Tankless water heaters offer a modern and more energy efficient alternative to traditional storage tank hot water systems. With rising fuel costs, installing a tankless water heater is one way to make savings on household bills and help the environment at the same time. One of the disadvantages of storing your hot water supply in a tank is that the energy that goes into heating the water is often wasted if you don't use up all the hot water each day. In contrast, with a tankless hot water heater, the water is heated on demand, so you only use energy to heat up what you need.

There are various different types of instant water heaters. Tankless gas water heaters tend to have larger capacities than electric ones, and as such the initial costs can be higher. Some gas-fired units can provide up to 5 gallons of hot water a minute, which is sufficient for running two showers at the same time. An electric tankless water heater might be able to heat 3 gallons per minute. Another advantage of on demand water heaters is that the units are generally small and compact, saving loads of space compared to a big storage tank. They can be mounted onto an inside wall, in a closet or under a sink. Some models are even suitable for attaching to an outdoor wall if this is more convenient.

Despite the initial installation costs of a tankless water heater, the savings the average household can make are significant. And with the cost of energy set to continue to rise in the future, it makes sense to economize and to improve the energy-efficiency of our homes. Inexpensive electric tankless water heaters can decrease the cost of heating hot water by around 10% or even 20%. A gas unit may cost more initially, but could save anything from 20% to 40% annually. Switching off the pilot light when it's not in use is a simple but effective way to save energy. Tankless water heaters generally have a longer lifespan than tanks, as they are not prone to corrosion, so buying one can be a great investment for many years to come.