A major component of the efficiency movement in the Untied States is limiting energy waste, and when it comes to hot water heaters, tankless solutions are among some of the best.

Electricity waste can be a massive burden on energy bills. While we would like to think all the electricity we pay for month to month goes directly toward powering our homes, this is simply not the case. Some appliances are built better than others in limiting lost power, while others are simply designed to operate without needing to use as much electricity.

According to the Department of Energy, hot water heating costs are the second most expensive utility expenditures in the U.S. However, the National Renewable Energy Laboratory also noted that in 2009, 12 percent of all hot water used in a typical three-bedroom, two-bathroom home. This means that much of what homeowners is being wasted in what is a major component of a home's monthly bills.

How tankless water heaters minimize waste
Purging is one of the most common forms of waste when it comes to water heating. This occurs when water heat is lost during the time that the liquid is transported to the point where it is used, such as on a shower head or kitchen sink. This can occur for a number of reason, such as sediment build up in pipes. The same NREL report noted that 95 percent of all wasted hot water each year is a result of this process.

However, tankless water heaters are installed at the point of use, meaning that there is less distance between the water heater and where it is actually used. This limits the amount of water that users need to waste before it reaches a temperature that they are happy with. The typical homeowner purges about 2,850 gallons of hot water each year, which is a huge amount of energy that is, literally, going down the drain.

On top of their point-of-use installation, tankless hot water heaters are also designed to only use the amount of electricity that is necessary to heat the water. The amount of energy needed to heat water for the bathroom sink and the amount needed for a shower are very different, so by being able to only use the necessary amount based on the flow rate, you can save even more on your utility bill.