Tankless water heaters only turn on to heat water when it’s needed, which eliminates the need for a storage tank. When you turn on the shower, water passes through the heater and activates the unit.

These heaters are relatively small, which means they can be installed right where they’re needed, as opposed to a standard large tank, which usually is installed in the basement or a closet. Besides the space you save, there are other benefits.

Tankless Benefits

With a standard hot water heater, you must keep a full tank of hot water. This means utilizing energy constantly because of the loss of heat from the tank and from the pipes that deliver the water. Homeowners who go tankless can expect to save between 10 to 15% on energy bills depending on the type and model.

Tankless water heaters have a much longer life expectancy than their traditional counterparts without the risk of leaks (usually 20 years or more). Tankless water heaters can heat water using electricity, gas, or propane.

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