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Tankless water heaters are cost effective alternatives to conventional heaters, which require a substantial amount of energy. Easy to install, tankless water heaters do not require a storage tank to supply hot water. Tankless water heaters are known by different names such as demand water heaters, inline water heaters, instant water heaters, instantaneous water heaters, and point of use water heaters.

Tankless water heaters function differently from standard water heaters a water flow sensor controls the water flow into the heater. Later, the burner is automatically ignited and the water flows through the heat exchanger, which in turn instantly heats the water to the required temperature. The process stops automatically when the hot water tap is turned off. The temperature can be adjusted with the turn of a dial. A specialty of tankless water heaters is that they never run out of hot water.

The prime advantage of tankless water heaters is the way they heat water only when required, thereby reducing the energy used during standby intervals. Accordingly, one can save up to 20% on the heating bill. Since a tankless water heater does not store hot water, the chance of bacteria growth is lessened. Cost effectiveness, lower maintenance, and longer equipment life are some other prime advantages of tankless water heaters. One can choose from electric tankless water heaters and gas/propane tankless water heaters. Tankless water heaters are available in a variety of sizes and affordable prices.

Of course, there are some disadvantages to tankless water heaters. They cannot provide adequate hot water for too much simultaneous use, such as taking a shower and doing laundry at the same time. Another drawback is that these heaters may leak if exposed to freezing temperatures. In addition, tankless water heaters require more instantaneous power compared to traditional water heaters. Despite the disadvantages, a tankless water heater is widely used for both commercial and residential purposes, and buyers should weigh the pros and cons before choosing the correct heater for their needs.