Traditional water heaters with a water tank store hot water over time to be used at a moment’s notice. Tankless heaters do not need to store water to deliver it to the rest of the house. When a hot water tap is turned on in the house, cold water flows through the tankless heater. As it travels through, the unit is heated by either a gas burner or electric heating coil. It then gets distributed to the tap in the house.
In addition to the electrical efficiency it provides, one of the biggest benefits to a tankless water heater is its size. Since there is no tank to store water, a tankless heater can be easily mounted to a wall. This gives homeowners more space while also giving them an option to hide a tankless heater more easily than a storage tank.