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Demand (Tankless or Instantaneous) Water Heater

Demand (tankless or instantaneous) water heaters provide hot water only as it is needed. They don't produce the standby energy losses associated with storage water heaters, which can save you money. When a hot water tap is turned on, cold water travels through a pipe into the unit. Either a gas burner or an electric element heats the water. As a result, demand water heaters deliver a constant supply of hot water but the heater's output limits the flow rate.
Sometimes these heaters cannot supply enough hot water for simultaneous, multiple uses in large households. For example, taking a shower and running the dishwasher at the same time can stretch a demand water heater to its limit. This can be overcome with multiple heaters

Other applications for demand water heaters include the following:

  • Remote bathrooms or hot tubs
  • Booster for appliances, such as dishwashers or clothes washers
  • Booster for a solar water heating system.

For homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%–34% more energy efficient than conventional storage tank water heaters. They can be 8%–14% more energy efficient for homes that use a lot of hot water—around 86 gallons per day. You can achieve even greater energy savings of 27%–50% if you install a demand water heater at each hot water outlet.  The fuel type, layout of your home and hot water demand will determine whether a demand water heater is a good solution for your home; the SustainableWorks Energy Consultant will guide give you the information you need to make this decision. 


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