Tank water heaters can result in a large electricity or power bill and a way to decrease your bill is by using a tankless water heater. Regular water heating systems account for about 30% of all the energy you use in a month. While many tankless water heater companies say they can reduce your bill in half, they don’t actually reduce your bill that much but it will make a difference. Additional names for tankless water heaters in clued on demand or instantaneous water heaters.

Tankless water heaters work by quickly heating water through a heat exchanger. A gas tankless water heater is actually much more efficient then a gas fired storage tank but the savings are actually not that great as you still use gas to heat the exchanger. Electric tankless water heaters can be used for outdoor sinks, remote BBQ, poolhouse, pool shower, hot tubs, remote bathrooms or as a booster for solar water heating, dishwashers and sanitation.

There are two basic models currently available a gas tankless water heater or an electric tankless water heater. Each type of tankless water heater has specific requirement and you need to determine which type your house can handle or if you need to make any changes. Electric models will require certain voltages, amperage and its own circuit breaker. A gas model needs to have proper ventilation.

When choosing a model you need to first think what do you want the tankless water heater for? If you only want the tankless water heater for a single fixture then you should look into the following models, Stiebel Eltron Point of Use, Chronomite Instant Flow SR, or Eemax Single Point tankless water heaters. If you want to boost the heat in ling pipers then a thermostatic system is perfect or to provide hot water to two fixtures then a flow controlled model is best.

The following models can be used to produce hot water for your entire house even outdoors. They include the Rheem Indoor Gas Fired Tankless water heater, Stiebel Eltron Tempra, and Eemax EX280T2T series 3 tankless water heaters.

As with most of the current energy efficient products today the start up costs tend to be expensive but these are offset by the reduction in energy costs as you use the product. Using a tankless water heater uses much less energy then a traditional tank water heating system. You may need to do a few home renovations to install the system as electric models will need plugs and gas models will need proper ventilation. The systems should also be cleaned once a year and you may need to install filters depending on the quality of your water.

A few disadvantages are that the water temperature tends to be inconsistent. Additionally if you only need a small amount of hot water then the heat exchanger may never turn on. Tankless systems also do not produce instant hot water it may take a few minutes for the water to warm up. Also if the power should go out then you will not have hot water.