Electric tankless hot water heaters are powered by electricity that heats the water without using a reserve tank. You can also call as instant water heaters or on-demand water heaters, since water is heated only when needed. In some cases, this may be cost efficientt as the hot water do not have to continually reheat until use.

In addition to energy savings, these units also saves space. Models with large capacity can be used as all hot water sources in a home, although there may be some loss in heating if multiple hot water appliances running at the same time. However, electric tankless hot water heaters conserve much more energy than a tank type.

The keys of electric tankless hot water heaters are heating elements located inside the pipes. The elements are heated to a high level and directly touch the water, so that the hot water coming out nearly instantly. In most cases, hot water comes out much faster than a traditional water heater does. This is because there is no need to wait for cold water to turn hot before hot water starts to flow.

Electric tankless hot water heaters occupy a much smaller space than traditional ones. This is important when living space is limited, and it is likely why electric tankless hot water heaters have become popular in Europe and other similar areas in which most people live in aparment building. The biggest drawback of Electric tankless hot water heaters is the initial cost. The installation expense, and any adaptation of the plumbing, they can be quite expensive.