Tankless water heaters are a type of water heating system that provides hot water on demand, without the need for a storage tank. When you turn on the hot water tap, cold water flows through the unit, where it is heated by either gas or electricity. This means you can enjoy a continuous supply of hot water, making it ideal for larger households or simultaneous use in multiple locations. Unlike traditional water heaters, which store a limited amount of hot water, tankless models are more energy-efficient. They only heat water when needed, reducing energy waste and potentially lowering utility bills. Additionally, they typically have a longer lifespan, making them a cost-effective choice in the long run.