Water heaters with tanks are a better option for large families since they can store hot water and reduce energy use if.
Tankless water heaters vs tank.
Tankless water heaters if gas fired will save homeowners over 100 annually the longer they remain in service.
Instead they heat water as it passes through the unit using a heat exchanger to rapidly bring it.
Tankless water heaters heat only the water you need when you need it eliminating the need for a storage tank.
It uses high powered burners to rapidly heat water as it runs through a heat exchanger and deliver it directly to your faucets or shower without storing it in a tank.
Either a gas burner or an electric element heats the water.
And there are limits to how much hot water can be produced per minute.
Tankless water heaters heat water directly without the use of a storage tank.
Tankless water heaters are more compact and can heat up water as you use it.
These setups only provide hot water when it is needed.
According to energy gov for homes that use 41 gallons or less of hot water daily demand or tankless water heaters can be 24 to 34 more energy efficient than conventional storage tank water heaters.
They are smaller and more energy efficient than traditional storage tank water heaters but more expensive.