Gas-fired tankless water heaters produce higher flow rates than electric ones. Typically, tankless water heaters provide hot water at a rate of 2–5 gallons (7.6–15.2 liters) per minute. However, a tankless water heater's output limits the flow rate. You don't need to wait for a storage tank to fill up with enough hot water. As a result, tankless water heaters deliver a constant supply of hot water.
When a hot water faucet is turned on, cold water flows through a heat exchanger in the unit, and either a natural gas burner or an electric element heats the water.
Tankless water heaters heat water instantaneously without the use of a storage tank.
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