When it comes to reducing your hot water heating bill, tankless water heaters are an ideal solution because they can reduce these expenses in three different ways.

It should come as no surprise that hot water can get expensive. Between using expending energy to heat the water and the water itself, these costs can add up. According to the Department of Energy, hot water heating and cooling is the second most expensive utility. Fortunately, there are a number of strategies to limiting your hot water heating expenditure and improve your home or office's energy efficiency such as using a tankless hot water heater. The following are three places where tankless hot water heaters can improve energy efficiency and cut back on your utility bill:

1. Limit the amount of water you use
If you can use only the amount of hot water that's necessary, you can make important strides in improving efficiency. Put simply, the less water you use, the less energy you need to expend heating it. So how does a tankless water heater help?

These pieces of equipment heat water on demand, rather than constantly keeping the water at a specific temperature. This means the heater only uses energy when hot water is called for. As a result, there is no waiting for water to heat up, ensuring all the water you use is warm.

2. Heat smarter
The Department of Energy noted that one of the best ways to limit hot water costs is to turn down the thermostat on your hot water heater. This is more of an issue with hot water tanks, because they generate standby waste as a product of having to keep hot water at a consistent temperature for an extended period of time.

With tankless water heaters you can set the temperature at which you heat the water. This means you can limit the amount of energy the heater expends during the heating process, but the real advantage comes in eliminating the creation of standby waste.

3. Last longer
These benefits are certainly important, but their true advantage is revealed over time. If these results are not realized consistently in the long term, then their overall effects are mitigated. Fortunately, tankless water heaters can last for over 20 years, with hot water tanks topping out around 15 years.

This means that by investing in a tankless hot water heater, you can receive these efficiency improvements for a long period of time.