On demand hot water means just that: the water is heated whenever there’s a demand for it. Best tankless water heaters heat water directly and do not store any water in it. It is also result in saving upto 34% of energy which isn’t only good for your pockets but also for the greener world. While, the traditional water heaters keep the water in the storage tank heated up regardless of actual usage. Another disadvantage of having a storage tank is that it can leak, thus causing damage to the house as it has a lot of hot water stored in it.
The water in tankless water heaters can be heated either by gas or electricity. It can last for more than 20 years which is double of ordinary conventional water heaters. On demand water heaters provide better thrift in warm climates and in homes where consumption is low.