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Q. How does a Rinnai tankless system work?

Conventional water tanks heat and store hot water around the clock. Because of this you are heating and re-heating water, and constantly losing energy up your vent and through the walls of the tank. A tankless water heater only comes on when you start to use hot water, and immediately shuts off when you are done, so you are not wasting energy when you do not need hot water. Tankless water heaters have much more effective heat exchanger and burner systems than conventional tanks. This allows you to utilize a much higher percentage of your energy dollar rather than wasting it up the vent stack of a conventional tank water heater.