The most popular advantage of tankless water heaters is that you will never run out of hot water. This is because tankless water heaters heat water on demand, and that means no storage or shortage of hot water. Tankless water heaters are capable of supplying more hot water than traditional tank-type water heaters.
With a tankless water heater it heats water as it passes through the unit, so you will never have to use hot water that has been stored in an old rusty tank. As the years pass by, traditional tank-type water heaters start to rust and build-up scale inside the tank, which is where your hot water is being stored for use.
Compact in design, tankless water heaters can be installed virtually anywhere. Compared to traditional water heaters, one of the most obvious differences is its small size. With a tankless water heater, you'll save energy and thus, money. On-demand systems require no pilot light and can save about half the cost of your current water heating bill since there is no re-heating of water as with traditional water heaters.