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That big tank of water in your home can be replaced with the same amount of hot water (or more) from a water heater the size of a carry-on suitcase—and save at least $100 a year on your utility bill.
That’s the promise of tankless water heaters, also called on-demand water heaters, which produce hot water only when you turn on the faucet, start a cycle on the washing machine, switch on the dishwasher, or otherwise call for hot water.
While storage tank water heaters are by far the most common type, tankless water heaters are gaining in the market due to the efficiency, an appealing characteristic given that heating water is the average U.S. home's second highest utility cost after heating and cooling the house itself.