In most cases, people use tank water heaters. Water is stored in a tank with a specified capacity, usually between 15 and 60 gallons. As a result, you will always have hot water up to that volume. Obviously, there are drawbacks. When you don’t need hot water, you pay to heat it constantly. When you have guests, for example, you may exceed the capacity of your tank at any given time, leading to shortages of hot water. Their installation costs are low, but their operation costs are high.
Compared to tank water heaters, tankless water heaters only heat water as needed. On your sink or shower, these valves turn on when you turn on the hot water valve. Due to this, less energy is used to heat your water, although you’ll have to wait for it to heat up.