Why You Should Consider a Tankless Water Heater in 2025

Most homeowners don’t think about hot water until they lose it.

That jolt of cold mid-shower. The tepid sink water while trying to scrub a pan. The third person in the house sighing after realizing they’ll need to wait half an hour for the tank to refill. If any of this feels familiar, you’re not alone, and you’re probably overdue for a better solution.

2025 is a turning point for home upgrades. Energy costs are climbing, efficiency standards are tightening, and old systems are being pushed to their limits. Which is exactly why so many people are ditching bulky, aging hot water tanks and making the switch to a tankless water heater.

Here’s everything you need to know, minus the marketing fluff, about how tankless systems work, what they save you, and why now is the right time to get serious about the upgrade.

What Is a Tankless Water Heater, Really?

A tankless water heater (also called an on-demand water heater) does exactly what the name suggests: it heats water when you need it, rather than storing gallons of it 24/7.

Think of it like the difference between a drip coffee pot and an espresso machine. One sits there, always hot, always using energy. The other waits until you hit the button, then delivers exactly what you need.

Instead of keeping a huge tank full of hot water, tankless units flash-heat water as it flows through. That means:

• No standby heat loss (energy wasted keeping a tank warm)
• Continuous hot water whenever you need it
• Smaller footprint, since these units mount on the wall and take up minimal space

It’s a simple switch, but the implications for your comfort, water conservation, and monthly bills are significant.

Why 2025 Is the Year to Rethink Your Water Heating System

Let’s be honest: most homes in the GTA still run on traditional tank systems. That’s not inherently bad, but it’s becoming outdated, especially now.

Key factors in 2025:

• Energy rates have jumped again, making inefficiencies harder to ignore
• Home renos are booming, and utility upgrades are a top resale feature
• Incentives are shifting toward conservation-first systems, including tankless units in some rebate programs
• Appliance space is at a premium, especially in condos and small urban homes

Concerns about cost or installation hurdles are becoming less of a barrier, and the advantages are getting harder to overlook.

Real-World Energy Savings with a Tankless Water Heater

A traditional tank-style heater keeps water hot 24/7, even when you’re not home. That “standby loss” is one of the most energy-wasting aspects of any home system.

Tankless systems only fire up when hot water is needed. That means:

• 15–35% less energy usage compared to storage tanks
• Up to $100+ in annual energy savings for average households
• Even greater returns in homes with frequent hot water use or larger families

Energy efficiency isn’t just about bills; it’s also about performance. Tankless systems don’t run out of hot water because they’re not relying on a limited supply.

That matters when you’ve got back-to-back showers, laundry loads, and a dishwasher running at the same time. Especially during cold Canadian winters when every bit of heat counts.

Water Conservation Without Sacrificing Comfort

There’s a myth that water conservation means “doing less.” But smart upgrades like tankless water heaters challenge that idea.

You’ll end up using less water overall because you’re not waiting as long for it to heat up. With a tank-based system, cold water has to clear before hot water arrives. That’s wasted litres, especially in larger homes with long plumbing runs.

With a properly installed tankless unit:

• Hot water arrives faster
• No need to run the tap longer than necessary
• Daily water waste is reduced

If you’re aiming for sustainable home upgrades, this is one change that combines conservation with convenience.

What to Consider Before Making the Switch

Tankless isn’t a one-size-fits-all solution, and it’s important to know what to expect.

Important considerations:

• Initial installation costs are higher than standard tank systems
• You may need an upgraded gas line or electrical panel, depending on your home
• Lower-end models may struggle during peak demand
• Correct sizing is crucial: too small and performance suffers; too large and it’s inefficient

Most of these are one-time considerations. With the right unit and professional installation, a tankless system becomes a quiet, efficient, and reliable part of your home.

Over its lifespan, which is typically more than 20 years with proper maintenance, it generally pays for itself through energy savings.

Does a Tankless Water Heater Make Sense for Your Home?

If your hot water tank is more than eight years old or your home is ready for upgrades, it’s time to consider tankless.

It’s especially worth it if:

• Multiple people use hot water throughout the day
• Energy bills have crept up recently
• You’re remodelling or optimizing space
• You’re thinking about resale value or long-term efficiency

Tankless systems aren’t new. They’ve simply improved significantly. Today’s models are reliable, refined, and better suited to most homes in Toronto and surrounding areas.

Upgrade Your Water Heating System with Brothers Plumbing

We’re not here to upsell you on a system that doesn’t make sense. But if your current water heater is outdated or you’re tired of running out of hot water, it might be time to explore the benefits of tankless.

At Brothers Plumbing, we’ve helped Toronto homeowners upgrade their water heating systems for decades. We’ll assess your setup, recommend the right tankless water heater for your needs, and install it properly.

Whether you’re planning a renovation or just looking to reduce energy costs, our team can help you make a confident, future-focused decision. Call Brother’s Plumbing at 647-247-2230 or click here to get in touch online.