We get a number of questions about tankless water heaters.

 

There are many benefits to tankless water heaters: the water is heated only "on-demand" so no energy is wasted keeping a large tank of water hot and ready to use; most of the 20%-30%" passive energy loss" (in pipes, etc.) is avoided; on average, tankless systems cost one third less to operate; tankless water heaters have an average life expectancy of 20 years, while traditional water heaters last 10-15 years; and tankless water heaters are powerful, but compact--most can be wall mounted inside or outside the home.

 

Another good resource on these systems it the U.S. Department of Energy's Energy Savers website is a good place to start.