Tankless vs. Traditional Water Heaters: Which Is Best for Montana Homes?

When it comes to home comfort in Montana, a reliable water heater isn’t a luxury—it’s a necessity. Whether you’re stepping into a warm shower on a cold Billings morning or washing dishes after dinner in Laurel, you count on your water heater to deliver. But if you’re replacing an old unit or building a new home, you’ve likely faced the question: should you go with a traditional tank-style heater or a modern tankless system?

At Brown Plumbing & Heating, we’ve installed both systems across Yellowstone County, and the answer depends on your household’s needs, budget, and lifestyle. Here’s a breakdown to help you decide which water heater is right for your Montana home.

How They Work: A Quick Overview

Traditional Water Heaters store and constantly heat a set amount of water—usually 40 to 50 gallons—so hot water is always ready when you need it. Once it runs out, you must wait for the tank to refill and reheat.

Tankless Water Heaters (also called on-demand systems) heat water only when you turn on a faucet or appliance. There’s no storage tank, and hot water is produced as it flows through the unit.

1. Energy Efficiency

Montana winters are long and cold, which means heating costs can add up. Tankless heaters are typically more energy efficient because they don’t keep water hot 24/7. According to the U.S. Department of Energy, homes that use less than 41 gallons of hot water daily can see up to 34% energy savings with a tankless unit.

However, in large households where multiple fixtures are used simultaneously, a traditional heater might still be more cost-effective depending on your usage habits.

2. Upfront Cost vs. Long-Term Savings

Tankless systems often cost more to purchase and install—sometimes double the price of a traditional unit. This is due to both the technology and potential upgrades to your home’s plumbing or gas lines.

That said, tankless heaters last longer (up to 20 years vs. 10–15 years for traditional tanks) and can lower monthly utility bills, especially in energy-conscious homes.

If you’re planning to stay in your home long term, a tankless system can pay off over time. But if you’re on a tighter budget or planning to move within a few years, a traditional heater may make more sense.

3. Hot Water Demand

For smaller households or couples in Laurel, a tankless heater may offer all the hot water you need without wasting energy. But for families in Billings with multiple bathrooms, a traditional tank may be more dependable—especially if several people shower at once or appliances run simultaneously.

Some tankless systems can struggle to keep up with multiple hot water demands at once unless they’re properly sized or installed in parallel systems.

4. Space Considerations

Tankless heaters are compact and mount on a wall, making them ideal for homes with limited space or for freeing up storage in utility rooms. Traditional heaters require floor space and clearance around the tank.

For newer homes or renovations, tankless units can help maximize square footage—something to consider when planning your layout.

5. Maintenance and Lifespan

Traditional heaters generally require less maintenance but may need more frequent replacement. Tankless systems benefit from regular descaling, especially in areas like Billings and Laurel where water hardness varies. With annual maintenance, though, a tankless system can last two decades or more.

So, Which Is Right for You?

Choose a Traditional Water Heater If:

You have a larger family or high simultaneous water usage.

You’re looking for a lower upfront cost.

You plan to sell your home within the next few years.

Go Tankless If:

You want lower monthly energy bills.

You value space savings and modern efficiency.

You’re building your “forever home” and want long-term value.

Need Help Deciding? Let Brown Plumbing & Heating Guide You

Whether you’re leaning toward tankless or tank-style, our licensed plumbers can evaluate your current setup and recommend the best solution for your home, budget, and water needs. We’ve served the Billings and Laurel communities for years and know what works best for Montana’s unique climate and water systems.

Visit https://brownplbg.com to schedule a consultation or water heater installation. We’re here to help you stay warm, efficient, and comfortable—no matter the season.