In this day in age of $3.00 a gallon gas, electrical companies raising rates, oil line disruption and global instability energy costs are by no mean predictable.  The United States working with the DOE is trying to get American to save on their electrical use both for their own good and for the good of the planet.  Tank water heaters are constantly using electricity even it you are not using it. Think about it running a stove all day until you are going to use it or leaving your TV on until you are ready to use it. No one would do this but millions of home owners let their tank run all day without even thinking about it and wonder why they have a $500 or higher electric bill. Because of this inefficient process, a 60-gallon tank only has 40 gallons of useable hot water. The other 20 gallons are lost as cold water is added to the tank during the usage process.


In addition, a Conventional tank heater is constantly radiating heat (loss), which also contributes to the re-heating rate and energy consumption of the tank. This type of heat loss is often referred to as "stand-by" heat loss. By eliminating stand-by heat loss alone, energy consumption can be reduced from 20 to 30%
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Demand Water Heaters

O e, a bacterial respiratory disease similar to pneumonia. Thousands of cases of Legionnaire's disease occur in the U.S. each year, and up to 15% of the cases are fatal. Most often, smokers, the elderly and those with chronic respiratory problems or compromised immune systems.

A 1984 study (Ciesieki et al) reported that the bacterial cause of Legionnaire's disease (Legionelia pneumophila) is capable of colonizing in hot water systems maintained at 115° or lower.
The 1995 ASHRAE (American Society of Heating, Refrigerating and Air Conditioning Engineers) Applications Handbook notes that "segments of service water systems in which the water stagnates (e.g., shower heads, faucet aerators, and certain sections of storage-type water heaters) provide ideal breeding locations" for the bacteria.ne health concern associated with traditional water heaters is Legionnaire's disease