If you are looking to replace your conventional water heater you might want to consider a tankless water heater. A tankless water heater provides instantaneous hot water on demand to your whole house. The idea is similar to the small instant hot taps that you sometimes see in a persons kitchen, but this type of water heater provides instant hot water on a much larger scale.

The tankless water heater works by passing cold water over a set of heating coils that super heat the water in a very short time. The advantage of this type of water heater over a conventional one is that you only heat the water when you need it. Instead of heating 40 gallons of water all at once and then paying additional cost to keep it hot, the tankless system only heats the water that you are using right at the moment. Also, since a tankless system contains no tank, there is less problem with sediment collection and hard water calcification.

Here are some things you should consider when you are thinking about buying a tankless water heating system.

• First you need to consider the type of power you will use to run the system. You can find tankless systems that run on electricity, natural gas, and propane. While electric units are the most energy efficient, they are also limited in the overall flow rate you can achieve. Small electric units are an excellent choice for a small house, but if you have high hot water demand, you will likely need to purchase a gas fired unit.
• You should consider the size and placement of the unit. Tankless water heating systems tend to be smaller than conventional water heaters, so they can fit in tighter quarters. It is also possible to distribute the system to keep hot water runs shorter and to allow for the use of an electric powered system by spreading out the demand.
• Consider the system demand when you are selecting the system. A large house can have a peak demand of anywhere 10 – 15 gallons per minute (gpm). You should select a system that meets your expected peak demand. To estimate your demand, count the hot water taps at sinks, these use about 1 gpm. Don’t forget your dishwasher. The hot water inlet counts the same as a sink. Count the number of showers and tubs. These faucets use about 3 gpm. Add all these values and multiply by .7 figuring that at most 70% of the system will be on at the same time. That is the estimated demand for the tankless system.

These systems do come at a price. You can expect to pay about 2 to 3 times more for a tankless system than for a conventional water heater. Prices vary, but at the time of printing and standard household unit costs about $700 USD.