Tankless water heaters are becoming more and more popular nowadays. One of the latest innovations, it is a compact solution that provides hot water on-demand. In contrast with the storage tank, pipe coils in the tankless models are heated to the maximum and then filled with water.
Usually, tankless water heaters heat the water up at an average rate 2-5 gallons per minute. Tankless water heaters save energy because they do not constantly keep the water warm. Also, since there is no tank, this heater does not require a lot of space. Its life expectancy is more than 20 years, however, the tankless system still needs to be properly cared for and maintained.
This type of water heater is a bigger investment initially with the installation cost starting from $2500 (labor only), but it lasts longer and consumes less energy than the storage water heater.