Tankless electric water heaters are one of the two types of tankless water heaters, the other being tankless gas water heaters. A tankless water heater is a compact home appliance that provides hot water whenever needed without storing the water. Cost effectiveness, easy installation, energy efficiency, less maintenance, longer equipment life, and unlimited supply of hot water are the main advantages. Gas, propane, and electricity are the prime heat sources for tankless water heaters.

The tankless electric water heater usually has more than one heating element and these elements provide a high heat output. Tankless electric water heaters require less energy. Further, they do not store water and heat the water instantly as it flows through the unit.

Tankless electric water heaters are available in two different models: flow-controlled and thermostatic. The flow-controlled tankless electric water heaters are designed in such a way that they can be fed only with cold water. But, on the other hand, tankless electric water heaters with thermostat feature can be fed with both hot and cold water, and they keep the water temperature within a safe limit.

At present, a range of tankless electric water heaters coupled with the most sophisticated technology and state of the art features are available in the market. Some of them are Ariston Hot Water Heaters, PowerStar AE125 Electric Whole House Tankless providing up to 3.5 gallons per minute, and PowerStar AE12 an electric tankless water heater with a sink and a thermostatic control. All these tankless electric water heaters are used both in commercial and residential settings. In a residential setting, they are well suited for kitchen sinks and laundry areas.

Disadvantages of tankless electric water heaters are that they require a lot of electric power. Further, they cannot produce high flow rates, which results in the failure to supply adequate water for simultaneous, multiple purposes.