Traditional storage tank water heaters have been used in commercial and residential applications since the early 20th century. While most household electronics have taken great strides in terms of new technology and efficiency, the tradition tank water heater has not. With energy costs continuing to rise and interest in household technology and environmental awareness at an all-time high, the concept of "on demand" or tankless water heating has increased dramatically in popularity during the past decade.
The general premise behind a tankless water heater is to only heat water "on demand" as it is needed. This eliminates the need for a storage tank and dramatically increases energy efficiency. Almost every major shortcoming of a conventional water heater is addressed by a tankless system. Compared to a traditional storage tank water heater, a tankless system will:
- Reduce water heating costs by as much as 50%. Tankless water heaters heat entirely on demand only when hot water is needed. Since there is not hot water storage, thermal heat loss is almost completely eliminated.
- Never run out of hot water as a tankless system can literally run all day long if necessary and continuously produce hot water as needed.
- Allow you to set the ongoing water temperature to a much more reasonable and safer temperature, closer to the actual temperature you will use the water at, therefore reducing risk of scalding.
- Help you save money on your energy costs. According to the U.S. Department of Energy, for each 10 degrees Fahrenheit reduction in water temperature, you can save between 3-5% in energy costs.
- Generally handles hard water minerals and sediments much better than traditional tanks. This makes them much less likely to leak or rupture and able to maintain efficiency throughout their whole life cycle.
- Typically have much longer warranty than a traditional tank and can last more than 20 years.
- Not require much space as they are about the size of a briefcase which can save valuable floor space that can be used for storage, especially in condos and apartments.