What Does a Tankless Water Heater Actually Do?

A conventional water heater stores a supply of hot water and maintains that water at a set temperature.

A tankless unit heats the water as it is being used.

That eliminates most of the standby heat loss associated with keeping a tank of water hot and can improve energy efficiency. It can also provide hot water for an extended period without eventually emptying a storage tank.

Those are legitimate advantages.

But they need to be weighed against the additional cost of the equipment, installation requirements and the way the family will actually use hot water.