There comes a time when we all have to say goodbye to our old energy-hungry water heaters and replace them with new models that save energy, money and, in some instances, space.

The North American water-heater industry has evolved dramatically over the last several years. What used to be a choice between buying a 40-gallon tank or a 60-gallon tank is now a decision that needs to take energy-efficiency ratings and tank size into consideration. That's where the tankless water heater comes in.

The tankless water heater is a huge technological achievement. These innovative systems not only save valuable space, they also create huge energy savings which translates into huge monetary savings.

Tankless water heaters are capable of providing an instant, endless supply of hot water. Because these systems function on an on-demand basis, they don't require a holding tank to store pre-warmed water. No storage or holding reserve means that tankless water heaters have a life span that's twice as long as traditional systems because of the risk of rust and corrosion is significantly lowered.

Electric units heat the water as it passes over an electrical element. To run an electric tankless water heater, you will need to have it hardwired to your circuit breaker/electrical panel. Although, electric tankless water heaters are less expensive to purchase and operate, they typically have less capacity, which makes them less practical for large families or households that consume large amounts of hot water at one time. If you think that an electric system is right for your home, you may want to consider the Bosch PowerStar Electric Tankless Water Heater. Designed to replace the conventional 40-gallon tank, this amazing water heater comes in two powerful and compact models - both of which will fit just about anywhere.
		In a gas unit, a gas burner is utilized to heat the water. Gas-powered systems are fuelled by propane or natural gas. To operate one of these units, you'll need a gas line running through your home to where the water heater will be installed. It can easily provide endless hot water for one major application at a time. This unit is a great replacement for the traditional 40-gallon storage tank water heater. How Does a Tankless Water Heater Work?