An Overview of Water Heater Types for a Home. Benefits and Drawbacks
There are many water heater types and models available today, catering to different needs and applications.
From heating water at home to camping, RV-ing, and marine applications, there is a device suitable for every situation.
Choosing the right type is crucial as water heaters consume about 20% of a home’s energy and operating costs can be high.

Find Your Local Water Heater Expert!
In this review, we will explore the best water heater types for homes. We will cover gas, electric, solar-powered, tankless, tank-type, hybrids, and boilers.
We will compare the features, benefits, and drawbacks of each type. This will help you make an informed decision when purchasing or replacing a water heater.
Additionally, we will list top-selling brands to consider when shopping for a water heater. Whether you need a reliable solution for your home or an efficient model for outdoor adventures, this review has you covered.
A Review of Water Heater Types Based on the Fuel Source
Gas Water Heaters

Gas heaters can use both natural gas and propane gas, or LP. They are an excellent choice where this energy is available. Gas appliances are highly energy-efficient, especially those with condensing technology.
You can choose between tank and tankless water heater types. Both are covered in our tankless vs tank-type review. Another important thing is to select the proper venting system; power vent, direct vent, power direct vent, or atmospheric.
Pros
- Fast Heating: Gas water heaters can heat water quickly and have a high recovery rate.
- Cost-Efficient: Natural gas is often more affordable than electricity, leading to lower operating costs.
- Reliability: They tend to have a longer lifespan and can consistently provide hot water.
Cons
- Ventilation Requirements: Gas water heaters require proper ventilation, which can complicate the installation process.
- Environmental Impact: Burning natural gas releases carbon emissions, contributing to air pollution and environmental issues.
- Ignition Dependency: They rely on electricity for ignition, so they may not function during power outages unless equipped with a backup power source.
Related: Hybrid water heaters vs. gas
Electric Water Heaters

Electric water heaters are recommended if electricity is the only option, or you just need a unit for one fixture.
Although electric models have higher energy factors than gas units, their long-term costs are typically higher. This is due to higher fuel rates. As a result, electric units are more suitable for small jobs or as point-of-use heaters.
For those in need of a water heater for demanding applications, a heat pump or hybrid model is highly recommended. These units have a high energy factor, making them very efficient and able to offset higher fuel costs. Additionally, they are eco-friendly as they produce no direct pollution, providing a greener solution for your water heating needs.
Pros
- Energy Efficiency: Electric water heaters are usually highly efficient, converting almost 99% of the energy into heat for heating water.
- Installation Flexibility: They are simple and easy to install, making them suitable for various settings as they do not require venting or gas pipes.
- Reliability: Due to their simplicity, electric water heaters typically have a longer lifespan and require less maintenance.
Cons
- Operating Costs: Electricity costs more than other energy sources, resulting in higher operating expenses.
- Slower Heating: They may have a slower recovery time compared to some gas-powered models.
- Environmental Impact: Depending on the electricity source, they can contribute to carbon emissions and environmental concerns.
Solar Water Heaters

