A conventional tank constantly heats stored water, is good for high usage demands and is economical. It can be stored in a closet, basement or garage and has a capacity of up to 80 gallons.
A tank-less water heater has lower operating costs, uses less space and can reduce energy consumption by as much as 30%. It can also provide continuous hot water at a precise temperature; however, it does require more upfront investment and may need venting.