A tankless water heater produces hot water only when you need it. When you turn on the faucet, water is heated on the spot as it flows through capillary-like pipes heated by either a powerful gas burner or electric coils. (There are no oil-fired on demand water heaters on the market.) The writer further avers that “by bringing hot water close to where it's needed, you reduce energy loss and increase efficiency by 50% over a conventional hot water tank system.” This allows many households to save on their energy bills, even in small cities like Katy in Texas (TX). It seems that the benefits of tankless water heaters in Katy, TX and other areas of the U.S. outweigh those of traditional water heaters.
http://www.capitalcareplumbing.com/2013/10/13/a-quick-guide-to-the-benefits-of-tankless-water-heaters-in-katy-tx/
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