The location of the heater, not its type, determines whether you could need a circulation system. The advantage of a tankless heater is that it can be installed near the point of use and thus give rapid temperature response. If the heater is going to be installed in the same location that a tank type would have been then if the tank type would have needed a circulator, then the tankless does also, except a tankless is a a bit more complicated and you have to follow the manufacturer's directions to install it.





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