| Tankless water heaters provide instant water | | | | Owing to the ongoing energy crisis and the |
| heating instead of acting as a storage unit. It | | | | demand of energy efficient products certain |
| works by heating the water as it flows through | | | | incentives are normally available for the purchase |
| the pipes of the unit. These water heaters are | | | | of tankless heaters. These incentives can come in |
| also referred to as on demand heaters. | | | | the form of either tax credits or rebates or in |
| There are two types of tankless water heaters: | | | | some cases, both. However it is highly advisable |
| electric and gas. Electric water heaters heat cold | | | | to check with the local utility or gas company, |
| water via an electric element as it passes through | | | | since many companies have attractive rebates on |
| the unit. In a similar manner gas heaters heat | | | | tankless water heating solutions. Additional tax |
| incoming water via a gas burner as it enters the | | | | credits can be made available via the federal |
| gas fired unit. Both electric tankless water heaters | | | | government. It is absolutely necessary to make |
| and gas tankless heaters have certain advantages. | | | | sure that your electric tankless water heating |
| Gas heaters are generally utilized for entire house | | | | system qualifies for tax credits. |
| applications where as electric ones are often | | | | In order to qualify for tax credit, the tankless |
| utilized for points of use applications like kitchens | | | | water heater needs to meet the following criteria: |
| or lavatories. | | | | - Natural Gas, propane or oil heaters must have |
| There are three prime advantages which tankless | | | | an energy factor of 8.0 or above. This is over 33 |
| water heating system have. The major | | | | percent more efficient than the current federal |
| advantage is that there is endless hot water so | | | | standard. |
| you will never run out of it. Tankless heaters are | | | | - Electric heat pump heaters must have an |
| energy saving which is another main advantage | | | | energy factor of at least 2.0. This is over twice |
| and help reduce your monthly gas bills by a | | | | as efficient as the current federal standard. |
| tremendous amount. Many people consider these | | | | A tax credit should not be confused with an |
| water heaters as being eco friendly. Also, because | | | | instant rebate. Unlike an instant rebate you don't |
| of its energy efficiency factor and moreover its | | | | receive a tax credit when you purchase your on |
| use of hot water on demand instead of storing | | | | demand heater. However, a tax credit is claimed |
| large volumes of water, each model is equipped | | | | on your federal income tax form at the time of |
| with its own energy star rating. Another useful | | | | filing your taxes. Subsequently, this reduces the |
| advantage of on demand water heaters is that | | | | amount of income tax to be paid. This is far |
| they are extremely space saving. Most | | | | superior to a reduction as a tax credit is a direct |
| manufacturers offer models which can be installed | | | | reduction to the taxes you owe instead of |
| indoors and on an exterior wall however you can | | | | lowering your taxable income in the case of a |
| also find some units which are designed for | | | | reduction. So do your pocket some good while |
| outdoor use and they can be recessed between | | | | helping to save the planet by purchasing a tank |
| the studs for greater concealment. | | | | less water heating system. |