Tankless heaters do not store hot water in a tank but rather heat water on demand as it passes through the unit, eliminating the need for a bulky tank and providing endless hot water. Secondly, tankless heaters only heat water when needed, avoiding the energy losses associated with constantly maintaining a tank full of hot water. Finally, tankless heaters are typically more compact, saving valuable space. It’s important to consider your household’s hot water needs and consult a professional to determine which option is best for you.