A tankless gas hot water heater works by heating the water as it enters the house. A tankless gas water heater doesn't store hot water and isn't constantly keeping large amounts of water hot. This results in energy savings of from 14% to 50% depending on the application.
Think about the hot water use for your application before selecting a tankless gas water heater. Add up the number of sinks, showers or appliances involved. This inventory will be important as you compare the capabilities of different tankless water heaters.
Enough Fuel?
Determine the type of gas service you will be using with your tankless gas water heater. Natural gas and propane are both acceptable fuel options. Your propane tank may not have the capacity to power a tankless water heater in a high demand situation. Always check with the manufacture to determine the fuel needs of a tankless gas water heater.
Venting Your Exhaust (Or Frustration)
An indoor tankless gas water heater will require venting to carry away combustion exhaust. Although most tankless water heater manufacturers sell exhaust kits, one size usually doesn't fit all. Carefully measure your venting route to determine what type and how much hardware you'll need.
Be sure to check local building codes for venting requirements. Consider hiring a professional if you're unsure about your ability to handle this part of the installation
Right Size Your Tankless Water Heater
Your specific needs will determine which tankless gas water heater is right for you. A single outlet application will call for a much smaller tankless water heater than a multi-outlet or whole house application. Most vendors offer a range of tankless water heaters to meet various needs.
Running Hot Or Cold
The incoming water temperature has a major effect on the efficiency of a tankless gas water heater. If you live in a cold weather climate, a larger capacity tankless water heater will offset the cold incoming water. In warmer climates, a lower flow rated tankless water heater will be sufficient.