These models have a tank like a conventional water heater, but they capture exhaust gases that would normally go out the flue, which wastes energy. These gases are blown through a coil in the base of the unit, where incoming cold water can absorb most of the heat.
Tankless (On-Demand) Water HeaterRather than storing water, tankless water heaters use heating coils to heat the water as you need it. They’re more energy-efficient than a storage tank but provide only a limited flow of hot water per minute—about 3.5 gallons
They’re best for people who typically aren’t drawing water for more than one use at a time—such as running a shower and dishwasher simultaneously. Tankless models are best for homes that use natural gas to heat the water; electric models might require an expensive upgrade of the home’s electrical capacity.
Heat Pump (Hybrid) Water HeaterThese capture heat from the air and transfer it to the water. They use about 60 percent less energy than standard electric water heaters. And while they cost more than electric-only models, installation is similar and payback time is short. But they don’t work well in very cold spaces and need to be placed in an area that stays about 40° F to 90° F.
And because the heat pump is on top, a hybrid water heater needs as much as 7 feet of clearance from floor to ceiling. You’ll also need up to 1,000 cubic feet of uncooled space to capture enough heat from the air as well as a nearby drain to discharge the condensate.
Electric Water Heaters Ratings
Condensing Water HeaterCondensing water heaters are an option if you heat with gas and need a unit with a capacity of more than 55 gallons.
These models have a tank like a conventional water heater, but they capture exhaust gases that would normally go out the flue, which wastes energy. These gases are blown through a coil in the base of the unit, where incoming cold water can absorb most of the heat.
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