Heat Pump Water Heater vs Tankless Water Heaters

In most buildings and homes, these two systems are the most common in use. The main reason for this, they are very convenient to apply. If you are curious about the heat pump water heater vs tankless water heaters, you are at the right spot. It will be very easy to decide between these two general systems.

What is Heat Pump Water Heater System?

Heat Pump Water Heater vs Tankless Water Heaters
Tankless water heater system. Image Source: Homedepot.com.

First of all, we need to understand the general working principles of these two common applications. A heat pump water heater is an electric system that works like a refrigerator. There are internal components in them to use the heat inside the ambient air to heat the water inside the tank.

You know that refrigerators take the heat inside them and expel it to the ambient air. The heat pump water heater systems are making it reverse. There is a tank that water located inside, and the heat pump water heaters take the heat of the ambient air to heat the water inside the tank. This is their general working principle of them.

What is the Difference Between Tankless Water Heaters?

The main difference between the tankless water heaters from the heat pump water systems, they have a very basic tankless heater system that there are internal tubings. And the water comes from the grid and circulates this grid. And there is a natural gas or fuel inlet that ignites the fuel inside the heater. The water circulates inside the tubing systems heated.

Also there is a recirculation pump that circulates the heated water through the piping system of your home to provide hot water to all the systems that are available in your home.

As you understand that these are very different systems in general.
But do not forget that they have different advantages and disadvantages in certain conditions and parameters.

Heat Pump Water Heater vs Tankless Water Heater

As you understand that there are certain differences in these applications. According to the different circumstances and parameters, they have different advantages. Here, we compare these two systems and it will be very easy to choose the best application for yourself.


This is a very important parameter to consider in general. Because the efficiency of these systems is generally very important. With the increasing efficiency, the total bills will be much lower.

In terms of efficiency, the winner of the round is the heat pump water heater applications. Especially in warmer climates, they are using ambient heat to heat the water inside the container. But gasoline or gas systems like tankless water heater systems are lower in terms of efficiency if we compare them with electricity applications.

In most cases, the electricity applications are generally higher in efficiency if we compare them with the gasoline applications. Igniting and burning gasoline may produce lots of true energy. But in terms of the usable energy of these gasoline applications, they are not high.


Also, lots of the users are considerate of the environment. The carbon footprint is a very important consideration for governments and the people. If you are environmentally friendly like us, you can consider hybrid systems that have heat pump heating applications. Because electrical systems are much more efficient.

And also you can find tax incentives for the installation and the products for these applications in specific states. They are the incentives that promote people to use more efficient applications in their homes.
For example, you can save up to 30% savings with government incentives in general by using these applications.

Noise Levels

Heat pump water heater
Heat pump water heater. Image Source: iStock.

The sound of the working system is also very important. It is a very important parameter of comfort. You probably do not want noisy applications in your home.

Every time, the electrical systems are better in terms of noise. Because there is no burning of gasoline or oil to produce lots of noise. So in this debate, the winner of the round is heat pump applications.

The tankless water heater applications can produce some sound levels that may be disturbing for you. So, in this case, you can consider buying a heat pump water heater application.


In general, both systems have a good amount of lifespan. You can use heat pump water heater systems for 10-15 years if you bought from a high-quality brand. And also you can use a tankless water heater application for 15-20 years without any problem.

The important point here is, you need to consider buying from a known brand. And you need to be sure about the quality of the brand. You can check the general customer reviews on the internet to be sure about the general quality of your product.


This is another important consideration that we can make in general. If the space that the system takes is very important. Even if you have a problem with the space, you should consider the smaller applications.
Without hesitation, the winner of this round is the tankless water heater. They are very basic systems that you can attach to a wall. And you just need to attach the general inlet hoses to it. It is a small box where water circulates inside it.

But the heat pump water heater applications are generally bigger. Because they have a tank where you store the water inside it. This makes them bulky and problematic in terms of space.

If you are considerate about the space, selecting a tankless water heater is a very good selection in general.

Hot Water Supply

Yes, these two systems are very good applications in terms of the water supply. But the main advantage of tankless water heaters is to provide hot water directly you open the faucet. And this is a very useful application that you can consider.

But you need to wait a certain time for hot water if you open the faucet for the heat pump water heater systems. Because the water inside the container is not generally hot. And the water in the pipes is generally cold. You need to wait for a while to get hot water.

In general, this is the most important parameter why tankless water heater applications are very common.


Maintenance costs are also a very important thing to consider in general. Because al the subsystems have specific lifespans. And if a system becomes more and more complex, the maintenance costs will very very high.

And the tankless water heater systems are much more basic systems if we compare them with the heat pump water heater applications. In heat pump water heaters, there are lots of complex parts and plots of applications that you need to work with.

So, in terms of maintenance, the price of maintenance is way higher for heat pump water heater applications.

Heat Stability

In terms of the stability of the heat of water, the heat pump water heater applications are generally better. Because there is a full tank that provides the same temperature of the water. But for tankless water heater applications, heat stability can be a problematic issue in general.

Inıtial Costs

Also, the installation and initial costs, the more complex systems have much higher prices. We know that heat pump water heater applications have much higher initial costs because of their general complexities. The water heater system itself is generally higher in price.

So, if you war looking for a basic system, you can consider the tankless water heater application to build for your home.

These are the general titles that we can make a comparison between these two important applications. And choosing the right one completely depends on you.

If you have a limited budget, considering tankless heaters can be very useful for you. But if you are considerate about efficiency and the environment, choosing the heat pump water heater applications will be very useful for you.

Last Words on Heat Pump Water Heater vs Tankless Water Heater

This is one of the most basic comparisons between these systems. If you want to decide to install one of them, making comparisons on these parameters will bring you the best application. But first, you need to define the most important parameters for yourself. And choosing the best application will be very easy for you.

If you have additional comments and questions about the heat pump water heater and tankless water heater applications, leave them below. Your precious feedbacks are very important to us.

Also, you can check the other contents about HVAC;

Refrigerated Air – What is That? Advantages, Disadvantages

T Type Thermocouple Guide – Features, Uses and Advantages

40 Gal Pressure Tank – Will It Be Sufficient?

Turning Vanes in HVAC Applications

Cryogenic Gloves – Best Products to Consider!

Tankless Water Heater Recirculation Pump – General Overview

Uğur Uygun

Hello everyone, I am Uğur. I am a mechanical engineer who has experience in different R&D departments of HVAC companies. With my best friend, I decided to build this website to share out knowledge and experience. And also, I am interested in automotive. So, I am writing about automotive and automotive-related articles here. Sharing my knowledge and experiences on these topics is a very big pleasure for me. I am willing to answer all of the questions people have about these topics.

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