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Originally Posted by Ooper
Coach... A benefit for a tankless is the ability to locate it near a point of usage so you don't have to wait for the hot water. BUT... I think the main reason tankless heaters came into being was to save energy. The standard hot water tank has to cycle on and off to keep a reservoir of water hot at a preset temperature, whether you are using it or not. A tankless on the other hand, only heats water when a sensor senses flowing water when somebody turns the hot water faucet on. When you go away on vacation or home for the summer, your standard hot water heater keeps on heating, unless you turn it off. The tankless will not uses any energy under the same conditions.
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It would also save a lot of water I would think as well as saving energy to heat the water. If the water doesn't have to run for a long time you'll save probably a few gallons every time you need hot water.