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Tankless Water Heaters, also called Instantaneous or on Demand Water Heaters, provide hot water as it is needed. Traditional storage water heaters produce hot water on standby and causes energy loss that costs you money.
Tankless Water Heaters heat water directly without the use of a storage tank. Therefore, they avoid the standby heat losses associated with storage water heaters. When a hot water tap is turned on, cold water travels through a pipe into the unit. In an electric Tankless Water Heater an electric element heats the water. In a gas-fired or Propane Tankless Water Heaters a gas burner heats the water. Tankless Water Heaters deliver a constant supply of hot water,which saves on energy. There will never be a wait again for the water heater tank to re-heat the water.
A conventional water heater should last about 11 years. On the other hand, tank less water heaters will last around 10-15 years. In either case, regular maintenance will prolong the life of your water heater. One example would be to drain your water heater every 12 months to help remove some of the sediment build up. The hard water in Phoenix will lower the life of most water heaters.
To reduce the risk of scalding and to avoid the risk of running out of hot water, most plumbing companies recommend a temperature setting of 120°-125° F. You do not want your water so hot that you can get burned at its highest setting.