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How do Tankless Water Heaters Work?

Naked Gas Tankless Water Heater
Tankless Water Heaters

1. When a hot water tap is opened at the low flow of 1/2 or 3/4 gallon per minute*, the cold water enters the heater and triggers the heating elements or burners to turn on. Your hot water tap acts as an ignition key for the energy used to heat the hot water you need.

2. The water is then heated as it flows through the heating elements or heat exchanger.

3. As you change the water flow, a water valve or thermostat controls the heating elements or burner flame to maintain a constant temperature. The amount of energy used is always proportional to the volume of hot water being used.

4. The water temperature can be adjusted to produce outlet temperatures ranging from 100° to 140°F.

5. When the hot water tap is turned off, the system shuts down.

* AquaStar 125 Models require a 1/2 gallon activation and the AquaStar 2400ES / 2700ES and Takagi T-K3 require a 3/4 gallon activation.

Tank Water Heaters
A diagram of a typical hot water storage tank heater


1. When a hot water tap is opened, heated water is drawn off the top of the tank. Cold water is fed into the bottom of the tank to replace the outgoing hot water.

2. The incoming cold water triggers the tank's electric heating element, a gas burner or an electrical coil.

3. The water is heated for as long as necessary to bring the entire tank back up to the preset temperature.

4. If demand surpasses the tank's storage capacity, you must close the tap and wait until the tank reheats all the water.

5. Stored hot water loses heat through the side walls and up the flue pipe (if it's a gas heater). As the water temperature drops, the heater kicks on to reheat the water again over and over.

6. Overall, a very inefficient system.





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