Most people heat water in their home with a traditional metal tank, but this is not the only option. A newer technology, known as a tankless water heater, is becoming more common. This method of heating water has some key benefits that make it an excellent choice in many cases. This article takes a closer look at this unique water heating system.

Understanding the System

The tankless system, unlike traditional tanks, does not store water. When hot water is needed, you simply turn on the appropriate faucet and cold water is heated inside of the heating unit. A heat exchanger and burner inside of the device heat the water to the proper temperature and hot water comes out of the spout. As soon as you turn off the faucet, the heating components in the unit are shut down until they are needed again.

The Cost Involved

The cost of a tankless system is typically significantly higher than using a tank unit. You will make up this extra cost in time, however, because tankless water heaters are much more energy efficient than traditional water heating systems. For instance, using a tankless system allows a family of 4 to reduce their energy costs by more than $95 annually, according to the U.S. government's ENERGY STAR website.

Getting The Size Right

Sizing is a key issue when you are considering installing a tankless heating unit. Sizing, as regards tankless units, refers to the amount of water they can handle. This is known as the flow rate. If you have a high flow rate in your home, you need a different unit model than if your need for hot water is not as great. Important considerations for determining what size unit you require include the number of bathrooms in your home, the number and types of shower heads in your house and how many gallons of water your bathtubs hold.

Benefits of Outdoor Units

In some cases, homeowners may feel that the cost involved in purchasing a tankless system are prohibitive, because expensive modifications to interior plumbing might be needed in some instances. One way around this problem is to install the unit outdoors. Although you might think this is impractical if you live in a cold climate, units that are made especially for outdoor installation can withstand extremely cold temperatures.

Tankless water heaters are often a great choice for the average homeowner. Contact a heating or plumbing contractor in your area for more details. A company like Anderson Water Systems can give you more information.