More and more people are choosing tankless water heaters over traditional tanks, and for good reason. Tankless water heaters, also known as instantaneous water heaters, demand heaters, or instant water heaters, are compact heating units that use gas or electricity to provide hot water on demand. This reduces standby energy losses that cost you money. When a hot water tap is turned on, water enters the tankless water heater, a sensor activates an electric or gas heating device, which quickly raises the water temperature. When the tap is turned off the water flow stops and the heating element shuts off so that no additional energy is used. Tankless water heaters can save you 10 to 25 percent of your monthly utility bill.

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