Solar water heater types use energy from the sun to heat water. This makes them an eco-friendly and cost-effective option for homeowners.
With a simple design, which can even be made at home, solar water heaters harness free renewable energy. They are an excellent long-term investment.
Pros
- Energy Savings: They harness free, renewable solar energy, leading to significant energy savings for homeowners.
- Environmentally Friendly: Solar-powered water heaters contribute to the reduction of greenhouse gas emissions.
- Low Operating Costs: With proper installation, their ongoing operational costs remain low.
Cons
- High Initial Costs: The purchase and installation expenses are relatively high.
- Weather Dependent: Energy efficiency can decrease on cloudy or rainy days.
- Space Requirement: They require a substantial amount of space for solar panel installation.
Oil-Fired Water Heaters
The popularity of oil-fired water heaters has decreased due to eco-friendly technology. However, they were once widely used in homes without access to natural gas.
Compared to gas units, oil-fired water heaters have higher upfront costs and require more maintenance. Their emissions can also be harmful to the environment.
In certain situations, such as areas without natural gas access or older homes with outdated infrastructure, oil-fired water heaters may still be the best option.
Pros
- Energy Efficiency: Oil-fired water heaters can efficiently and quickly heat water.
- Reliability: Over their long lifespan, they can provide a consistent hot water supply.
- Independence: They can operate even during power outages since they don’t rely on electricity for ignition.
Cons
- Operating Costs: Oil prices can fluctuate, leading to unexpectedly high operating costs.
- Environmental Impact: Burning oil releases various pollutants, contributing to air pollution.
- Fuel Storage: You need to have a dedicated oil tank and secure a steady supply of oil for continuous operation.
Wood-Burning Water Heaters
Wood-fired heaters and furnaces are heating appliances that use wood or wood pellets as an energy source. These appliances can be used for space heating and even cooking, in addition to water heating and preparation.
Wood is a renewable resource, making these water heater types an eco-friendly option for those looking to reduce their carbon footprint.
However, it is important to note that wood-fired heaters require a significant amount of work and maintenance, including regular cleaning and refueling.
Pros
- Fuel Efficiency: These water heaters use wood, a renewable and sometimes freely available energy source.
- Independent Operation: They can function without electricity, making them suitable for remote or off-grid locations.
- Cozy Atmosphere: A wood-burning heater can create a warm, cozy ambiance in a home.
Cons
- Required Effort: They demand manual labor, such as sourcing, chopping, and loading the wood.
- Environmental Impact: Burning wood releases particles and gases that can contribute to air pollution.
- Maintenance: They require regular cleaning and maintenance to prevent creosote build-up in the chimney and firebox, as well as potential fire hazards.
Selecting Water Heater Types Based on the Size and Technology
Tankless Water Heater Types

Tankless water heaters, also known as on-demand water heaters, are a type of water heating system that do not use traditional water storage tanks. Instead, they heat water as needed, providing hot water on demand while reducing energy consumption and heating costs. In addition, they have a longer lifespan and are more environmentally friendly due to reduced gas emissions.
Tankless water heater types are compact yet powerful and are recommended for larger families with a high demand for hot water, or in situations where space is limited.
Most tankless models come equipped with digital displays, diagnostic systems, modulating gas valves, and a variety of safety features.
Pros
- Energy Efficiency: Tankless water heaters only heat water as it’s needed, or on demand, reducing energy consumption and utility bills.
- Longevity: They typically have a longer lifespan than water tank heaters, with an expected lifespan of around 20 years and a max. warranty of 15 years.
- Space-saving: Tankless heaters are compact and can be mounted on a wall, freeing up floor space for other uses.
- Unlimited Hot Water: As they heat water on demand, you’ll have a continuous supply of hot water for unlimited showers.
- Prevents Water Damage: Since there is no tank to burst or leak, you’re less likely to experience significant water damage.
Cons
- High Initial Cost: The upfront cost of purchasing and installing a tankless unit is usually higher than that of traditional tank heaters.
- Limited Flow Rate: While you’ll have an unlimited supply of hot water, the amount of hot water that can be produced at one time is limited. If multiple appliances are demanding hot water simultaneously, it may not meet all the demands. This can be solved by using several units connected together.
- Complex Installation: Installation can be complex and costly, often requiring a new electric panel, venting, or gas lines.
- Inconsistent Temperatures: There can be fluctuations in water temperature, known as a “cold-water sandwich,” when there are repeated on-and-off uses. Note that tankless units often require a minimum flow rate to initiate the heating process.
- Maintenance: Due to their delicate construction, tankless water heaters require regular maintenance, such as yearly descaling, to keep them running efficiently.
The most popular tankless brands are Rinnai and Takagi.
Storage Water Tanks

