Tankless water heaters will help set your home apart from others if you decide to sell. With the green revolution in full force, many home seekers favor green-friendly homes over those with conventional, energy-wasting appliances and features.

What Exactly are Tankless Water Heaters?

Tankless water heaters are a new product in North America. While they have been used in Europe and Asia for over 20 years, they only broke into the US market within the past decade. They are becoming increasingly popular because they save homeowners both money and energy. Tankless water heaters are small units, usually mounted on a wall. They work on gas or electricity to heat your water as needed.

With a tankless water heater, you'll never run out of hot water. The water is heated as it passes through the unit's heat exchanger. When you open the hot water tap, the unit begins to heat the water within a few seconds. It continues to deliver hot water at a constant temperature for as long as you need it.

Types of Tankless Water Heaters

There are three types of tankless water heater applications: single-point application, multi-point application and whole-house application. The single-point is used just for one fixture, such as a kitchen sink. The multi-point is used in a room where more than one application is needed, such as in a bathroom (sink and shower). The whole-house application is used when a single heater heats water for the entire house. The installation of even one single-point tankless heater can make your home more attractive to potential purchasers.

Safety

Home seekers with young children are drawn to tankless water heaters because of the temperature control feature. Unlike conventional tank water heaters, it's simple and convenient to adjust the water heat settings. This is a safety feature, as it can prevent scalding accidents.

Space

One reason tankless water heaters are popular in Europe and Asia is that they take up less physical space than conventional water heaters. When a traditional hot water tank is not required, space is freed up in the basement or garage. Home seekers will notice the additional space created by a tankless water heater.

Location

Your location will determine how much of a value a tankless water heater can be. If you live in a colder climate, the incoming water will be colder, and a greater rise in temperature will be needed to heat the water. In warmer regions, such as in the southwest, homeowners are seeing significant energy saving benefits from installing tankless water heaters. In some households, the savings can be as much as $50 a month.

Tax Credits

A US federal tax credit is available to homeowners who install an approved tankless water heater by December 31, 2010. The tax credit is 30% of the full purchase price, up to a maximum of $1,500. Contact your state energy office or local utility service providers for more information about tax credits and rebates in your area.

Cost

The cost to install a tankless unit can vary greatly, but generally ranges from $2,000-$4,500, installed. Installation should be completed only by licensed plumbers who have experience working with tankless units.

-- by Marcy Tate, home improvement writer at Networx.com.