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.

Instead of heating a full tank of water and keeping it at a hot temperature the tankless water heater heats water through a heat exchanger only when hot water is needed. You will still use power to operate the water heater but not nearly as much as maintaining a tank of water at a specific temperature. Tankless water heaters can be used for your entire houses water needs or for dishwashers, remote bathrooms, hot tubs, poolhouse, remote BBQ, outdoor sinks and more.

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.

An important consideration is what you want the tankless water heater to do. Is it only require for one sink or do you want it to heat the water for your entire house. Some single point tankless water heaters available include the Chronomite Instant Flow SR, Stiebel Eltron Point of Use, and Eemax Single Point. A flow controlled tankless water heater is good for two water fixtures, such as two sinks. A thermostatic tankless water boosts the water temperature for long pipes that may connect to your sanitation or dishwashers.

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.

Despite the fact that tankless water heaters are very energy efficient they do come with some high start up costs. Though the cost of purchasing and installing a system is offset by the sayings you will receive by using a tankless hot water system. You may need to install some electrical outlets to power the electronics and fan involved and if you use a gas fueled model then you will need to have proper ventilation. Tankless water heaters also should be cleaned once a year to get rid of any calcium buildup.

A few disadvantages to a tankless water heater are that the water temperature can vary and you do not always get instant hot water. It will take a few minutes for the water to heat up. Also if you should only need a little bit of hot water the heat exchanger may not turn on. Be aware that if the power should go out you will not have any hot water with electric models.

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