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Tankless heaters have been in use all over the world for fifty years, largely because of smaller homes and higher energy costs outside the United States. In fact, tank heaters are only used in the U.S. As natural gas and LP prices rise (as they have for the past decade) it will cost consumers more to heat water. Imagine cutting water heating costs by 50 to 70 percent – think tankless heaters.

Tankless heaters – often called “on demand” water heaters – only heat water when needed. Tank heaters, on the other hand, keep the water hot all of the time and, when on standby, loose about 6 degrees an hour. Heat in the form of Btu's also escapes up through the flue pipe constantly. Tank water heaters are incredibly inefficient and yet are used in the majority of American homes. Tank water heaters have a life expectancy of around 10 years, depending on incoming water quality. On the other hand have a life expectancy of 20 plus years and carry a warranty on the heat exchanger from 10 to 15 years (depending on the manufacturer).

You can save about 70 percent of natural gas or LP expense a year for heating water except when the Teenage Daughter Factor comes into play – more on this later. The major differences, aside from energy savings, are a gain in floor space of about 20 square feet and an endless supply of hot water.

Come equipped with the latest water heating technology and, as a result, sell for around one thousand dollars. The payback period will depend on how much hot water is used in the home. The more hot water used, the faster the payback.

Good choice for singles or small families simply because the demand for hot water is not as great as for a large family. And yet, a small family pays for heating water 24/7 with a tank water heater.

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