Best Water Heater for House – 2025 Reviews

Tankless water heaters heat water on-demand, meaning they only use energy when you need hot water—this can save you up to 60% on utility bills. They’re compact, wall-mounted, and provide endless hot water, but they require a robust electrical system and might struggle in very cold climates.

Traditional tank water heaters store and preheat water, so they’re ready when you are. They’re often more affordable upfront and easier to install, but they can run out of hot water and take up more space. For most modern homes, tankless models offer better efficiency, but tanks are still a solid choice for budget-conscious buyers or smaller households.

Getting the size right is crucial—too small, and you’ll face cold showers; too large, and you’re wasting energy. For tankless models, look at the flow rate (GPM) and power (kW). A 18-24kW unit with 4-5 GPM is ideal for 2-3 bathrooms, while 27kW+ handles larger homes. Check your groundwater temperature; colder climates need higher kW for the same flow.

For tank water heaters, capacity in gallons matters. A 40-50 gallon tank suits families of 3-4, but point-of-use tanks (10-20 gallons) work for single applications. Always consider peak usage times—like mornings when everyone showers—to avoid shortages.

Water heating can account for up to 20% of your home’s energy bill, so efficiency is key. Tankless heaters are 99% efficient because they only heat water when needed, while tanks maintain temperature constantly, leading to standby heat loss. Look for self-modulating technology that adjusts power based on demand, and check for certifications like ETL or Energy Star.

In the long run, tankless models often pay for themselves through lower bills, but weigh this against higher installation costs if electrical upgrades are needed.

Tankless water heaters are wall-mounted and 90% smaller than tanks, perfect for tight spaces like closets or utility rooms. However, they require professional installation for electrical wiring—often needing 240V and multiple breakers. Ensure your home’s electrical panel can handle it, especially for higher kW models.

Traditional tanks are simpler to install but need floor space and venting if gas-powered. For electric models, placement near usage points reduces heat loss in pipes. Always consult a pro if you’re unsure about DIY installation.

Safety should never be an afterthought. Look for overheat protection, leakage detection, and dry-fire prevention in tankless models—certifications like ETL or CSA indicate rigorous testing. Durable materials like copper heating elements resist corrosion and extend lifespan.

For tanks, enamel coatings and foam insulation improve safety and efficiency. Regular maintenance, like descaling, can prevent issues. Brands with good warranties (e.g., lifetime on electronics) offer peace of mind for long-term use.

Modern water heaters are getting smarter. WiFi-enabled models let you adjust temperatures remotely via apps or voice assistants like Alexa—great for optimizing schedules or troubleshooting. Digital displays with 1-degree increments provide precise control, and self-diagnostic features alert you to problems early.

While not essential, these features add convenience and can enhance energy savings by allowing off-peak usage. If you love tech, they’re worth the investment for a more integrated home system.

Tankless water heaters provide endless hot water on demand, so you never run out during back-to-back showers. They’re also more energy-efficient because they only heat water when you need it, reducing standby energy loss. However, they require a higher upfront cost and may need electrical upgrades, while traditional tanks are cheaper initially but can leave you with cold water if the tank empties.

Most tankless models need 240V power and dedicated breakers—for example, an 18kW unit might require two 40-amp double-pole breakers. Check your home’s electrical panel; if it’s 200 AMP or larger, you’re likely good, but older homes with 100 AMP service may need an upgrade. Always consult an electrician before installation to avoid overloading your system.

Yes, but you’ll need a high-power model (24kW or above) with a flow rate of at least 5 GPM. This ensures it can handle simultaneous showers, laundry, and dishwashing. In colder climates, consider even higher kW to compensate for lower inlet water temperatures. Models like the Rheem RTEX-24 or Westinghouse 27kW are designed for these demands.

Installation complexity varies. If you’re replacing an existing electric tankless, it might be DIY-friendly with basic plumbing skills, but new installations often require professional help for electrical work. Tankless units need proper wiring and mounting, while traditional tanks are simpler but may need venting. Always follow local codes and consider hiring a pro to ensure safety and efficiency.

On average, tankless models save 30-60% on energy bills compared to traditional tanks, thanks to their on-demand operation. The exact savings depend on your usage, local energy rates, and the model’s efficiency. For example, users of the EcoSmart ECO 11 report significant reductions, but the payback period might be longer if installation costs are high.

Annual descaling is recommended to prevent mineral buildup, especially in areas with hard water. Some models have self-cleaning features, but you should still check for error codes and clean inlet filters. Traditional tanks need periodic flushing and anode rod replacement. Proper maintenance extends lifespan and ensures consistent performance.