What Is A Tankless Hot Water Heater?

If you’ve ever run out of hot water mid-shower, you’ve probably wished there was a better way to heat water in your home. That’s where tankless hot water heaters come in. But what is a tankless hot water heater really, and why are so many homeowners making the switch?

At Heritage Services, we’re here to break it down for you in plain language; no confusing jargon, just the facts (and a little fun along the way).

Tankless vs. Tank Water Heaters: What’s the Difference?

For decades, most households used tank water heaters; those big, bulky metal cylinders were usually hidden in your basement or closet. These storage tank water heaters keep a large supply of water hot around the clock, waiting for you to turn on the tap.

The problem? They heat and reheat that stored water, even when you don’t need it. That constant energy use adds up, and so does the wear and tear on the unit. Not to mention—once you run out, you’re stuck with cold water until the tank refills and reheats.

A tankless water heater, sometimes called an on-demand system, works differently. Instead of storing hot water, it heats water only when you need it. The second you turn on a hot water faucet, the unit kicks in. A flow sensor detects water movement, and the system activates either heating elements (for electric tankless water heaters) or a gas burner (for gas tankless water heaters). The water passes through a heat exchanger, and voilà, you’ve got endless hot water.

How Do Tankless Water Heaters Work?

How Does a Tankless Water Heater Work

The way tankless water heaters work is pretty cool. Imagine this:

  1. You turn on the shower or sink.
  2. A flow sensor detects the demand.
  3. The unit ignites the gas burner or powers the electric heating elements.
  4. The heat exchanger transfers that heat directly into the water.
  5. Hot water comes out instantly; no waiting for a tank to refill.

Because they only heat water on demand, they waste less energy compared to traditional systems. No standby heat loss, no giant hot water tank taking up space. Just reliable, continuous hot water whenever you want it.

Gas vs. Electric Tankless Water Heaters

So, which is better, gas tankless water heaters or electric tankless water heaters? The answer depends on your home and your hot water demands.

Gas Tankless Water Heaters

These run on natural gas or propane and typically have a high heating capacity. That means they’re great for large households where multiple showers, laundry, and the dishwasher might all be running at the same time. Gas models may need upgraded gas lines and sometimes a recirculation pump for faster hot water delivery, but they can handle heavy demand like a champ.

Electric Tankless Water Heaters

These are smaller, easier to install, and don’t require venting like gas units. They work great for smaller homes, condos, or places where natural gas isn’t available. However, their tankless water heater’s output might not be enough if your family needs all the hot water at once.

Bottom line: tankless units vary. The right choice depends on your household size, your current system, and how much hot water you actually use.

Tankless Water Heater Pros

If you’re wondering whether a tankless water heater is worth it, let’s talk perks:

  • Endless Hot Water: Never yell “Who used all the hot water?!” again.
  • Energy Efficiency: Most tankless water heaters only heat water when you need it. That means less wasted energy and lower energy bills.
  • Longer Lifespan: A new tankless water heater can last 20 years or more—much longer than a traditional tank water heater.
  • Space-Saving: Say goodbye to that big, clunky tank. A tankless heater mounts right on your wall.
  • Energy Savings: By cutting out standby heat loss, you reduce your energy consumption and energy costs over time.

Tankless Water Heater Cons (Because We’re Honest)

energy efficient on demand hot water

We’d love to say tankless systems are perfect, but like anything, they have downsides:

  • Higher Upfront Cost: They cost more to buy and install compared to conventional storage water heaters.
  • Output Limitations: One unit can only heat so much water at once. For larger homes, multiple systems or a bigger high heating capacity model might be necessary.
  • Installation Requirements: Gas models may need new gas lines or special venting. Electric water heaters might require an electrical upgrade.

Still, when you consider the long-term energy savings, reliability, and endless hot water, most homeowners think a tankless water heater is worth the investment.

Tankless vs. Traditional Systems: A Side-by-Side

FeatureTankless Water HeaterTraditional Tank Water Heater
Hot Water SupplyContinuous hot waterLimited to size of tank
Energy EfficiencyEnergy efficient, no standby heat lossWastes energy reheating stored water
Lifespan20+ years10–12 years
SpaceWall-mounted, compactLarge bulky storage tank
CostHigher upfront, lower over timeLower upfront, higher over time

The Technology Behind Tankless Systems

Most tankless water heaters are smarter than they look. They use a temperature sensor to keep your water temperature steady, even if someone flushes a toilet while you’re showering. Advanced temperature control features let you set the exact comfort level you like.

Some systems include a recirculation pump to cut down on wait time, making sure you get hot water flowing instantly instead of waiting for cold water to flush out.

Many models now report energy usage and have a high uniform energy factor, meaning they convert most of the fuel or electricity they use into heat.

Energy Efficiency: Why Tankless Water Heaters Shine

Heritage professional inspecting a tankless water heater

One of the biggest reasons homeowners switch is energy efficiency. Because there’s no stored water constantly being reheated, you’re not paying for standby heat loss.

A tankless system only uses energy when you’re actually heating water. That cuts down on energy consumption and lowers those pesky energy bills. Over time, the energy savings can offset the higher upfront cost of the unit.

Is a Tankless Water Heater Worth It?

So, is a tankless water heater worth the switch? Let’s put it this way:

  • If you want to save money on long-term energy costs… yes.
  • If you love the thought of continuous hot water for showers, laundry, and dishes… yes.
  • If you’re tired of replacing your conventional storage water heater every 10 years… yes.

A new tankless water heater isn’t just about hot water; it’s about convenience, comfort, and a smarter way to manage your home’s energy usage.

Things to Consider Before Buying

on demand supply of hot water with Heritage

Before you buy, here are a few questions to think about:

  • How many people live in your home, and what are your hot water demands?
  • Do you want gas tankless water or electric tankless water heaters?
  • Will your home need new gas lines or electrical upgrades?
  • Do you want extra features like a recirculation pump or Wi-Fi monitoring?
  • Have you checked with your local Better Business Bureau to find a reliable installer (like Heritage Services)?

And of course, it’s always smart to request cost estimates before making the final call.

Why Choose Heritage Services?

At Heritage Services, we know tankless water heaters work best when they’re installed correctly. We don’t just hook it up and call it a day; we’ll check your home’s setup, your hot water delivery needs, and even help you compare tankless water heater pros and cons for your unique situation.

We work with both gas models and electric tankless water heaters, and we’ll make sure your tankless water heater’s output matches your lifestyle. Plus, we’ll be honest with you about whether a tankless system really makes sense for your home.

We’re not just about installing equipment—we’re about helping you enjoy endless hot water without wasting money or energy.

Talk to Us About Your Tankless Water Heater

So, what is a tankless hot water heater? It’s a modern, smarter alternative to the old hot water tank. It gives you reliable hot water, cuts down on energy usage, and saves you money in the long run. Whether you choose gas tankless water heaters or electric water heater models, the upgrade is about more than just hot showers; it’s about convenience, comfort, and smarter energy choices.

At Heritage Services, we’ll help you pick the right system, handle the installation, and keep everything running smoothly for years to come. No more waiting for stored water to heat up. No more running out of hot water halfway through your morning routine. Just hot water flowing whenever you need it.

Ready to make the switch? Contact Heritage Services today, and let’s talk about getting you a new tankless water heater that keeps up with your lifestyle.