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Yes they are. This is because Tankless water heaters never run out of hot water!
Although they have a higher installation cost, they are much more cost-efficient to run and will improve the water consumption in your household or commercial space.
How much money can you expect to save with a tankless gas water heater?
According to the U.S. Department of Energy, savings froms gas-fired tankless heaters average of $108 in energy costs per year over their traditional tank counterparts, while electric tankless heaters save $44 per year.
What can you expect with a tankless gas water heater?
- As soon as you turn on a tap to get hot water, you will get piping hot water within seconds.
- Hot water is generated on demand rather than being stored in a tank. This means you are more likely to get hot water at a temperature that you enjoy rather than getting luke-warm water.
- Tankless gas water heaters are suitable for high and low pressure water systems.
- It’s typical that when the water is run through the faucet, you will get water running at a cooler temperature as the water pressure increases.
- However, with a tankless gas water heating system, the water heats universally regardless of the water pressure.
- Reduced costs from “Stand-by energy losses” when compared to traditional water tank heaters.
How do tankless gas water heaters work?
Below is an animated gif from Zebra showing how tankless gas water heaters work and their efficiencies.

You can also watch the video below that provides a more in-depth explanation about how tankless water heaters work.
Comparing tankless vs water tank heaters.
Tankless water heater | Water tank heater |
300% more output of hot water | Lower output of hot water |
Small space required for installation. | Large space required for installation |
Higher cost | Lower cost |
Lower water wastage | Higher water wastage |
Propane (Natural) gas tankless water heaters are the most superior solutions available.