Tankless hot water heaters have been used for years in Europe and Asia, but are only now becoming popular in the United States. Why? Because they save energy, and cost less to operate than a traditional tank water heater.

Electric tankless water heaters run of off, you guessed it, electricity. They are extremely efficient, but can cost more than other tankless options out there because electricity is usually more expensive than other fuels, like natural gas.

Gas tankless water heaters can run off of either propane or natural gas. They may cost more to install, but have a lower monthly cost to operate.