How do tankless systems work?
Hot water results from the application of energy into water. Storage systems accomplish this by continuously applying a limited amount of energy to a reservoir of water. When that reservoir is used up, the water is cold until it can reheat. With tankless, the amount of energy needed is applied instantly, and continuously, resulting in never ending hot water. The amount of energy needed to raise the temperature of a gallon is absolute no matter what system is used (you will hear this in the term ‘delta T’ or ‘change in water temperature’). Tankless eliminates the energy used to maintain that hot water while sitting in the tank waiting for use. This is where the efficiency comes into play.