Tankless water heaters, also known as demand-type or instantaneous water heaters, provide hot water only as it is needed. They don't produce the standby energy losses associated with storage water heaters, which can save you money.
Tankless water heaters heat water directly without the use of a storage tank. When a hot water tap is turned on, cold water travels through a pipe into the unit and a gas burner heats the water. As a result, tankless water heaters deliver a constant supply of hot water without the need for a bulky hot water tank.
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