According to the Energy Star web site, the typical family can save 30% or more on gas bills by using qualified tankless water heaters as compared to a standard gas burner storage heater.  So what is a tankless water heater?  As the name suggests, there’s no storage tank for the water.  The water is heated instantly only when the tap is turned on instead of always heating a tank full of water.  Tankless water heaters take up considerably less space than traditional water heaters and the temperature can be adjusted by means of a digital controller that can be installed anywhere in the house.  Of course, another obvious benefit is not having to wait for a tank to fill and water to heat if all of the hot water is used.

So should you replace your current water heater with a tankless one?  Maybe not.  You should compare the extra cost of the system over a traditional water heater versus the expected savings.  If your current water heater needs to be replaced and you intend to own the home for a longer period of time, then it may make sense to go tankless.  Then again, the additional benefits may convince to replace sooner instead of later.

For more information, check out the following:

• The Energy Star web site
• An article on the Consumer Reports web site

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