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According to Energy Star, an international standard for energy efficiency created by the U.S. Environmental Protection Agency (EPA), water heaters are at the second spot among the highest sources of energy usage in the home. That’s why any addition in the efficiency of a water heating system can be a good source of savings. So how do tankless water heaters play into this? Tankless Water Heaters Would it be a good decision to have a Knoxville plumbing company install a tankless water heater into your home? First, here’s how they work: The Department of Energy indicates that this kind of water heater delivers hot water on demand (thus, its other name: demand-type or instantaneous water heater). It does so by heating water directly without the use of a storage tank. When the user turns on the hot water tap, the cold water will run through the pipe and into the heating unit to be heated by an electric element or gas burner. Thus, the water comes out hot.
http://www.theplumbingauthority.com/knoxville-plumbing-what-you-should-know-about-tankless-water-heaters/