Tankless or on-demand Water Heaters have several advantages over old-fashioned tank heaters. One of the biggest advantages is perhaps cost. In the first place, most of these heaters will come with a special federal tax rebate of $300 as part of a initiative for people to go green. In addition, they save money on your gas and heating bills throughout their life span, which is 5 or even 10 years longer than older tank heaters. Heating water can add up to as much as a quarter of your monthly energy bills, and depending on the energy factor you can save up to twenty percent on Gas usage on your energy bills, if you choose a Gas heater.And that in fact is another advantage. Homeowners can choose between Natural Gas, Propane, Electricity, and in some places even Solar power to heat water with a tankless heater. Whichever of these options you choose depends on several factors, including what’s easier to assemble in your home, if you live in an area that has propane service rather than natural gas, and how much each option would cost. In some places for example it’s much cheaper to use Natural Gas than Electricity. Assembly itself is pretty easy, and since they’re much smaller than a large tank, they can be placed on walls or even outdoors if the proper precautions are taken, such as an antifreeze kit for those who live in colder climates.The biggest advantage is simple: You’ll never run out of hot water. Unlike a tank heater, these don’t store a certain amount of water to be heated. They heat water as it travels through the heater, which means as long as you need hot water, the heater will keep heating it for you. Make sure you know how much water you need to heat on a regular basis before choosing what size of heater you’ll need.