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Q. I need to replace my water heater at my second home and was wondering if I should buy a tankless one to save energy. I recently had the anode rod removed (and not replaced) because the smell of rotten eggs was awful and heard that removing it would take away that smell. I was surprised to see how old the tank is. The model number, which indicates the year it was made, was from (gasp!) 1977. I suspect they built them better “back in the day.” Removing the rod hasn’t completely done the trick (the hot water still smells, just not as bad), and now the mineral content seems to be worse, coloring my white dish towels a fine yellowish/brown.

I’m wondering if a tankless water heater would be better, even though they’re more expensive. We have well water and use the home year-round, every weekend in the summer and about two times a month in the winter. What is your opinion about removing the rod and getting a tankless heater?

Beth Sjo-Grondahl

A. For the last 50 years or so, the makers of water heaters have included an anode rod inside the water tank as a rust prevention tactic. It’s called a sacrificial rod because the metal (aluminum or magnesium) is designed to attract elements that would otherwise erode the tank.

The rod is not vital to the tank and can be removed or replaced, said Stewart Strand of Strand Plumbing Co. in Palatine. Some water supplies dissolve the rods and produce hydrogen ions that produce the rotten-egg gas. Removing it may help, he said. But if there’s a bad smell from the water, it’s a good idea to have a sample analyzed by a professional laboratory, so that a treatment plan could be developed to improve water quality.

There are pros and cons to using a tankless water heater, Strand said. The initial cost of a tankless or on-demand water heater, which only heats water at time of use, is going to be higher than a conventional storage tank water heater. But the cost of operating the heater may be lower over the long run.According to the U.S. Department of Energy, for homes that use 41 gallons or less of hot water daily, demand water heaters can be 24 percent to 34 percent more energy efficient than storage tank heaters. They can be 8 percent to 14 percent more energy efficient for homes that use a lot of hot water–around 86 gallons per day.

Whether installing a tankless heater is worth it will depend on a couple of factors. The first is the cost of installation. In addition to the price of the water heater, the technology often requires larger gas lines, different exhaust vents and water treatments. For that reason, tankless water heaters aren’t always cost-effective for an existing home.

Another consideration is the maximum flow rate, which will depend on the number of hot water devices you’ll use at any one time. If you have a large family, you might not have enough capacity to take two showers and run the clothes washer and dishwasher at the same time. Keep in mind that the higher the flow or the greater the temperature added by the heater, the more expensive the demand heater will be. Demand heaters capable of providing a flow of 5 gallons per minute (the equivalent of two showers running at the same time) with an 80-degree temperature rise can cost $1,200 or more installed.

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