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Tankless hot water heaters, also called point of use or instantaneous hot water heaters, are energy efficient and heat the water without the use of a storage tank. The primary advantage of a tankless water heater is having an instant and continuous flow of hot water at your fingertips at any given time. This method of heating on demand is very energy efficient and saves a significant amount of energy and water since it is only running when there is a demand for hot water.
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In stark comparison, traditional hot water heaters incorporate a large tank of water which must be continually kept hot due to cooling off or standby loss. Think of heating your house when you are away for an extended period of time and how much energy that would waste and how much money that would cost.
Now apply this same line of thinking to your water heater and you will easily see why it makes so much sense to use a tankless unit that only heats the water when it is needed.
Point of use (tankless) water heaters also have another distinct advantage in that they are typically placed right where the hot water is being used. Not only does this provide the homeowner with instant, on-demand hot water, but it also saves a tremendous amount of water that is normally wasted as it runs through the piping and down the drain, until the water gets hot at the faucet or shower head.
Tankless hot water heaters are available in three energy efficient versions including electric, natural gas and propane. Manufacturers include: