Tankless Coil and indirect water heaters use your home’s space heating system to heat water, which is why they are known as integrated, or combination water and space heating systems. But before you go jumping at the chance to buy these cool contraptions, you should learn a little more about them. This article from the U.S. Department of Energy explains the ins and outs of tankless coil and indirect water heaters.
A tankless coil water heater uses a heating coil or heat exchanger installed in a main furnace or boiler. When the water is turned on, water flows through the heat exchanger, providing hot water on demand without a tank. But since these water heaters rely on a furnace or boiler, they operate best during the cold months when the system is heating regularly. So these water heaters do not make sense for homes in warmer climates.
For these residences, indirect water heaters may be the way to go. These water heaters DO require a storage tank, but still use the main furnace to heat a fluid that is circulated through the heat exchanger in the storage tank. And since the tank stores energy, it will require your furnace to turn on and off less often, saving energy and money.
Indirect water heaters, when coupled with a high-efficiency furnace, are often the cheapest way to effectively heat your water. But you will need to do your research to determine what type of water heater makes the most fiscal sense for you.
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