# Using Tankless Water Heaters to Provide On-Demand Hot Water > Using tankless water heaters is an option for those who would like to see a little more savings on your energy bill. Find out how they work to save your money. [![tankless water heater](https://bc.rodenhiser.com/wp-content/uploads/2014/04/running-shower-head-300x200.jpg)](http://shutterstock)Heating water is expensive. It is always going to use a lot of energy to heat the water in your home. However, there are some systems that can make this process much more efficient. Using tankless water heaters is an option for those who would like to see a little more savings on your energy bill. In order to understand why, we have to look at how the typical storage water heater works. [![tankless water heater](https://bc.rodenhiser.com/wp-content/uploads/2014/04/running-shower-head-300x200.jpg)](http://shutterstock) No matter how [insulated](https://bc.rodenhiser.com/rodenhiser-blog/insulating-the-water-heater-metrowest-home-energy-savings.html) your storage tank water heater, it's still releasing some heat into the surrounding room and you need to spend more energy to keep it hot. Tankless water heaters instead heat the water up as you begin to use it. The hot water arrives without having the time to sit and lose its heat. Depending on your water consumption, using tankless water heaters can be over 20% [more efficient](http://www.energy.gov/energysaver/articles/tankless-or-demand-type-water-heaters) than a storage tank water heater. Here are some other things to keep in mind. ## Which type do you need? You can install gas-powered water heaters that will help the entire house. Also available are smaller electrical systems that will provide enough water for just one appliance. Both can help, but it's good to have some idea about what you're looking for. ## Installation Most homes are set up for a storage tank water heater. Installing a different system can be an expensive hassle with typical installation costs far above that of a storage water heater. ## Flow Rate Using tankless water heaters can mean you don't get enough hot water at a time. Without a storage tank as a backup, taking a hot shower and running a dishwasher at the same time can be difficult. These water heaters can be supplemented with other systems or more than one tankless water heater can be used, but it's important to be aware of some of the challenges. If you have questions about using tankless water heaters or if you're looking for other ways to make your home more [energy efficient](https://bc.rodenhiser.com/rodenhiser-blog/heat-loss.html), consider [Rodenheiser Plumbing, Heating, and Air Conditioning](http://rodenhiser.com/call-rodenhiser.html). 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Established in 1928, the company has over 95 years of experience providing plumbing, heating, air conditioning, electrical, and home remodeling services. Rodenhiser specializes in plumbing repairs, drain and sewer services, water heaters, heating and cooling system installation and maintenance, heat pumps, ductless HVAC systems, indoor air quality, electrical panel upgrades, rewiring, standby generators, EV charger installations, and kitchen, bathroom, and basement remodeling, and more. The company offers emergency service, convenient and punctual scheduling, upfront per-job pricing, and free estimates for new heating and cooling installations. All work is backed by written warranties and a satisfaction guarantee. Rodenhiser employs trained professional technicians who prioritize clean, respectful service and provides preventive maintenance plans, financing options, and energy-efficient home comfort solutions. 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