According to energy research done by energy gov if you are using a 40 gallon tank of hot water or less your energy demand is typically less than 50 percent with a tankless water heater compared to a water heater tank.
Tankless water heater vs hot water heater.
Water heaters with tanks.
One of the first things to consider is whether you should get a tank or tankless water heater.
You re not limited to the capacity of a holding tank.
Propane tankless water heaters can typically achieve a hot water flow rate that s three times the flow rate from electric storage or heat pump water heaters.
Tankless water heaters are more energy efficient for your homes because it is not constantly running to maintain hot water.
Often they can be mounted to the wall.
Homeowners with on demand tankless water heaters that use less than 41 gallons or less of hot water each day enjoy between 24 and 34 percent more energy efficiency than storage tank water heaters.
If you use lots of hot water daily around 86 gallons you might enjoy energy efficiency of an additional 8 to 14 percent.
While tankless water heaters run more efficiently than storage tank water heaters replacing a tank water heater with a tankless can be expensive and the payback time can be longer than the warranty.
Tankless water heaters are more compact and can heat up water as you use it.