Yes, according to the U.S. Department of Energy, "homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%-34% more energy efficient than conventional storage tank water heaters. They can be 8%-14% more energy efficient for homes that use a lot of hot water -- around 86 gallons per day" The agency states that these savings can be further increased by having a water heater at every hot water outlet, and by the longer average life expectancy of tankless water heaters when compared to traditional ones which are 20+ years and 10-15 respectively.