Traditional tank-type water heaters store water in a large tank, continuously using energy to keep it warm and ready for use. When you need hot water, the tank slowly empties. If multiple people in your home are taking hot showers, the tank may be entirely depleted. This means that you can run out of hot water in the middle of a shower and have to wait for the tank to refill and reheat. Tank-type water heaters last about 10-15 years.

Tankless water heaters, also called on-demand water heaters, don’t maintain a supply of hot water in a tank. Instead, they heat water instantly as you need it and stop heating it the moment you close the hot water tap. This translates to an endless supply of hot water, so you’ll never find yourself taking a cold shower again. They also save energy because they don’t have to continuously heat a tank of water. The lack of a tank makes them much smaller and allows you to install them in more compact, out-of-the-way spaces. With a life span of 20+ years, they also last longer than traditional water heaters!