For homeowners and businesses, having a reliable hot water supply is essential—but traditional tank water heaters are bulky, inefficient, and often struggle to meet demand. Tankless water heaters, also called on-demand water heaters, are changing the game. These systems heat water only when you need it, saving energy and space while providing a steady flow of hot water. However, choosing the right model involves more than just picking the highest BTU rating. You need to consider your household’s water usage, fuel type, installation location, and long-term maintenance.

In this guide, we’ll explore everything you need to know: how to size a tankless water heater based on your household’s peak demand, the pros and cons of natural gas versus propane units, indoor vs. outdoor installations, and tips for keeping your system running efficiently for years. By the end, you’ll be equipped with the knowledge to select a high-performance water heater that meets your needs without wasting energy or money.

Key Points Expanded:

• Tankless vs. traditional water heaters: Why on-demand heating is more efficient

• Sizing your system: Calculating gallons per minute (GPM) to meet peak usage

• Fuel considerations: NG vs. LP vs. electric options

• Installation tips: Space, venting, and climate considerations

• Maintenance: Flushing and descaling to ensure longevity