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Tankless vs Hybrid Water Heaters

tankless
Instantaneous or Demand Water Heaters, provide hot water only as it is needed. Traditional storage water heaters produce standby energy losses that cost you money. A Tankless water heater detects that your using the hot water and quickly turns on and starts heating the water in the hot water pipe.  These water heaters don't take up much room and hang on the wall. 

If you are thinking about choosing a tankless water heater as a replacement, do your research well.  Most tankless water heaters will not swap straight out with an existing tank water heater.  This is mostly because of the gas or electrical requirements that the new tankless water heaters require.  Changing about the gas line or electric line will probably run over $500, so the cost savings is probably gone. 

These units are also not a good choice if your home has a hot water recirculation system.  Tankless heaters are very popular in Europe, but our homes in the states have not been designed for the tankless models.  Tankless water heaters also run about 3 times the cost of a regular tank water heater, but may save you around 25 percent on your water heating bill. If you gas meter is within about 10 feet of your existing water heater or your electric supply panel is close to your electric water heater, then a tankless water heater may make since.

One better option is to go with a hybrid water heater, they are a tankless water heater with a small 2 gallon tank the allows for a recirculation system and doesn't require a larger gas line.