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How Does a Tankless Water Heater Work? Explained!

March 17, 2025

Tankless water heaters, also known as on-demand water heaters, have revolutionized home water heating by providing hot water only when needed. Unlike traditional storage water heaters that continuously heat and store water, tankless systems heat water as it flows through the unit, ensuring energy efficiency and a limitless supply of hot water. 


But how exactly does this technology work, and why should you consider switching to a tankless water heater? In this article, we'll dive deep into how a tankless water heater works, its benefits, and how Mike's Plumbing and Rooter Service can assist with installation and maintenance.

Key Takeaways

  • Tankless water heaters heat water only when needed, reducing energy waste compared to traditional tank models.
  • As long as there is demand, the unit will continuously heat water, making it ideal for large households.
  • These compact units take up significantly less space than traditional water heaters.
  • With proper maintenance, tankless water heaters can last over 20 years, outliving conventional tanks.
  • Proper sizing and installation by experts like Mike's Plumbing and Rooter Service ensure optimal performance.

How Does a Tankless Water Heater Work?

Step 1: Water Flow Activation

When you turn on a hot water tap, cold water enters the tankless unit through a dedicated inlet pipe. A built-in flow sensor detects water movement and signals the system to start the heating process.



Step 2: Heating Process

Depending on the model, the unit will activate either a gas burner or an electric heating element. These components quickly heat the water as it passes through a heat exchanger, raising its temperature almost instantly.


Step 3: Hot Water Delivery

The now-heated water exits the unit and travels to the open tap or appliance that requires hot water. Since there is no storage tank, the unit continues heating water as long as the faucet remains open, providing a continuous supply.


Step 4: System Shutoff

Once the tap is turned off, the flow sensor detects the cessation of water movement, and the unit shuts down, preventing unnecessary energy consumption.

Benefits of Tankless Water Heaters

1. Energy Efficiency

Traditional water heaters store hot water in a tank, leading to standby heat loss, where energy is wasted as the water cools and is reheated periodically. Tankless systems eliminate this waste by heating water only when needed, significantly reducing energy bills.



2. Unlimited Hot Water Supply

Since tankless water heaters heat water on demand, they provide a continuous flow of hot water, making them ideal for families who use multiple hot water appliances simultaneously.


3. Space-Saving Design

Tankless units are compact and can be mounted on walls, freeing up valuable storage space compared to bulky traditional tanks.


4. Longer Lifespan and Low Maintenance

A well-maintained tankless water heater can last over 20 years, whereas traditional tank heaters typically last 10-15 years. Regular descaling and maintenance prevent mineral buildup, ensuring efficiency and longevity.


5. Environmentally Friendly

By consuming less energy and reducing greenhouse gas emissions, tankless water heaters contribute to a more sustainable home environment.

How Mike's Plumbing and Rooter Service Can Help You

Choosing the right tankless water heater and ensuring professional installation is crucial for optimal performance. Mike's Plumbing and Rooter Service offers expert installation, maintenance, and repair services to homeowners looking to upgrade their water heating systems.


Why You Should Choose Mike's Plumbing and Rooter Service

1. Expert Installation

Improper installation can lead to inefficiencies and even potential hazards. Our team ensures correct sizing and placement for maximum efficiency and safety.


2. 24/7 Emergency Repairs

Water heater issues can arise unexpectedly. Our emergency plumbing services ensure your home’s hot water system is always operational.


3. Routine Maintenance Services

Regular maintenance extends the lifespan of your tankless water heater and keeps it running at peak efficiency. We offer professional descaling and system check-ups.


4. Licensed and Insured Technicians

Our team consists of trained, licensed, and insured professionals with extensive experience handling tankless water heaters.


5. Customer Satisfaction Guarantee

We stand by our work and offer guarantees on all services to ensure customer satisfaction.

Conclusion

Tankless water heaters are a smart investment for homeowners looking for energy efficiency, an endless hot water supply, and a space-saving design. However, proper installation and maintenance are key to enjoying their full benefits. 


Mike’s Plumbing and Rooter Service provides expert services to ensure your system operates efficiently and reliably. If you're considering switching to a tankless water heater, contact us today to schedule a consultation.

Frequently Asked Questions

  • Are tankless water heaters more expensive than traditional ones?

    Yes, tankless water heaters typically have a higher upfront cost. However, they save money in the long run through reduced energy bills and a longer lifespan.

  • Can a tankless water heater supply hot water to an entire house?

    Yes, but proper sizing is crucial. Large households may require multiple units or a high-capacity model to meet demand.

  • Do tankless water heaters work during a power outage?

    Gas-powered models require electricity for ignition and controls, so they won’t function during an outage unless paired with a backup power source.

  • How often should I descale my tankless water heater?

    Annual descaling is recommended, especially in areas with hard water, to prevent mineral buildup and maintain efficiency.

  • Can I install a tankless water heater myself?

    Professional installation is recommended to ensure proper sizing, safe operation, and compliance with local plumbing codes.

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