Tankless Water Heater (also called On-Demand Water Heater). A tankless water heater has no tank and stores no hot water. When hot water is needed, the water is heated on demand. When the hot water tap is turned on it triggers a flow switch that activates the burner which heats the cold water entering the tankless water heater. The water is rapidly heated to the desired temperature. This continues for as long as the hot water tap remains in the ‘on’ position.
When installed in your house, and when the tap is turned ‘off’ the system shuts down resulting in substantial energy savings over units that have hot water stored in the tank on ‘stand-by’. A conventional water tank does not require an electrical outlet near the water tank for installation. And it does not require electricity. If there is a power outage you will still have hot water. A tankless water heater can save space and offer flexibility being able to be installed close to the point of use, and saves more energy than a storage tank water heater.