Tank vs Tankless Water Heater in Orlando, FL: Which Is Better? (2025)

A standard tank water heater costs $700–$1,500 installed in Orlando. A tankless unit runs $1,500–$3,500 installed — roughly 2–3x more upfront.

But tank water heaters last only 8–12 years in Florida's hard water conditions. Tankless units last 20–25 years. Over a 20-year period, you'd replace a tank unit twice at a total cost of $1,400–$3,000 — potentially more than a single tankless installation.

Add in energy savings of 20–30% on water heating costs (typically $15–$30/month in Orlando) and the lifetime cost advantage of tankless becomes clear for homeowners planning to stay long-term.

Orlando's warm groundwater temperature (around 72°F year-round) is a significant advantage for tankless water heaters. Tankless units heat incoming water on demand — the warmer the incoming water, the less energy required and the higher the flow rate.

In cold climates, tankless units can struggle to keep up with high-demand situations (multiple showers running simultaneously). In Orlando's warm climate, this is rarely an issue — a properly sized tankless unit handles simultaneous demand easily.

Orlando's hard water can cause mineral buildup in tankless units. Annual descaling maintenance is important to maintain efficiency and extend lifespan.

A traditional tank water heater is the right choice when: you need an immediate replacement and budget is the primary concern, you're selling the home within a few years and won't recoup the tankless premium, or your home has limited gas pressure or electrical capacity for a tankless unit.

For rental properties, tank water heaters are often the more practical choice — lower upfront cost, simpler maintenance, and easier replacement when needed.

Gas tankless water heaters require a larger gas line than tank units — typically 3/4" vs 1/2". If your home has an undersized gas line, upgrading it adds $300–$800 to the installation cost.

Electric tankless units require a dedicated 240V circuit with significant amperage (typically 150–200 amps for whole-home units). This may require a panel upgrade in older Orlando homes.

A plumbing permit is required in Orange County for water heater replacement — both tank and tankless. Your plumber must pull the permit and schedule an inspection.