How does a tank less water heater save energy?

A tank less water heater saves energy by heating water on demand, rather than storing it in a tank. This means that there is no standby heat loss, which can account for up to 25% of the energy used by a traditional tank water heater.

In addition, tank less water heaters are more efficient at transferring heat from the burner to the water, which can save up to 15% of energy. This is because tank less water heaters use a heat exchanger to transfer heat from the burner to the water, while traditional tank water heaters use a heating element that is immersed in the water.

Finally, tank less water heaters can save energy by reducing the amount of hot water that is wasted. This is because tank less water heaters only heat the water that is needed, so there is no need to drain the tank to remove cold water that has been sitting in the tank.