
The idea behind a tankless system is that it heats the water as you need it instead of continually heating water stored in a tank. Tankless heaters have been the norm in much of Europe and Japan for quite some time, but they haven't gained popularity until recently largely due to "the green movement".
In order to get you that piping-hot shower when you want it, a tankless water heater uses a powerful heat exchanger (see diagram to the left) to raise the temperature. A heat exchanger is a device that transfers heat from one source to another. There are heat exchangers in your air conditioner, refrigerator and car radiator.
In this case, it transfers heat generated by electric coils or a gas-fired burner to the water that comes out of your faucet. This exchanger is activated by the incoming flow of water. So when you turn on your hot water tap, the incoming water circulates through the activated exchanger, which heats the cold water to your preset temperature.
- They never run out of hot water
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They last five to 10 years longer than tank heaters.
- They're more efficient with no standby heat loss.
- They take up less space and can even be installed on walls or outdoors with an anti-freeze kit.
- Smaller units can be installed under cabinets or in a closet, closer to the point of use.
Cons:
- They cost up to three times as much as a tank water heater.
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Gas units require the additional expense of an annual servicing.
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Electric models require a lot of energy.