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If you're tired of running out of hot water halfway through your morning shower and you'd rather not pay for hot water you never use, a tankless hot water heater could be your answer. You'll not only have a limitless supply of hot water, you can pocket significant energy savings in the bargain.

According to the U.S. Department of Energy, homeowners can save 8% to 14% on their hot water heating costs with a whole house tankless hot water heater. And that's for families that use a lot of hot water. If you use less (41 gallons or less) each day, you can save an impressive 24% to 34%. But if you install a compact, demand hot water heater at each water outlet in your home, you could be saving a whopping 27% to 50% on your hot water heating bill.

When you realize that home hot water heating can account for nearly 20% of your energy bills, the substantial savings you can enjoy with a tankless hot water heater are attractive indeed.

If you have a storage tank hot water system, no matter how well insulated the tank, you're going to lose energy. It's called standby energy loss. If you've ever jumped into the shower on a cold winter morning only to find the water barely hot and not nearly enough for a proper shower, you know what I mean.

Tankless hot water heaters save considerable energy because they don't have all that water just sitting there slowly getting cold, wasting energy. Tankless hot water heaters only operate when you need the water. Cold water flows in one end, passes over the heating elements, then out the other side and into your hot water pipes. No tank - no waste, and you never pay for hot water you don't use. Because tankless hot water heaters heat water on demand, the hot water will flow as long as you need it.

You'll pay more for a tankless system, but they typically last twice as long as a storage tank system (20 years or more). Factor in the energy savings and the convenience, and you'll be way ahead of the game. Plus, you could be eligible for a decent federal tax credit when you choose a qualifying tankless hot water heater.

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Sources:
U.S. Dept. of Energy:
http://www.eere.energy. gov/consumer/your_home/water_h eating/index.cfm/mytopic=12820

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