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Tankless Water Heaters vs. Traditional Water Heaters

As a heating contractor in Chicago, naturally, we field a lot of questions about water heaters. And one of the more common questions we get relates to the difference between tankless water heaters versus traditional water heaters. Since our technicians are well-versed and experienced working with both types of water heaters, we can help break this topic down better than just about anyone.

And it’s an important topic to understand, given the differences in quality, maintenance requirements, and cost. Other than the roof over your head, you might say your water heater is the most important component of your house. So let’s clear up any confusion about the comparison of tankless versus traditional water heaters.

Tankless and Traditional Water Heaters

At the risk of pointing out the obvious, the most notable difference between these two types of heaters is that one has a tank and the other doesn’t. This obvious fact is important for not-so-obvious reasons. For one, because tankless water heaters don’t use tanks, they must use an alternative method to heat your water. The mechanism they use is called a heating element, which is a component that heats up your water whenever, but only when, you turn on the hot water in your sink, shower, or dishwasher.

By using this mechanism, tankless water heaters can operate on-demand, giving them a level of efficiency that traditional water heaters generally can’t match.

Tankless: More Space and Lower Operating Costs

A tankless water heater is generally about the size of a briefcase, and it mounts on your wall. Practically speaking, it takes up zero square footage whereas a tankless water heater needs at least a few cubic feet of storage. Also, tankless water heaters generally result in lower utility bills than traditional water heaters since traditional heaters must always have a burning pilot light.

Traditional: Less Upfront Investment

Traditional water heaters cost less upfront than a tankless heater, but ask any heating contractor in Chicago, and you’ll learn that the operating costs more than make up for the additional upfront cost. Not only do they last a long time, but tankless water heaters are also more likely to be protected by a stronger warranty, which means you have less risk of needing to pay for costly repairs.

Need help choosing between tankless and traditional? Ask a heating contractor in Chicago at Deljo Heating, Cooling & Plumbing!

Client Testimonials

Read the opinions of our satisfied customers.

5 stars

This was my first time as a Deljo customer, and I was very pleased. My technician, Giovanni, was very thorough and diligent. He serviced my furnace and identified a faulty sensor that was causing the unit to shut itself down. Deljo ordered the part, and Giovanni replaced it a few days later. Overall, the team at Deljo was great. The dispatcher kept me informed about Giovanni’s arrival time, and the supervisor assisted Giovanni when he was diagnosing the problem with the furnace. I highly recommend Deljo.

Paul D. 10/15/2026

5 stars

I’ve used Deljo for over 10 years now and they always do a good job. Izzy was the technician for this visit and he did an excellent job with my winter maintenance on my multiple units in the household. He also addressed an issue while cleaning the furnace blower wheel. His communication was clear and concise with what he planned to do to address the issue quickly. He was confident and I had 0 concerns or questions. Great job Izzy!

Jeff S. 10/14/2026

5 stars

Paul was great! Arrived on time and completed maintenance on my humidifier, tankless water heater, and two furnaces. All work was performed under my Gold Star maintenance program, so all maintenance charges were covered. Paul did provide a few proposals for additional services on furnace & tankless water heater, but those were emailed to me for further consideration. Paul was friendly, knowledgeable, and answered all my questions.

Jack N. 10/12/2026

5 stars

Gabe did an excellent job with our annual service visit. He arrived in the early part of our service window, was friendly and knowledgeable, and got the work done in a very reasonable amount of time. I have great confidence in Deljo, and am a long-time customer.

Ruth C. 10/9/2026

5 stars

I’ve been using Deljo for 20 years for HVAC but now venture into enlisting their plumbing services. Bashar was very courteous, efficient & informative, and I’d definitely request him again for the next plumbing job. Great experience!

Christopher R. 10/2/2026

5 stars

Working with Deljo is always a good experience, and today’s appointment with Izzy was no different. He was able to come early which actually worked better with our schedules, but called me ahead of time to make sure that was okay. He was friendly and knowledgeable when he explained the work he had done during his visit and our options for fixes. He was also able to schedule a quote appointment for us while he was still here. We would highly recommend working with Izzy and the Deljo team!

Lauren H.  9/25/2026

5 stars

Drew performed the seasonal maintenance on my AC. It needed some repairs and updates and he was able to fix everything at the same appointment. He also noticed issues with the hot water heater and we were able to get ahead of that, as well.

Emily W. 9/11/2026

5 stars

I would leave six out of five stars if I could! My technician Jorge went above and beyond on his service. There was buildup in the rental property’s toilet from the previous tenant. One maintenance person did a surface level job of cleaning but did not fully remove the obstruction. Jorge went above and beyond and came to a solution and even explained the perpetual problems older toilet models can cause. Moving forward with this insight, I can perform my own upkeep the previous tenant did not. Thank you kindly!

Kayla K.  9/15/2026

5 stars

We just had our new boiler installed by Jonathan and Carlos. First rate work! They arrived on time, removed the old boiler, installed the new unit, and explained the features. Both guys were pleasant. Bring on the cold this winter! We are ready thanks to the team from Deljo.

Edward B.  6/26/2026

5 stars

Deljo’s heating and cooling team was awesome to work with. As a first-time homeowner, I really appreciated how clearly they explained everything and answered all my questions. From the quote to the install and follow-up, the service was top-notch. Highly recommend!

Lindsey A. Chicago, IL

5 stars

Matt did an amazing job. He serviced our home and our rental property. He gave us options to help our systems run more efficiently. He also told us about Deljo’s new plumbing inspection which was very affordable. He is great!

Jordan R. Chicago, IL

5 stars

We had a problem with our Humidifier and called Deljo. Jesus came out to help and was amazing. He was extremely knowledgeable, detail oriented, and super courteous. Amazing customer experience!

Jeff C. Chicago, IL

5 stars

Jordan and Jesus were extremely helpful and knowledgeable! We would 100% work with them and have them back. They were both very professional and efficiently fixed our heating system.

Emily L. Chicago, IL

5 stars

Shout out to Ernesto for coming out and servicing our furnace and air con. Deljo provides a great service and glad to trust them with our HVAC for our small business.

Lauren H. Chicago, IL

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