At this point, you've made the decision – you're going with an electric tankless water heater. With a flooded market, the decision can become muddled in the process. Advertising is misleading and doesn't always point out the right things that consumers need to know. Don't get thrown off by bells and whistles – here are the must haves for an effective electric tankless water heater.

Grade 'A' performance a must
Just as cars are moving electric for good reason, so are tankless water heaters. Electric tankless water heaters are one third the size of gas tankless water heaters and serve great as point-of-use products. This means you can put them under your sink or near your shower for extra comfort in knowing your water will be fully heated, but also to reduce the strain you're putting on a whole house water heater system. Point-of-use also eliminates the need to run long hot water pipes throughout the house. Buying a small electric tankless water heater is essential for those who are looking to reinforce their current hot water system.

Electric tankless water heaters remain a step above the competition in terms of performance.

Energy efficiency is key
According to the Department of Energy, just by switching to a tankless water heater consumers can make their households anywhere from 8-34 percent more energy efficient than if they had a storage water heater. Energy efficiency is just the rate at which a product uses resources. Having a higher energy efficiency means that the water heater isn't gobbling up energy that translates to nothing more than more money on a utility bill.

Don't settle for anything less than 99 percent energy efficient electric tankless water heater models. It would be a crime to steal money from yourself. As an example, according to the DOE a gas storage water heater has an energy efficiency between 54 and 65 percent – a steep drop off from an electric tankless water heater. Making the switch alone could save $100 or more per year on your utility bill, as the DOE pointed out.

Don't let the water scald
It is essential to purchase an electric tankless water heater that includes a thermo optical sensor. This technology makes sure that the temperature stays the same and doesn't spike at the faucet. With 34 percent of all burn admissions in hospitals between 2003-2012 coming from scalds, according to the American Burn Association, this is something that will help stop the trend. Sleep safe knowing that your children are safe because your electric tankless water heater is hard at work.