Hot water is essential for everyday comfort, and modern homeowners are increasingly turning to energy-efficient solutions to meet their needs. One popular option is the electric tankless water heater, a compact and efficient alternative to traditional tank systems. But what exactly is an electric tankless water heater, and how does it work?
At Michigan HVACR, we help homeowners understand their water heating options so they can make informed decisions. In this guide, we’ll explain how an electric tankless water heater works, its benefits, types, and whether it’s the right choice for your home.
What Is an Electric Tankless Water Heater?
An electric tankless water heater is a system that heats water only when it’s needed, rather than storing hot water in a tank. Because it operates on demand, it’s also commonly referred to as an electric on-demand water heater or electric instant water heater.
Unlike traditional tank water heaters that continuously heat and reheat stored water, a tankless electric hot water system activates only when a hot water tap or appliance is turned on. This design reduces energy waste and provides a steady supply of hot water without the limitations of tank capacity.
How Does an Electric Tankless Water Heater Work?
The operation of an electric tankless water heater is simple yet highly efficient:
- Water Flow Detection
When you turn on a hot water faucet, cold water flows into the unit. Sensors inside the system detect the water movement instantly. - Heating Elements Activate
Powerful electric heating elements turn on immediately, heating the water as it passes through the unit. - Instant Hot Water Delivery
The water is heated to the desired temperature within seconds and delivered directly to your faucet or appliance. - System Shuts Off Automatically
Once the hot water tap is turned off, the system stops heating, conserving energy.
Because water is heated only when needed, there’s no standby heat loss—one of the biggest advantages of a tankless electric hot water system.
Types of Electric Tankless Water Heaters
Whole House Electric Tankless Water Heater
A whole house electric tankless water heater is designed to supply hot water to multiple fixtures at once. This type of system is ideal for homes with moderate water usage and properly sized electrical capacity.
Benefits include:
- Continuous hot water throughout the home
- Compact design compared to tank systems
- Improved energy efficiency
Proper sizing and professional installation are crucial to ensure consistent performance.
Point-of-Use Electric Tankless Water Heater
A point-of-use electric tankless water heater is installed near a specific fixture, such as a sink or shower. These units are smaller and provide instant hot water exactly where it’s needed.
Common uses include:
- Guest bathrooms
- Kitchen sinks
- Garage or basement fixtures
Point-of-use systems reduce wait time and minimize heat loss from long plumbing lines.
Benefits of an Electric Tankless Water Heater
1. Energy Efficiency
Because an electric tankless water heater only heats water when needed, it consumes less energy than traditional tank systems. This efficiency can lead to lower utility bills over time.
2. Endless Hot Water
With no storage tank to empty, you won’t run out of hot water during long showers or back-to-back appliance use—as long as the system is properly sized.
3. Space-Saving Design
Electric instant water heaters are compact and wall-mounted, making them ideal for homes with limited space.
4. Longer Lifespan
Tankless systems typically last 15–20 years, significantly longer than traditional tank water heaters.
5. Reduced Risk of Leaks
Without a large storage tank, there’s less risk of leaks or water damage caused by tank failure.
Is an Electric Tankless Water Heater Right for Your Home?
While electric tankless systems offer many benefits, they may not be ideal for every household. Consider the following:
- Electrical capacity – Some homes may require electrical upgrades.
- Hot water demand – Large families with simultaneous usage may need multiple units or a larger system.
- Upfront cost – Installation costs can be higher than traditional tanks, but long-term savings often offset this.
A professional assessment from Michigan HVACR ensures the right solution for your home’s needs.
Installation Considerations
Installing an electric tankless water heater requires professional expertise. Important factors include:
- Electrical panel capacity
- Proper unit sizing
- Code compliance
- Safe wiring and mounting
At Michigan HVACR, our licensed technicians ensure your system is installed safely, efficiently, and according to local Michigan building codes.
Maintenance and Care
Electric tankless water heaters require less maintenance than tank systems, but routine care is still important:
- Periodic descaling to remove mineral buildup
- Inspection of heating elements
- Checking electrical connections
Regular maintenance ensures long-term performance and efficiency.
Why Choose Michigan HVACR?
Michigan HVACR provides expert guidance, installation, and service for electric tankless water heaters. Our team offers:
- Honest recommendations
- Professional installation
- Energy-efficient solutions
- Reliable ongoing support
We help you enjoy consistent hot water with confidence.
Read More: Benefits of Replacing an Old Tank Water Heater
Frequently Asked Questions (FAQs)
1. How long does an electric tankless water heater last?
Most systems last 15–20 years with proper maintenance.
2. Can an electric tankless water heater supply my whole house?
Yes, a properly sized whole house electric tankless water heater can handle multiple fixtures.
3. Are electric tankless water heaters energy efficient?
Yes, they are highly efficient because they heat water only when needed.
4. Do electric tankless water heaters need maintenance?
Minimal maintenance is required, mainly descaling and inspections.
5. Is professional installation necessary?
Yes. Proper electrical connections and sizing are critical for safety and performance.