When you’re using a tankless water heater and turn on the hot water faucet, cold water flows through the pipe and into the water heater. A gas or electric heating element brings the water to a temperature that you have pre-selected then sends it to the faucet you have turned on. Since power is not used until you actually turn on the hot water faucet, a tankless water heater can save you up to 22% a year on fuel costs.

Tankless water heaters are very convenient since you don’t have to wait for a tank to be refilled after someone takes a shower or uses the dishwasher. The flow rate is limited, of course, because of the way the water is heated so some adjustments may have to be made. Most of these water heaters produce about 2-5 gallons of hot water per minute which is more than adequate for two or three people. Gas powered models have a higher flow rate than electric ones. If you have a large family you might want to install more than one tankless water heater but if you’re like most of us, you’re already in the habit of conserving water and saving energy. In this case, a tankless water heater will not significantly impact your hot water usage.

Tankless water heaters are great for hot tubs, replacing conventional water heaters or as a backup for solar water heaters. They last about 20 years and parts are easily replaceable.