Water tank heaters are the most popular home heating systems. They store hot water inside metal tanks, ensuring it is always readily available for use, even when you’re away. Popular heaters come in sizes ranging from 30 to 100 gallons, making them suitable for whole-house water heating. They are also an excellent budget-friendly option due to their lower purchase and installation costs.
For homeowners looking for high efficiency and better performance, condensing models are an ideal choice. They operate by using the exhaust gases to heat the water, resulting in increased energy efficiency.
Pros
- Lower Initial Cost: Tank-type water heaters are typically more affordable upfront than tankless and other types, making them budget-friendly.
- Reliable: Traditional tank-type water heaters have been providing reliable water heating for decades.
- Easy to Replace: Replacing a broken tank-type water heater is straightforward in terms of installation, space, and cost.
- Works in Power Outages: Gas or propane-powered models provide hot water even during power outages.
- Allows Simultaneous Usage: The water heater can easily handle multiple appliances without sacrificing comfort.
Cons
- Limited Supply: Once the hot water in the tank is used, it takes time to heat a new batch, which can be inconvenient.
- Less Energy Efficient: Tank-type heaters can experience standby heat loss, leading to energy waste and higher bills.
- Larger Space Requirement: These heaters are bulky and take up more space, making them less ideal for small homes or apartments.
- Decreased Longevity: Traditional water heaters typically don’t last as long as tankless models. You may need to replace them every 10 to 15 years, depending on the element quality and usage. The longest warranty I’ve come across for traditional water heaters is 12 years.
- Potential for Water Damage: Storing large volumes of water increases the risk of leaks or burst tanks causing water damage.
Some of the most popular water heater types come from the manufacturers Rheem, AO Smith, and Bradford White.
Electric Heat Pumps – Hybrids

The electric heat pump water heaters, also known as hybrids, are highly efficient and cost-effective devices that combine two technologies. They resemble electric water heaters and feature two heating elements. The heat pump and advanced electronics on top extract heat from the air and transfer it to the water, ensuring ultra-high energy efficiency. Instead of generating heat, this technology moves it from one place to another, making hybrids the only electric units that are Energy Star approved.
Hybrid water heaters are the most energy-efficient option, making them a smart investment for homeowners who want to save on energy costs over time. Besides their high efficiency, they have a lower environmental impact compared to traditional electric water heaters.
Pros
- Energy Efficiency: Hybrid water heaters are highly efficient, using warm surrounding air to heat the water. This results in significant energy savings.
- Environmentally Friendly: They produce fewer pollutants since they use less electricity, making them an eco-friendly choice.
- Cost Savings: Although the upfront cost is higher, their superior energy efficiency leads to significantly lower energy bills.
- High Recovery Rate: Hybrid models heat a larger amount of water faster than standard electric models, ensuring a high rate of hot water delivery.
- Programmable: Many hybrids come with advanced technology and programmable settings that adapt to usage patterns, helping save energy during periods of low hot water demand.
Cons
- High Initial Costs: Purchasing and installing a hybrid water heater typically costs more than traditional tank or tankless models.
- Installation Requirements: They require adequate air and room space, as well as a condensate drain for proper installation.
- Noise: Hybrid heaters generate more noise than traditional tank models due to the electric blower, although they are not excessively loud.
- Potential Need for Auxiliary Heat: In colder climates, their efficiency may decrease, necessitating an auxiliary heating source like electric resistance heaters.
- Maintenance: Hybrid water heaters might require more maintenance compared to other types. Regular tasks may include cleaning the air filter, checking the fan, and occasionally defrosting the system.
The most popular hybrid brands in the market today include Rheem, AO Smith, and Stiebel Eltron.
Related: Hybrid water heaters vs. tankless
Exploring Additional Water Heater Varieties
High Efficiency Water Heaters
Recently high-efficiency water heaters have gained popularity due to their ability to optimize energy savings, provide superior performance, and reduce emissions. These models often bear the Energy Star certification, marked by the blue tag logo, which is recognized globally as a symbol of energy efficiency.
Condensing Water Heaters

The article on water heater type also covers state-of-the-art appliances, such as ultra-efficient condensing models.
Condensing appliances are energy-efficient systems that are designed to operate with over 90% efficiency while minimizing energy loss. Due to their advanced condensing technology, professional installation, and regular servicing requirements, these units are more expensive than non-condensing units.
They are particularly popular in Europe, with brands such as Vaillant, Buderus, and Junkers, and are gaining popularity in North America, with brands such as Rinnai, Noritz, Navien, Bosch, and Weil-Mclain.
RV Water Heaters

