Tank or tankless water heaters?
This shows the comparison of a tankless (gas) verses a tank water heater. Tankless units with digital connectivity let you adjust the temperature and monitor gas and hot-water usage on your phone. Electric-powered tankless water heaters draw high amounts of electricity, and gas units require ventilation that leads outside. Also, tank-type heaters burn energy (gas or electricity) day and night to maintain the water temperature, regardless of whether or not anyone's using hot water, a phenomenon known as standby heat loss.
They're about 25 percent more expensive 4 Best Under Sink Tankless Water Heater noncondensing heaters, and they create an acidic condensate that has to be neutralized. A flow sensor (2) detects water coming into the heater and sends a signal to the control panel to start producing hot water. While there is nothing inherently wrong with the design of the tank-type water heater, they are incredibly inefficient.
Also, contact your city or town for information about obtaining a permit, if necessary, and about local water heater installation codes. Tankless water heaters are generally more expensive than conventional models up-front, but they can save you more money in energy bills over time and could boost the value of your house. Hot water then exits the heater and travels directly to the faucet or appliance—not to a storage tank.
In the meantime, install a fiberglass insulation blanket around your existing traditional water heater in order to conserve energy, especially if your water heater is in a garage or uninsulated crawlspace. You can also install separate tankless water heaters for appliances - such as a clothes washer or dishwater - that use a lot of hot water in your home.

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