What are the advantages of using a tankless water heater?

Because a tankless water heater turns on when you open a hot water faucet and turns off when you close the faucet, the energy that is consumed is only for the hot water that is being used. Since there is no storage of water, and thus no constant heating and re-heating of stored water, you’re not wasting energy heating water when you don’t need it, such as when you’re sleeping or not at home. This energy savings translates to dollar savings for you and reduced impact on our environment. Furthermore, since a tankless water heater heats the water as you use it, you can have an endless supply of hot water, provided you size the unit appropriately.