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Sophisticated tankless heaters allow you to set the ongoing water temperature to a much more reasonable and safer temperature, closer to the actual temperature you will use the water at, thereby reducing risk of scalding. According to the US. Department of Energy, for each 10°F reduction in water temperature, you can save between 3%-5% in energy costs.
Overheating To ensure a traditional heater refreshes at a reasonable rate, most heaters are set at very high temperatures (130F+). This wastes energy and increases risk of scalding, especially for children and the elderly.
Tankless water heater benefits
Problem with Conventional Tank-Type Water Heater