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How Is a Tankless Water Heater Different?

Unlike the traditional tank-style models, tankless water heaters-also called on-demand water heaters-do not pre-heat and store a large quantity of water in a storage tank. Instead, when a hot water tap is turned-on, cold-water flows through the unit, where it is rapidly heated either by an electric element or gas burner. This eliminates the bulky storage tank, making it more compact in design and space-efficient.

Another huge difference comes in terms of energy efficiency. Since they only heat the water when it is needed, tankless heaters do not go through what is called "standby heat loss," associated with traditional tanks, where stored water loses the heat over some time. This 'on-demand' heating system can lead to lower energy usage and reduced utility bills. In addition, tankless water heaters can supply hot water continuously, as long as the demand does not exceed the unit's flow rate capability, hence making them ideal for households with high or consistent hot water needs