How Tankless Coil and Indirect Water Heaters work.
Tankless coil and indirect water heaters use a home’s space heating system to heat water. They’re part of what’s called integrated or combination water and space heating systems.
How They Work
A tankless coil water heater uses a heating coil or heat exchanger installed in a main furnace or boiler. Whenever a hot water faucet is turned on, the water flows through the heat exchanger. These water heaters provide hot water on demand without a tank, like a Tankless water heater, but because they rely on the furnace or boiler to heat the water directly, tankless coil water heaters work most efficiently during cold months when the heating system is used regularly. That’s why they can be an inefficient choice for many homes, especially for those in warmer climates.

Indirect water heaters offer a more efficient choice for most homes, even though they require a storage tank. An indirect water heater uses the main furnace or boiler to heat a fluid that’s circulated through a heat exchanger in the storage tank. The energy stored by the water tank allows the furnace to turn off and on less often, which saves energy. Therefore, an indirect water heater is used with a high-efficiency boiler and well-insulated tank can be the least expensive means of providing hot water.
Indirect systems can be fired by gas, oil, propane, electric, solar energy, or a combination of any of these. Tankless systems are typically electric or gas-fired. Also, these integrated or combination water heating systems not only can work with forced air systems but also with hydronic or radiant floor heating systems.
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