Beat Florida’s Rising Energy Costs: The Smart Water Heater Choice for Your Home
With Florida’s electricity rates climbing and energy bills increasing across the state, homeowners are looking for smart ways to reduce their monthly expenses. One of the most impactful decisions you can make is choosing the right water heater for your home. The average residential electricity bill in Florida as of May 2025 was approximately $165.82, with an electric rate of 14.98 ¢/kWh, while current rates have risen to 15.09 cents per kilowatt-hour (kWh). Understanding the differences between tankless and traditional water heaters can help you make an informed decision that saves money for years to come.
Why Florida’s Climate Makes Water Heater Choice Critical
In Florida, thanks to our warm climate, the incoming temperature averages about 72 degrees to 77 degrees Fahrenheit; so the rise is only 30 degrees to 50 degrees Fahrenheit, depending on the time of year, location within the state and how hot you like your morning shower. This compares to the 60 degrees to 70 degrees Fahrenheit rise needed by a home in one of the northern states due to colder air temperature and water supply temperatures. This unique advantage means Florida homeowners can achieve better performance from both types of water heaters compared to colder climates.
Tankless water heaters actually perform better in hot climates like ours because they don’t have to fight against ambient heat to maintain stored water temperature. When your garage reaches 100 degrees, a tankless unit isn’t working to keep 40 gallons of water hot in that environment. This climate advantage translates directly to energy savings for Florida residents.
Traditional Tank Water Heaters: The Reliable Choice
Traditional tank water heaters remain popular for good reasons. These systems remain a solid choice for many Florida homes due to predictable performance and lower upfront cost. By contrast, a standard storage tank often costs $1,000-$2,000 installed, depending on capacity and labor needs, while traditional tanks cost $800-$1,500 installed and last 8-12 years.
The average capacity for a tank water heater is 50-80 gallons of hot water, which is standard for a household of 1-4 people, according to Energy.gov. However, traditional tank systems store a finite amount of hot water and need time to reheat between heavy usage periods. A family of four can easily exhaust a 40-gallon tank during busy morning routines, leaving later users with cool showers.
Tankless Water Heaters: The Energy-Efficient Alternative
Tankless water heaters are popular in Florida for their compact size and long-term energy savings, though installation requirements can be more involved. These systems have been found to perform 24 percent to 34 percent more energy efficiently than storage tank water heaters, with tankless water heaters being up to 24-34% more efficient than tank water heaters, according to Energy.gov.
Tankless units typically use 20 to 30 percent less energy because they’re not maintaining stored water temperature constantly. One of the most important benefits of tankless designs is their use of energy only to heat water as needed, rather than keeping a 30-gallon to 50-gallon reservoir of water hot 24 hours a day. This instantaneous, hot water on demand can be supplied continuously without limit so long as the energy supplied to heat the water is continuous.
Cost Comparison: Upfront vs. Long-Term Savings
The initial investment differs significantly between the two systems. A basic tankless water heater might run $1,000-$2,000 in equipment plus $800-$2,000 for installation, totaling roughly $1,800-$4,000. Tankless systems cost $2,500-$4,500 installed and last 20+ years, though you’ll also need to budget for annual maintenance ($150-$200) to prevent mineral buildup.
However, the longevity factor is important to consider. Traditional tank water heaters typically last 8 to 12 years in Florida’s demanding conditions. Tankless units can last 15 to 20 years with proper maintenance, but replacement parts can be more expensive when repairs are needed.
Performance in Florida’s Unique Environment
Households in northern states like Minnesota use 30-40% more electricity than those in warm climates like Florida, with a household in Minnesota potentially using 30-40% more electricity than the same household in Florida due to colder incoming water temperatures. Florida’s groundwater comes in at 70-75°F year-round, compared to northern states that see 45-50°F. That matters because your tankless unit doesn’t have to work as hard to heat the water.
With a lower rise, a tankless water heater can raise the temperature, faster, and with a higher gallon per minute (GPM) output. A model that produces 9.8 GPM when installed in Florida will produce only 5.6 GPM in Vermont because the colder water there requires the temperature to be raised 58 degrees Fahrenheit, rather than 28 degrees Fahrenheit.
Making the Right Choice for Your Home
The decision between tankless and traditional water heaters depends on several factors specific to your household. Household size, usage habits, and plumbing layout all affect performance. The goal is not maximum output at all times, but consistent water heating that matches daily demand.
For most Florida homes with 3+ people, tankless makes sense. The energy savings add up, and 20+ year lifespan beats replacing a tank every decade. However, if you’re happy with your current setup and not maxing out capacity, the extra $2,000-$3,000 might not be worth it.
Professional Installation Matters
Even the most advanced water heater will underperform if installation is rushed or incomplete. When considering Hot Water Heaters Brevard County, FL, it’s essential to work with experienced professionals who understand Florida’s unique requirements.
Founded in 2007, Drain Wizard Plumbing & Rooter Service is a family-owned and operated business based in Cocoa, Florida, proudly serving homeowners and businesses throughout Brevard County and the Space Coast. We specialize in full-service residential plumbing, drain cleaning, and repair solutions tailored to meet your needs with precision, reliability, and integrity. With over 40 years of combined plumbing and rooter experience—and backed by 20 years of former military service—we bring a strong foundation of values to every job we take on.
Our approach is rooted in honesty, hard work, loyalty, and a deep commitment to quality workmanship. These are the core principles that drive our success and build lasting relationships with the customers we proudly serve. Drain Wizard Plumbing & Rooter proudly serves residential and commercial clients across Cocoa, Rockledge, Titusville, Merritt Island, and throughout Brevard County, FL.
The Bottom Line
With Florida’s electricity rates continuing to rise and FPL customers seeing increases of approximately $12 per month starting in January 2025 as part of an effort to raise funds to repair infrastructure damaged by hurricanes, choosing an energy-efficient water heater becomes even more important. Both systems can work well in Florida’s climate when properly selected, installed, and maintained. The best choice depends on your specific situation, from family size and usage patterns to electrical capacity and budget considerations.
Whether you choose tankless or traditional, investing in a properly sized, energy-efficient water heater with professional installation will help you manage rising energy costs while ensuring reliable hot water for your family’s needs.