People heat water for everything from showers to doing laundry. By some estimates, heating water amounts to an average of 30 percent of a homeowner’s energy bill. Considering how important heating water is to our daily lives and how much energy is consumed in the process, we should strive to do it in the most efficient and cost effective way possible. The following information discusses tankless hot water heaters, exactly how they work, and the benefits of having one. What is a Tankless Water Heater? Tankless water heaters are also called on demand heaters because they provide heated water exactly when and where it is needed without a large tank. The process begins working as soon as a faucet or shower is turned on. The computer turns on the burner that will heat the water. As the cool water flows through the pipes in the heater the water is warmed. The heat exchanger brings the water to the desired temperature. As soon as the faucet is turned off, the water heater shuts down. Benefits of a Tankless Water Heater This type of water heater is small and can be installed in a variety of places. They cut down on energy waste because there is not unused hot water still in the pipes or sitting in the tank. They provide hot water exactly where and when it is needed, therefore using less water. Tankless water heaters will generally last longer than the tank heaters because there is usually less corrosion. Tankless normally last approximately 20 years while a tank water heater may only last half that long. Going tankless usually means cleaner water as well. Rust and scale sometimes builds up inside of water tanks. Finally, a homeowner will never have to worry about flooding due to a ruptured water tank. How Much Will a Tankless Water Heater Cost? How much is spent, and saved, is dependent upon several factors. Initially, going tankless will be more expensive because the tankless water heaters cost more than a regular tank heater. But considering that they last longer and usually save anywhere from 20 to 40 percent on a homeowner’s energy bill, in the long run it saves money for many people. Generally, gas tankless water heaters will cost less than electric ones. Gas heaters will also be able to bring the water up to a warm temperature quicker than electric ones. Homeowners will need to take into consideration how much water needs to be heated on a daily basis when deciding what size of tankless water heater to purchase. For a larger family, a smaller unit might not be enough to keep a dishwasher, a washing machine, and the shower running all at the same time.