Choosing the ideal water heater for your home can be challenging. With numerous options available, it’s essential to understand the advantages and disadvantages of each type and technology. Additionally, considering local and national energy-saving rebates can further complicate the decision-making process. In this article, we will analyze different water heater technologies, recommend specific products based on our expertise, and provide insights into manufacturers, reputations, and warranties.
Best Type of Water Heater
To help you find the best water heater for your home, we have recommendations for each type of hot water system. Our focus is on residential water heaters, including electric and gas models, both tank and tankless, as well as hybrid electric or heat pump styles. These recommendations are tailored to meet your needs and the requirements of your home.
Once we provide our recommendations, we will review the pros and cons of each type, assisting you in deciding the most suitable water heater for installation or replacement. Additionally, we will help you determine whether a change in style or power supply is necessary.
Best Electric Water Heater (Tank Type)
Rhubarb 50 Gallon Performance Series (No Demand Response)
The Rheem Performance electric tank water heaters are available in various sizes, ranging from 20 to 60 gallons, with options for tall, medium, and short styles. These models have a Uniform Energy Factor (UEF) of 0.92 – 0.93. One advantage of these models is their simplicity, as they do not incorporate complex electronics or “smart” systems. This not only keeps costs down but also allows you to heat water independently of any power company disruptions. However, Rheem does offer the option of their Performance Plus, Platinum, or Gladiator line, which include features such as demand response technology, WiFi capabilities, and application control. These additional features may not be necessary for everyone.
The Rhubarb 50 Gallon Performance Series is an affordable option, starting at $519. With a 50-gallon tank, it can provide 61 gallons of hot water within the first hour. Furthermore, it comes with a 6-year limited warranty.
Best Gas Water Heater (Tank Type)
AO Smith Signature 50 Gallon Tall
Our top pick for the best gas water heater is the AO Smith Signature 50 Gallon Tall model. This particular model is perfect for families of 5 or more, offering 50,000 BTUs and providing a substantial 81 gallons (or more) of hot water in the first hour. It features an electronic gas valve for precise temperature control and does not require an external power source.
The AO Smith Signature 50-gallon model also offers convenient features such as a small LED status indicator for diagnostic reporting, push-button ignition for easy startup, a ceramic fusion tank guard to reduce corrosion, and a self-cleaning dip tube to minimize sediment buildup. With a 6-year limited warranty, you can be confident in your purchase. AO Smith also manufactures a range of sizes from 30 to 98 gallons, including short and tall configurations.
For those desiring additional smart features, the Signature Premier range provides vacation timers and automatic usage-based settings.
The Best Hybrid Electric Heat Pump Water Heaters
AO Smith Signature Hybrid Water Heater
Considered the “Cadillac” of water heaters, hybrid electric heat pump models offer a smart and efficient solution. The AO Smith Signature Electric Water Heater with Hybrid Heat Pump is up to 4 times more efficient than standard electric water heaters, potentially saving up to $4,500 in energy costs over 10 years. Its hybrid heat pump design utilizes surrounding air to heat the water, making it both eco-friendly and cost-effective.
This water heater does not include built-in WiFi but instead features a straightforward front-mounted control system with options for efficiency, hybrid, electric, or vacation mode. Additionally, users in Washington or Oregon can benefit from demand response technology.
With a 10-year limited warranty, the AO Smith Signature Hybrid Water Heater provides peace of mind.
Best Gas Tankless Water Heaters
Rinnai V75IN Indoor Tankless Water Heater
Rinnai is renowned for its tankless water heaters, and for gas models, we recommend the Rinnai V75IN Indoor Tankless Water Heater. These models are suitable for families of 4-5 and provide a continuous supply of hot water with a flow rate of at least 7.5 gallons per minute (GPM). Whether you have multiple appliances running simultaneously or a shower in use, this unit ensures an ample hot water supply.
The Rinnai V75IN offers simplicity and reliability, featuring a 10-year factory warranty on the heat exchanger and a Control-R 2.0 mobile app for convenient scheduling and control. Additional warranties include 12 months for labor and 60 months for parts.
For outdoor installations, we recommend the Rinnai V75EN with the same flow rate but an outdoor-rated vent system.
Best Electric Tankless Water Heaters
EcoSmart Tankless Water Heater
When it comes to electric tankless water heaters, smaller units designed for point-of-use applications are often preferred. The EcoSmart ECO 11 is an excellent choice for bathroom installations. With a flow rate between 1.3 and 3.1 GPM, depending on the inlet water temperature, this unit can meet the hot water demands of most households.
