Tankless Water Heaters
Homes with tankless water heaters are estimated to use about 30-50% less energy than units with tanks, saving families about $100 a year. Tankless water heaters are “on demand” meaning they heat water as it is needed, hence the energy saving idea; the heater is not trying to constantly keep 40 to 50 gallons of water hot. This also eliminates “stand-by” loss, or the cooling of hot water before use.
These heaters are also known for supplying continuous amounts of hot water, while tank water heaters will run out of hot water. However, it is important to understand that this continuous supply depends on the size of the tank and the home's water usage. Before installing a tankless water heater you must consider how much water your family typically uses because smaller tanks are only sufficient in heating one water source at a time; larger tankless water heaters will allow for multiple water uses, but are more expensive.
Tankless water heaters initially have a higher cost for purchase and installation. For example, the installation of more energy sources may be necessary because tankless water heaters require more electrical power for their on demand sourcing. However, tankless water heaters last about three times longer than tank water heaters and will save more money in the long run.