Imagine this: With a water heater compact enough to fit in a suitcase, you get the same – or even more – amount of hot water as with a conventional boiler. And the best part is, a three to four-person family in Germany can save €280–360 every year with current electricity prices of approximately €0.40/kWh.

Why make the switch?
Although traditional water heaters are currently the most widespread technology, a market analysis by the global research company Technavio shows that the share of tankless water heaters is growing slowly but steadily. The reason is simple – they are particularly energy-efficient. Since hot water supply in European households accounts for the second-largest portion of electricity and energy costs after heating and cooling, this characteristic makes tankless water heaters particularly interesting.
The big change
However, switching from a boiler to a tankless water heater is not entirely straightforward. Often, water pipes need to be adjusted, and in some cases, electrical or gas connections also need to be expanded to ensure the necessary power.
In many German homes, existing electrical lines are designed for lower loads. Therefore, it may be necessary to:
-
renew the fuse box and electrical distribution.
-
install lines and fuses with higher load capacity.
-
obtain approval and connection to the power grid from the local energy provider (e.g., Stadtwerke).
If your old boiler has reached the end of its life anyway and you want to save space and energy, a tankless water heater is definitely worth considering.
The most important differences
Tankless Water Heater
As the name suggests, tankless water heaters do not have a hot water storage tank. Instead, water is heated as it flows through the device via a heat exchanger. This happens very quickly and efficiently – either with electricity, natural gas, or propane.
Water is only heated when it is actually needed. This eliminates the so-called standby losses that occur with traditional water heaters.
A whole-house tankless water heater can be wall-mounted to save space, making it ideal for small apartments. The units are available in various sizes, matched to individual hot water needs.
Traditional Water Heater
A household hot water tank usually has a volume of 110 to 230 liters (approx. 30–60 gallons), with 190–200 liters (approx. 50 gallons) being the most common. The size you need depends on the number of people in the household and your hot water consumption – your installer can calculate this precisely.
These boilers (operated with electricity, gas, oil, or propane) keep the water constantly at temperature. This means you pay for the water to be heated continuously – even when it is not being used.
If the hot water heater is in the basement, its space requirement is usually hardly noticeable. If there is no basement, it often has to be placed in a storage room or closet – which can quickly become very cramped.
Conclusion
Whether you want to replace your old water heater or set up an efficient hot water system for your new home – a tankless water heater offers significant advantages: space-saving, energy-efficient, and flexible in use. Especially for households with high hot water demand or apartments with limited space, switching to a tankless water heater is worthwhile.
Consult your installer for advice on the appropriate size and optimal installation before installing a hot water heater or a tankless water heater. This way, you not only enjoy instantly available hot water but also save electricity costs in the long run. A tankless water heater is therefore not only the modern solution for your home but also an investment in comfort and sustainability.