While whole-home electric tankless water heaters are available, they typically require multiple high-current circuit breakers, making retrofitting challenging. Moreover, modern electric water heaters have become so efficient that tankless solutions may not always be cost-effective or practical for existing homes.
EcoSmart offers a range of tankless water heaters, allowing you to choose the size that best suits your needs. The smallest unit is perfect for supplying water to a single bathroom sink or break room tap. EcoSmart provides a limited lifetime warranty for the heat exchanger and electronics of home heaters in the continental United States and Canada. Additionally, they offer a 1-year warranty on switches and electronics for point-of-use products and a 5-year warranty for their ECO Mini series.
Repair and Replacement of Water Heaters – Incentives
In the event of a water heater failure, homeowners often opt for a direct replacement of the same type (usually conventional gas or electric). However, there are government rebates available for homeowners who choose to replace their water heaters with energy-efficient options. To be eligible for these Energy Star rebates, the following criteria must be met:
- For a qualifying gas, oil, or propane tankless water heater, with an energy factor >= 0.82 or a thermal efficiency of at least 90%, homeowners can receive a $300 tax credit. Nearly all ENERGY STAR-certified tankless water heaters qualify.
- For an eligible electric heat pump water heater, with a Uniform Energy Factor (UEF) >= 2.2, homeowners can also receive a $300 tax credit. Most ENERGY STAR-certified water heaters qualify for this tax credit.
Advantages and Disadvantages of Electric Water Heaters
Electric tank water heaters work by heating water in a large insulated tank, typically ranging from 40 to 50 gallons. Larger models are available for bigger homes or commercial use. These water heaters utilize heating elements and thermostats to regulate the water temperature. To maximize savings, pairing the best electric water heaters with an external timer is recommended.
Pros:
- Easy to replace
- Inexpensive compared to alternatives
- Suitable for warm or cold weather climates
Cons:
- Often less efficient than tankless options, especially gas-powered ones
- Prone to periodic failures
- Limited hot water supply
Advantages and Disadvantages of Tankless Water Heaters
Tankless water heaters heat water on demand as it passes through a heating element or heat exchanger. Unlike tank-based systems, these units do not store hot water, minimizing heat loss. Tankless water heaters have gained popularity due to their energy efficiency and the guarantee of an endless supply of hot water.
Pros:
- Efficient operation
- Potential rebates available
- Never runs out of hot water
Cons:
- Relatively expensive
- Requires special installation
- May take longer to heat water in remote parts of the house
Should You Buy a Heat Pump Water Heater?
Heat pump water heaters are a lesser-known option that utilizes heat from the surrounding air to warm the water in the tank. These units are ideal for warmer climates and require more significant spaces such as utility rooms, garages, shops, or basements. Heat pump water heaters are approximately three times more efficient than electric water heaters and also cool and dehumidify the surrounding air, making them environmentally friendly.
Pros:
- Energy efficient
- Provides cooling during warmer periods
- Faster heating with larger capacity tanks
Cons:
- Higher price point
- Not suitable for colder climates
- Larger space requirements
- Limited hot water supply
Considering a Solar Water Heater?
For maximal energy efficiency, solar water heaters are an excellent option. These systems utilize solar energy to heat water for either the entire home or specific applications like swimming pools. Solar water heaters often incorporate backup systems, such as tankless or traditional water heaters, for cloudy days or periods of high demand. Active solar heating systems use flat plate collectors to heat fluid that circulates through the system, while passive systems directly heat water stored in tanks situated on the roof or underground.
Pros:
- Environmentally friendly and cost-effective
- Suitable for warm climates
- Multiple applications, including pool heating
Cons:
- Higher upfront costs
- Not ideal for colder climates
- More complex installation
- Limited hot water supply
Check for Additional Rebates
It’s essential to explore local gas and electric company incentives for potential discounts. For example, replacing a traditional gas water heater with a tankless system may qualify homeowners for a $450 rebate from the local gas supplier. Taking advantage of such incentives, your overall savings can be significant.
To illustrate, consider the following calculation:
- Cost of tankless water heater: $1,200
- Tax credit: -$300
- Local rebate: -$450
- Total savings: $450
With these savings, it’s hard to justify not upgrading to a more efficient water heater. Ultimately, your decision should align with the needs and requirements of your home. Evaluate all options and consider potential tax savings before making a final decision.