RV water heaters offer a versatile solution for outdoor enthusiasts and homeowners. These compact devices provide hot water on demand, ideal for camping, hiking, boating, fishing, hunting, and surfing.
They are easy to use and require only a propane tank or rechargeable battery, making them great for remote locations without electricity or natural gas.
Indirect Water Heaters
If you’re looking for an efficient way to heat your home’s water supply, combining a furnace or boiler with a high-efficient storage tank can be an excellent solution. These systems, known as indirect hot water heaters, can provide reliable and efficient hot water without the need for a separate water heater.
Atmospherically-Vented Water Heaters
Atmospherically vented water heaters are the simplest and most affordable type of gas heater. They feature a draft hood and metal vent, typically connected to the chimney, which directs exhaust gases outside. The hot exhaust gases, being lighter than the surrounding air, rise through the vent and exit the house.
Direct-Vent Water Heaters
Direct vent water heaters are ideal for rooms with limited ventilation or no chimney. These units use a sealed combustion system that draws air from outside and expels fumes through a dedicated vent.
They eliminate the need for an electric blower, making them more energy-efficient and cost-effective.
Power-Vent Water Heaters
Power vent units are similar to direct vent models but use an electric blower to assist in exhausting gases outside.
Tankless Coil
A tankless coil heats water directly inside the boiler, eliminating the need for a storage tank. These units perform efficiently during colder months when the boiler is regularly used. However, efficiency drops when the boiler operates less during warmer months.
Marine Water Heaters
Check out our review of the top marine hot water heaters manufacturers, like Atwood, Isotemp, Webasto, Torrid, and many more. These products are specifically designed for boaters and sailors to enjoy hot showers and other tasks where hot water is required.
Point-of-Use Type (POU) Water Heaters
Point-of-use water heaters are small electric devices designed to heat water at the point of service, typically installed under the kitchen sink
Also known as under-sink water heaters they are popular in residential settings for providing instant hot water while saving space.
The most popular tankless electric models come from EcoSmart, Eemax, Rheem, Stiebel Eltron, and Titan.
Electric Hot Water Boosters
Struggling with slow hot water delivery or high energy bills? Learn how an electric hot water booster can improve your home’s hot water efficiency, save energy, and ensure quicker access to hot water. Explore the benefits and find the perfect model for your needs!
How to Choose a Water Heater: Things to Consider
When buying a new water heater, there are a few important factors you should consider to ensure that you are making the best possible purchase.
Here are some things to look for:
Fuel Type
When purchasing a new water heater, it is important to select the appropriate fuel source and compare the fuel prices.
The most common fuel types are gas and electricity, each with its own set of advantages and disadvantages.
Natural gas is typically the most cost-effective option. If it’s not available, propane is a viable alternative, as it can be delivered to your home. Solar energy is a renewable and free source, but its efficiency depends on weather conditions.
For electric-powered models, we suggest considering heat pumps or hybrids as they operate with ultra-efficiency.
Oil-fired heaters are also available, offering fast heating, but require more maintenance and use older technology.
Price and Operating Costs
You can choose between economy models or high-efficiency, more expensive heaters. Condensing tankless models, like the Rinnai RUC98, offer high efficiency (0.96 rating), reducing both emissions and costs.
We recommend focusing on Energy Star products for savings, government grants, and lower gas emissions. These products help reduce energy bills while benefiting the environment.
Water Heater Size
Before purchasing a water heater, it’s important to consider the capacity needed to meet your household’s hot water demands.
Tank-type heaters come in various sizes, ranging from 2 to 100 gallons. A typical household with 4-5 family members may require a tank size of 50-65 gallons. It’s also important to consider the First Hour Rating (FHR) and recovery rate when selecting a tank-type heater. For more information on sizing a water tank heater, refer to our guide.
Tankless water heaters, on the other hand, heat water on-demand and do not store hot water in a tank. The capacity of a tankless heater is measured in Gallons Per Minute (GPM). Use this article to learn how to size a tankless water heater.
Point-of-use models are small, while tankless heaters are medium in size and storage or tank-type heaters are typically larger.
After reviewing various water heater types, models, user feedback, and features, we recommend tankless or on-demand water heaters. These units provide continuous hot water, making them ideal for homeowners wanting to switch from a traditional tank-type heater.
Quality
Investing in high-quality units with advanced technology improves performance, efficiency, and lifespan. However, they tend to be more expensive and may come with longer warranties. If you live in an area with hard water, consider commercial-grade elements like heavy-duty anode rods or self-cleaning systems to prevent mineral buildup.
