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Storage Tank Water Heaters vs. Tankless Water Heaters
Posted: April 13, 2026

Break down the differences with Fredericks Fuel

water heater Vernon, NJWe probably do not need to remind you that a water heater is an extremely important part of your home here in Northern New Jersey. After all, without this piece of equipment tasks such as showering, washing your hands, doing laundry and doing dishes would be quite uncomfortable, if not impossible. This is part of why it is so important to take the time to figure out what type of water heater will work best for your needs and your home before you pull the trigger on purchasing one.

There are four main types of water heaters that homeowner can choose from. There are storage-tank water heaters, tankless water heaters, heat pump water heaters and solar thermal systems.

Today Fredericks Fuel is going to do an in depth comparison between storage tank water heaters and tankless water heaters.

How does a storage tank water heater work?

Storage tank water heaters hold and store a certain amount of heated water (typically between about 20 and 80 gallons) in a reservoir. When the hot water tap in a home is opened, this warm water is then released from the top of the tank and distributed to whatever faucet has requested hot water. As the water supply dwindles, a storage tank water heater starts heating up additional water so that there is constantly hot water available and ready.

How does a tankless water heater work?

A tankless water heater only heats water on demand as opposed to storing it the way a storage tank water heater does. This equipment uses high-powered burners to heat water up at a fast speed when it is needed somewhere within a home.

What are the benefits of a storage tank water heater?

Some home and business owners prefer a storage tank water heater because they typically have relatively low upfront costs and are considered to be a little more wallet-friendly in terms of purchasing costs. They also usually do not require much when it comes to maintenance and repairs.

What are the benefits of a tankless water heater?

When it comes to efficiency, tankless water heaters lead the way. In fact, the U.S. Department of Energy estimates that tankless water heaters can be up to 34% more efficient than their competitors. They are also able to provide an endless supply of hot water to a home or commercial space.

Tankless water heaters can feel like a big financial investment since they have high upfront costs, but they do help home and business owners save money in the long run since they are so efficient, have long life spans and save resources by eliminating standby heat losses.

Tankless water heaters are also typically smaller and more compact than tank water heaters are, which helps save homeowners space.

Come to Fredericks Fuel for your water heater

Whether you are looking for a tank water heater or a tankless water heater for your home here in Northern New Jersey, Fredericks Fuel can help. We install top quality, high-efficiency heaters all throughout the area.

Contact Fredericks Fuel today to learn more about the water heater services we offer.