The Ultimate Guide to Tankless Water Heaters: Best Options for Every Home

Tankless water heaters have revolutionized how we think about hot water. Unlike traditional water heaters that store hot water in a tank, tankless models heat water on demand, providing endless hot water while saving energy and space. In this comprehensive guide, we will explore the best tankless water heaters available today, compare their features, and help you choose the right one for your needs.

Comparison of Tankless Water Heater Types

Type Fuel Source Typical Flow Rate Best For Cost Range
Electric Electricity 2-5 GPM Small homes, apartments $200 – $800
Gas Natural Gas 5-10 GPM Larger homes, multiple fixtures $500 – $1,500
Propane Propane 4-8 GPM Remote areas without gas lines $500 – $1,500
Hybrid (Heat Pump) Electricity 2-3 GPM Energy efficiency seekers $700 – $2,000

Understanding Tankless Water Heaters

Tankless water heaters, often referred to as “on-demand” water heaters, heat water directly without the use of a storage tank. When you turn on a hot water tap, cold water travels through a pipe into the unit where it is heated either by gas or electricity. This innovative technology ensures that you never run out of hot water, making it ideal for households with high hot water demands.

Benefits of Tankless Water Heaters

  • Energy Efficiency: Traditional water heaters continuously heat water, which can lead to higher energy bills. Tankless models use energy only when hot water is needed.
  • Space Saving: These units are compact and can be installed in smaller spaces, such as closets or under sinks.
  • Longevity: Tankless water heaters typically last longer than traditional tank models, often providing 20 years or more of service.
  • Consistent Temperature: Enjoy a steady stream of hot water without fluctuations in temperature, which can be common with tank heaters.

Top Tankless Water Heaters of 2025

1. Stiebel Eltron Electric Tankless Water Heater

This unit is favored for its advanced self-modulating technology that adjusts energy consumption based on demand, making it highly efficient. It delivers a high flow rate, making it suitable for multiple applications in a home.

2. Rinnai RU199iN Tankless Water Heater

Recognized by experts at www.popsci.com, the Rinnai RU199iN stands out for its versatility and efficiency. It can provide hot water for multiple fixtures simultaneously, making it ideal for larger households.

3. Rheem Performance Tankless Water Heater

The Rheem model is a budget-friendly option that still offers impressive performance. It heats water quickly and is known for its reliability, making it a solid choice for families looking to upgrade from traditional systems.

4. EcoSmart ECO 27 Electric Tankless Water Heater

This model is perfect for eco-conscious consumers. It utilizes advanced technology to optimize energy use, and its compact design makes it easy to install in tight spaces.

5. Bosch Therm 830 ES Tankless Water Heater

A well-regarded choice for those seeking efficiency, the Bosch Therm 830 ES is designed for high flow rates and can handle multiple outlets at once. Its durable construction ensures it can withstand the demands of a busy household.

Technical Features Comparison Table

Model Fuel Type Max Flow Rate Energy Factor Dimensions (inches) Warranty
Stiebel Eltron Electric 4.0 GPM 0.99 13 x 8 x 3.5 7 years
Rinnai RU199iN Natural Gas 9.8 GPM 0.93 24 x 14 x 10 12 years
Rheem Performance Natural Gas 7.0 GPM 0.82 18 x 12 x 6 6 years
EcoSmart ECO 27 Electric 6.0 GPM 0.98 17 x 14 x 4 Lifetime
Bosch Therm 830 ES Natural Gas 8.3 GPM 0.82 20 x 14 x 10 15 years

Key Considerations When Choosing a Tankless Water Heater

When selecting a tankless water heater, consider the following factors:

1. Fuel Source

Choose between electric and gas options based on availability, cost, and your household’s hot water demand.

2. Flow Rate

Determine how much hot water you need at peak times. This will help you select a model with an adequate flow rate for your home’s requirements.

3. Installation Requirements

Check if your home needs any modifications to accommodate a new tankless system, such as venting for gas units.

4. Energy Efficiency Ratings

Look for models with high energy efficiency ratings to save on utility costs in the long run.

5. Warranty and Support

A longer warranty often indicates a manufacturer’s confidence in their product’s durability and reliability.

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Conclusion

Tankless water heaters offer an excellent solution for homeowners seeking efficiency, space savings, and endless hot water. With various models available, including top picks from sources such as www.thisoldhouse.com and www.forbes.com, you can find the right unit tailored to your needs. Whether you choose an electric model or a gas-powered unit, investing in a tankless water heater can lead to significant savings and improved comfort in your home.

7 Best Tankless Water Heaters (2025) - This Old House

FAQ

What is a tankless water heater?
A tankless water heater is a device that heats water directly without using a storage tank, providing hot water on demand.

How does a tankless water heater work?
When a hot water tap is turned on, cold water flows through the unit where it is heated, supplying an immediate flow of hot water.

Are tankless water heaters energy-efficient?
Yes, they are more energy-efficient than traditional heaters because they only heat water as needed, reducing standby energy losses.

The best tankless water heaters, as chosen by experts

How much does a tankless water heater cost?
Costs can range from $200 for smaller electric models to $1,500 for high-capacity gas models.

How long do tankless water heaters last?
Most tankless water heaters last 20 years or more with proper maintenance.

Can a tankless water heater supply multiple fixtures?
Yes, gas models typically have higher flow rates and can supply multiple fixtures simultaneously, making them suitable for larger homes.

What size tankless water heater do I need?
The size depends on your household’s hot water demands. Calculate the maximum flow rate needed during peak usage times.

Best Tankless Water Heaters - Forbes Home

Do tankless water heaters require maintenance?
Yes, regular maintenance, such as descaling, is recommended to ensure optimal performance and longevity.

Can I install a tankless water heater myself?
While some homeowners may attempt DIY installation, it is recommended to hire a professional for safety and compliance with local codes.

Are there tax incentives for installing a tankless water heater?
In some areas, there may be tax credits or rebates available for energy-efficient home upgrades, including tankless water heaters.