What’s Your Favorite Brand?
When choosing a brand for a water heater, it’s important to consider various factors to ensure that you make the best decision.
One of the most important things to consider is the brand’s reputation. You want to choose a brand that has a good reputation and great reviews. You can research online reviews and ask for recommendations from family and friends who have purchased water heaters before.
Additionally, consider the brand’s history and how long they’ve been in the HVAC industry.
Another important factor to consider is the price of the water heater. Determine your budget and compare prices across different brands.
Keep in mind that higher-priced models may offer more advanced features, but that doesn’t necessarily mean they are the best choice for your needs.
Additionally, check the length and terms of the warranty offered by each brand, as well as the specific features offered by each model.
By carefully considering these factors, you can choose a brand and model that meets your needs and provides reliable, efficient performance for years to come.
Lastly, it’s worth noting that popular manufacturers of tank-type water heaters are Rheem, AO Smith, and Bradford White, while for tankless options, consider Rinnai, Takagi, and Noritz.
Repair Costs and Parts Availability
Renowned brands typically have a superior service network and readily available parts compared to lesser-known or foreign manufacturers.
This can be an important factor to consider when purchasing a water heater, as it ensures that you can easily get help and replacement parts in case of any issues with the unit.
Additionally, established brands often have better customer support and are more likely to honor warranties and provide after-sales services. This can give you peace of mind and make the overall ownership experience more pleasant.
Available Features
When selecting a water heater, it’s important to consider the benefits of the heater’s features, as well as how user-friendly, easy to replace, and troubleshoot these components are.
For tank-type water heaters, some of the best features include a power venting system, an intelligent control valve with diagnostics, a heavy-duty or powered anode rod, heat traps, and a self-cleaning system. These features can help to improve the efficiency and lifespan of the water heater, enhance its performance, and make maintenance and troubleshooting easier.
On the other hand, top tankless models are equipped with advanced electronics, a voice control system, Wi-Fi connectivity, a recirculation system, and condensing technology.
These features can help to increase the efficiency and convenience of the heater. However, it’s important to keep in mind that such features may come at a higher cost. Therefore, it’s essential to weigh the benefits and costs of each feature and select a water heater that meets your specific needs and budget.
Buying vs. Renting a Water Heater
When deciding whether to buy or rent a water heater, it’s important to consider the pros and cons of each option to make an informed decision.
Renting a water heater can be an attractive option due to the affordable monthly payments and worry-free service and repairs that come with it. It is great for those on a tight budget but over the long term it can end up being more expensive than buying one outright.
Buying a water heater means a higher initial cost, but at the end of the term, it becomes yours and free to use. Also, if there is a problem, it can cost you a lot to repair it. Ultimately, this can be a more cost-effective option over the long term, especially if you plan to stay in your home for a while.
Conclusion
Here it is. If you’re wondering what type of water heater you should get, this comprehensive guide will provide the information you are looking for. This review covers various water heater types used in residential water heating, for your benefit. We have included various fuel types and features to look for, as well as the best and most sought-after brands.
If you are looking for water heater reviews by brands, types, including specs and features, or comparisons, you can easily find them by clicking on the respective links on the navigation bar or searching for heaters by manufacturers.
Links to the most popular brands, such as Rheem, AO Smith, Bradford White, Takagi, Rinnai, and others, are also located on the navigation bar. However, if you are looking to buy one or see what other users like or dislike, we recommend checking the online stores.
Related Articles
-
How to Choose the Best Electric Water Heater Booster for Maximum Efficiency
Water heaters are excellent at producing hot water efficiently, but the delivery rate can be slow, especially in large homes or for distant fixtures. This inefficiency can lead to higher…
-
The Benefits of Tankless Heaters with Recirculation Pumps: Enjoy Endless Hot Water & Zero Waste
Tankless water heaters with recirculation pumps are revolutionizing the way we access hot water, offering instant comfort and efficiency. By keeping hot water flowing through the pipes, these systems eliminate…
-
What Is: Atmospheric Vent Water Heater (With Pros and Cons)
When it comes to heating water in your home, choosing the right type of water heater is crucial for efficiency, cost, and overall convenience. One popular option is the atmospheric…