• There are several benefits of one having a tankless water heater over regular storage tank in your home. When you begin researching tankless water heaters, you will find that they are sometimes known as instantaneous water heaters or on demand water heaters. 

    The first benefit is that the tankless system requires much less space than the regular storage tank. That big tank in your basement that holds the hot water will no longer be necessary. The tankless system is mounted on a wall in your basement and takes up no floor space at all. Some systems can be installed in the place where the hot water is needed and others that heat all of the water in your home from one location.

    Keeping the water that is stored in the regular storage tank is one of the drawbacks to that type of system. The water must be kept at the right temperature whether anyone is using hot water or not. That means that even when you are not home, your water heater is constantly running to keep the water hot. When you use a tankless system, the water temperature is only a concern when the hot water is needed. According to Natural Resources Canada an ENERGY STAR certified tanklesss water heater uses 30% less energy, on average, than a storage tank type.

    If you have a family that uses a medium amount of hot water every month, you will see the savings right away after you install a tankless water heater. The savings is greater for families that use a small amount of hot water, but even if you use a lot of hot water, there will still be a savings for you.

    When you are using an on demand system, you will find that if the right components are added, you will receive your hot water right away. One doesn't need to wait for the hot water to arrive at the faucet where you are using it. This will mean savings on your water bill every month too.

    One should select a tankless water heater for the type of fuel that he/she uses. For homes that heat their water with gas, there will be a different system than for those that use electricity.

    If you are installing a new tankless system in your existing home, there are a few required changes that will add to the complexity of the transition. There may be added wiring required for electric tankless water heater systems, and you made need to make changes to your electrical panel. Gas systems may require direct venting which can bring fresh air from the outside directly to the combustion chamber and vent the flue gas back out. 

    So installation costs of a new tankless system will be 2 to 3 times higher than a regular water heater installation, but you will recoup this additional investment in only a few months due to reduced energy costs. The best time to implement a tankless water heater system is during new construction or a remodel. This is why new construction is the best time to install a tankless water heater system-either gas or electric.