If you have been looking into ways to reduce energy costs you may have already heard that tankless water heaters or "on demand" water heaters will help reduce your energy cost. This is achieved by the tankless water heaters heating water only when there is a demand for it. Eliminating the need to store hot water which causes heat loss and energy consumption.
With a tankless water heater the water is heated by a gas burner or an electric element only heating the water when the hot water is turned on.
To keep the constant supply of hot water that the tankless heater supplies you may need multiple heaters to sufficiently service your house. If there is a lack of heaters taking a shower while running the washing machine may cause a problem. If you decide to go with a tankless water heater you will need to consider the climate where you live because the cooler the water that comes to the heater the more the heater will have to heat the water. You will also have to consider the location where you want to supply the hot water because different areas have different flow rates such as bathrooms having a low flow rate while dishwashers' flow rates are higher.
For installation of the heater use a qualified contractor. Follow the maintenance instructions recommended by the manufacturer to prolong the life of your heater. A tankless heater can last up to 20 years while a storage water heater lasts about 10 to 15 years.