Tankless water heater have been used in Europe and Asia for 50 years, and they are gaining popularity in the US. Right now they represent about 8% of new sales in the US. Tankless heaters, also called on-demand, flash or instant water heaters, qualify for a $300 federal tax credit.
How efficient are tankless water heaters?
Tankless water heater are about 10%-20% more efficient than tank heaters, depending on circumstances. The problem with tanks is that heat leaks out of the tank, and the heater has to constantly reheat the water, 24 hours a day.
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