There are two basic types of tankless water heaters to consider: whole-house and point-of-use. Whole-house models, like the Rinnai V53DeN Tankless Hot Water Heater or Rheem Performance Self-Modulating 7.03 GPM Tankless Electric Water Heater, have flow rates substantial enough to support multiple fixtures simultaneously.. Tankless water heaters are generally more energy-efficient than traditional storage tank options: according to the Department of Energy, on-demand heaters can be between 8 percent and 50 percent more efficient. This is primarily because a tankless water system eliminates the need for a large storage tank, which is susceptible to standby energy.

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Pro: Lower Risk of Leaks and Water Damage. One of the biggest risks with tank-style heaters is, over time, minerals from hard water build-up within the tank which leads to corrosion and eventually leaks. Since tankless water heaters don't have a tank, there is no risk of leaks or flooding.. An added bonus: going tankless means your home's market value increases. 2. Tankless Water Heaters Are 'Plug and Play'. Tankless water heaters are not just a simple "swap out" of your conventional gas water heater. In fact, many conventional water heaters weren't installed with a tankless retrofit in mind.