Tankless water heaters are also known as on-demand water heaters. Why? Well, as you might be able to infer by the name, tankless water heaters don't store water like their traditional counterpart. Instead, high-power burners rapidly heat water as it transfers through the heat exchanger. Then, the hot water is delivered to it's destination. Tankless water heaters can be powered by electricity or gas and are found to be over 20% more energy efficient than storage water tanks.
If a tankless water heater
fits the budget, it can end up saving you money in the long run and have a longer lifespan; however, tankless water heaters can also have output restrictions. Though the water is hot instantly, if there are multiple destinations requiring hot water, one might suffer.
Storage tank water heaters offer a reserve of hot water and typically cost less for installation and maintenance, but take up more space, and if you run out of stored hot water, it can take a while for the water to warm up again.
When it comes to tank versus tankless water heaters
, it really depends on what you are looking and how much hot water you need at a time, where the unit can go, and your long-term goals for the unit and its costs.