Tankless water heaters operate differently from traditional tank heaters. Rather than storing a set amount of water and keeping it heated to a preset temperature, tankless heaters create hot water “on-demand,” as it is required by the home. As such, these types of water heaters are more energy-efficient.
Most tankless heaters include a federal tax rebate of up to $300. In addition to this rebate, other savings you experience are a reduction in energy bills by as much as 20%. Further, tankless heaters last between five and ten years longer than traditional water heaters.
Depending upon the model, tankless water heater installation is not complicated when you have a professional do the work. Existing plumbing lines can be used if you are installing the heater in the same location as your existing one, or newlines can be run if needed.
Another benefit of tankless heaters is they take up significantly less space. This provides flexibility in where they can be installed within the home, such as on walls, under sink cabinets, and so on. All that is required is access to water lines and an electrical connection. Gas models do need to be vented and need access to the natural gas line.