Either a gas burner or an electric element heats the water.
Tankless water heaters vs tank.
Tankless water heaters eliminate the need to store and insulate water in a steel tank by instead heating water on the fly this is why sometimes tankless water heaters are called demand water heaters or instantaneous water heaters.
These setups only provide hot water when it is needed.
Tankless water heaters heat water directly without the use of a storage tank.
Instead they heat water as it passes through the unit using a heat exchanger to rapidly bring it.
Tankless water heaters are more compact and can heat up water as you use it.
Tankless water heaters if gas fired will save homeowners over 100 annually the longer they remain in service.
And there are limits to how much hot water can be produced per minute.
They are smaller and more energy efficient than traditional storage tank water heaters but more expensive.
As their name implies tankless or on demand water heaters don t store water in a tank.
Tankless water heaters heat only the water you need when you need it eliminating the need for a storage tank.
It uses high powered burners to rapidly heat water as it runs through a heat exchanger and deliver it directly to your faucets or shower without storing it in a tank.