With energy costs rising, energy efficient appliances are becoming more important to homeowners. One of the least energy efficient appliances in the average American household is the hot water heater. It takes a lot of energy to heat water and most water heaters use a storage system which heats water whether or not the hot water is being used. Powerstar water heaters only heat water when it is in use. There is no storage tank to keep at a constant temperature. Tankless heaters heat water instantaneously on demand.

Powerstar water heaters can save money by cutting the cost of providing hot water to the house. Powerstar water heaters have a 95% energy efficiency rating. Powerstar water heaters use electric instead of gas to heat water because electricity is the most efficient method of heating water and it is also the faster way to heat water. An added advantage to a tankless water heater is a savings in space which can be considerable. Storage type water heaters require space for their large tanks. Tankless heaters can be installed almost anywhere because there is no need to take up space with a tank.