A tankless electric water heater system including a heating chamber having an inlet at a first end and an outlet at a second end, a heating element connected to the heating chamber, a first temperature sensor disposed near the first end of the heating chamber, a second temperature sensor disposed near the second end of the heating chamber, a flow sensor configured to detect a flow of water and disposed near the heating chamber, and a controller connected to the first and second temperature sensors, the flow sensor, and the heating element. The controller is configured to have a set point temperature, to detect temperature and flow data from the first and second temperature sensors, and the flow sensor, and to provide as output a power setting to the heating element.