Installing a tankless hot water heater offers several benefits, including energy efficiency, space savings, and an endless hot water supply. Unlike traditional tank water heaters, which constantly heat and store water, tankless heaters heat water on demand, reducing energy consumption and lowering utility bills. Tankless heaters are also compact and can be installed in smaller spaces, freeing up valuable floor space. They also provide a continuous hot water supply, eliminating the risk of running out during peak usage times.