These tankless ones are not exactly a new invention. They have been used in Europe for decades together now. The entire system consists of a network of coiled pipes. With this type of heater you can make hot water on demand. This means plenty of savings on the energy front.
Another key advantage that they offer over the bulky tank storage heaters lies in their size. These wall mounted units are hardly the size of a suit case. The heating elements, however, are the same in both the cases.
While the rest of the mechanism may be the same, what gives the tankless water heater the edge is ability to heat up water only when required. It is not like the case of the storage tank type which would be working hard, burning water, electricity and a big hole in your pocket, even at 3 a.m. when everyone would be fast asleep in your house.
The superior energy efficiency of the tankless types has been validated by the American Council for an Energy-Efficient Economy. The organization has clearly stated that these tanks can reduce energy consumption by as much as 10 to 15 percent. The U.S. Department of Energy (DOE) has also stated after experiments that these heaters consume less fuel.
Another area where a tankless water heater scores over the storage type is safety. They are safe because of the fact that the burners are active only when hot water is needed. This is unlike the case with the storage type water heaters where they are almost permanently on. The latest models also feature several innovative features which further enhance their safety quotient. For example, the latest models come with electronic monitoring systems that give you information about water pressure and flow. Just in case something was to go wrong, the system would automatically switch off the heater and provide you with the necessary information.