Newer "tankless" water heaters heat and deliver water on demand, without storing it. Rather than holding water in a tank, they circulate it through a series of burners or electric coils that heat the water as it passes through... Though tankless units cost more than most conventional water heaters, they're cheaper to operate because energy isn't required to maintain a large tank of hot water 24 hours a day... Because the water heater doesn't store hot water, it never runs out-- unless, that is, the flow surpasses the unit's ability to heat it. If two people take separate showers at the same time, a tankless unit may not be able to handle the flow. Start the washing machine and they're in for a cool shower.
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