks, and inspecting the heating elements or burner assembly for optimal performance. It’s essential to follow manufacturer guidelines for upkeep to prolong the unit’s lifespan.

Additionally, scheduling yearly professional inspections can help identify potential issues early on and ensure that your point-of-use water heater continues to operate smoothly. Proper installation and regular maintenance are crucial in maximising the energy efficiency benefits and lifespan of your water heater.

Factors to Consider when Choosing a Point-of-Use Water Heater

Consider factors such as hot water demand, available space, fuel source, budget, and lifespan when choosing a point-of-use water heater. To learn more about making the best

choice for your home, keep reading!

Hot water demand

Consider your hot water demand when choosing a point-of-use water heater. Assess the number of hot water outlets and their simultaneous use to determine the size and capacity you need.

factors to consider when choosing a point of use water heater

This will ensure that your point-of-use water heater meets your household’s specific hot water needs without overloading it or causing disruptions.

Check the available space, energy efficiency, cost-saving benefits, and installation requirements for various types of point-of-use water heaters to make an informed decision.

Available space

When considering a point-of-use water heater, it’s crucial to assess the available space in your home. These compact units can be installed under sinks, in cabinets, or even on walls, making them ideal for homes with limited space.

It’s important to measure and identify the suitable location for installation based on the dimensions of the chosen unit. Ensuring adequate space will guarantee a proper fit and efficient operation of your point-of-use water heater.

Fuel source

Consider the fuel source for your point-of-use water heater. You may opt for an electric water heater if you prefer energy-efficient and cost-effective options. Alternatively, a gas-powered on-demand water heater provides instantaneous hot water but requires proper ventilation and maintenance.

It’s important to weigh the benefits of each fuel source to determine which aligns best with your budget, space availability, and hot water demand. Our choice will impact both installation costs and ongoing energy expenses.


Considering your budget is crucial when choosing a point-of-use water heater. The upfront costs for installation and the energy source will impact your budget; however, keep in mind the long-term savings from energy efficiency and lower utility bills.

Evaluate the cost-effectiveness of each type of water heater based on your specific hot water demand, available space, and hourly electricity rates to make an informed decision that aligns with your financial goals.


Point-of-use water heaters have varying lifespans, typically ranging from 10 to 15 years. The longevity depends on factors such as usage frequency, maintenance, and water quality. Regular maintenance, including flushing the system and checking for leaks or corrosion, can extend the lifespan of your point-of-use water heater.

It’s essential to consider these aspects when weighing the cost-benefit analysis of installing a new unit.

Considering proper care and maintenance, point-of-use water heaters can provide reliable hot water for many years without frequent replacements. However, if the unit is not properly maintained or if there are issues with installation or water quality, its lifespan may be shortened.

Share Your Queries about Point-of-Use Water Heaters with Us

Point-of-use water heaters offer energy efficiency and space-saving benefits. Their instant hot water feature ensures practicality and convenience for homeowners. Implementing these systems can lead to significant cost savings and improved environmental impact.

For further guidance on choosing the right type of water heater for your home, consult a professional plumber or energy expert. Make an informed decision that aligns with your household’s needs and priorities.