How does a gas hot water system work?

In a storage tank gas hot water system, a gas burner at the tank’s base heats water stored in a tank, maintaining a constant supply; whereas, a tankless or continuous flow gas hot water system heats water on demand using a gas burner activated by a flow sensor, providing hot water instantaneously without the need for a storage tank. Both systems rely on natural gas for heating, with the storage tank type storing pre-heated water and the tankless type eliminating standby heat loss, offering options based on factors such as energy efficiency, space considerations, and hot water demand.