Across Europe and in Japan, the tankless water heater has become increasingly common. Yet, it has only been recently that North America, including the United States, has begun to embrace the concept. This is in part due to concerns about energy usage. It is also the result of a growing movement on environmental issues, particularly the Green Movement.

What Is a Tankless Water Heater?

A tankless water heater is known by two other names. All three explain the essential characteristics of this type of water heater. It is called:

• Tankless water heater
• On-demand water heater
• Instantaneous water heater

All three refer to the ability of this type of water heater to provide water only as required. It also indicates the absence of the traditional large and space-taking water storage tank.

Types of Tankless Water Heaters

Tankless systems are currently available in two types:

• Point-Of-Use: These are small. They only provide enough water for an outlet or two. They fit easily in a closet or a cabinet. Their placement reduces the lag time found in conventional water heaters, therefore decreasing water loss and water bills.
•  Whole-house: This system is larger, increasing the initial cost. They are, however, able provide hot water for more than a single unit.

Their power or heat source can be any of those associated with traditional system including: electric, natural gas and propane. However, point-of-use models are predominantly electric while whole-house tankless water heater systems tend to be either natural gas or propane.

Why A Tankless Water Heater?

The reasons for opting for this type of water heater are based on economics and the environment. The benefits of this system for the right people include:

• Savings of substantial money on monthly bills
•  Conservation of natural gas
• Lasts between five and 10 years longer than a traditional water heater
• Occupies less space
• Unlimited hot water

The major issue is cost. A tankless water heater may run up to three times more than the usual tank storage water heater system. It may also require you to do some upgrades to your natural gas delivery and ventilation systems.

As a result, it is important to make sure your home is compatible with the system. You need to make certain the type of tankless water heater you want to install will live up to your expectations. Before you decide upon a type, talk to a plumber. He or she can provide you with information on what you can expect.