A tankless water heater is great for those who like to have hot water instantly on demand, but there are some drawbacks.
In many countries, a tankless system is standard as they are limited by space and electricity costs. What a tankless water heater does is give a system for warming water that doesn’t include boiling hot water like large capacity water heater tanks.
The thinking behind this sort of water heater is that you can save money by not having to boil hot water for it to sit in a tank for an extended period of time. It makes sense as water sitting in a tank loses it heat over time. This way, if somebody chooses to take a shower, run the dishwasher, or do some clothing in the clothes washer the water is already warm.
A quality tankless water heater costs around $700 on up. You can pick up a good gas or electric water heater for around $400-$800.
Tankless water heaters are more energy efficient. Tankless water heaters can offer 25% to 35% or $50 annually.
Tankless water heaters last 20+ Years. Tank water heaters last 10-15 years, which means you’ll be replacing them sooner.
Tankless water heaters can hold about 2 to 5 gallons of hot water at a time. A tankless water heater will supply adequate boiling hot water for a 1 to 2 person home, after that, you may require a second unit.