A typical water heater stores water until you need it, continuously heats it to the right temperature during the day, and lets you set it when you need it. It's a huge tank. When you need it. To combat this enormous waste of energy, manufacturers have developed the newest and most energy-efficient method of heating water: on-demand heating. Switching to a tankless water heater is sure to save you money on more than just your electricity bill. Let's take a closer look at why you should replace water heater with tankless.

• A good reason why tankless water heaters have become so popular may simply be because they save electricity. There are several ways to accomplish this. These heaters are very efficient as they heat water only when needed.

• A typical water heater has a large tank that can hold between 20 and 80 gallons. It depends on the total capacity. This H2O is heated by the heater to the selected temperature. However, there is no concept of when to use the water, so it must be continuously heated to keep it at that temperature. This means your water heater runs 24 hours a day, providing energy even when you don't need it. Water heaters that use storage tanks experience this problem called standby heat loss. 

• The best way to understand the energy efficiency of a tankless water heater is to give an example of how it works. Now, a simple scenario: You've just finished playing outside with your kids and you need to wash the dirt and grime off your hands. Boiling water is best for this. When you turn on the hot water, the water heater actually turns on at that moment. 

• The cold water first passes through an instantaneous water heater system and then an electric or gas heating element that provides the actual heating. The heating element is so powerful that it instantly heats up the H20 to the right temperature within seconds. When you turn off your water heater, your heating unit also turns off, and your tankless system will no longer use electricity. The tankless water heater offers many benefits when replacing an older water heater. 

These benefits include ultra-compact size and incredible energy efficiency. We're at the point where it's hard to think of a good reason to buy a standard water heater over a tankless water heater. I am convinced that a tankless water heater is a big expense that will save you a lot of money down the road.