Heating water accounts for up to 30 percent of the average home's energy budget. Rising energy prices require changes in the way we are living. Tankless Water Heaters, also known as Instantaneous or Demand Water Heaters are providing hot water only when it is needed. Traditional storage water heaters produce standby energy losses that cost extra money.

You probably do not leave your home heated when you go to vacation. You only heat your home when there is a demand for heat. In the same way, a Tankless Water Heater is used only when there is a demand for hot water. Tankless models probably are not for you if higher up-front costs and long payback are a concern.

However, they do use less energy and might make sense for long but infrequent use, such as back-to-back showers. Because Tankless Water Heaters only use energy when hot water is being used, they will likely save you more money over their expected life of 20 years than they will cost you initially.