Most Efficient Water Heaters: What Water Heater Types are Best?

most efficient water heaters

Understanding Water Heater Types

When it comes to the most efficient water heaters, it starts with looking at the different types.  Different types of heaters utilize differing fuels and methods to heat and keep heated your water, and they're not all equal.  Understanding the available types of water heaters will help you understand how to pick the most energy efficient that suits your water heating needs.

Types of Water Heaters

When it comes to water heater types, you break them down by how they heat the water and what type of fuel they use.  In terms of how they heat and store heated water, there are three primary types:

Tanked Water Heaters

most efficient water heatersTanked water heaters usually aren't your most efficient water heaters, but they're the most affordable in terms of upfront costs.  Conventional tanked heaters utilize electricity, natural gas, or propane to heat and maintain the temperature of dozens of gallons of water at a time.  While usually the most inexpensive to purchase and install, they're the least energy efficient type of water heater on the market.  Their inefficiencies are most obvious in that when they're not in use they're still having to run and keep the tanked water hot and ready, meaning all day while you're at work or all night when you're asleep your water heater is still using energy to stay ready for you.

Tankless Water Heaters

tankless water heatersA tankless heater sometimes might technically have a small tank on it, retaining one to three gallons of water, but doesn't work to keep this tank hot with ready-to-use water like a tanked water heater does.  Tankless heaters manage their purpose by rapidly heating and disbursing water to maintain 'endless' hot water.  Usually these are fueled by natural gas, but sometimes you'll find an electric version.  Electric tankless water heaters, however, are heavily scrutinized for their unreliability and ineffectiveness compared to gas or propane tankless heaters which are praised for their high energy efficiency and functionality.  These systems, though, are much more expensive than a tanked heater, sometimes as much as three times the installation cost.  And while there is an energy savings month over month on your power or gas bill, it could take years to recoup the additional install costs through your utility savings.  There are several pros and cons for tankless water heaters to consider.

Tanked Heat Pump Water Heaters

heat pump water heaterIt is uncommon to find heat pump water heaters despite their being one of the most energy efficient water heaters on the market.  Operating on electricity, they utilize technology similar to a home HVAC heat pump system to transfer heat from surrounding air into the tanked water.  Their lack of common use is attributable to their installation cost and the advanced skill required to install them.  Compared to a tankless water heater, their installation cost is similar, but they lack the endless hot water benefit that makes a tankless heater so appealing.

How to Choose the Right Water Heater

Our team will work with you to help select the right water heater, which means selecting the right water heater for you.  This means looking at your needs and figuring out what heater type best suits them.  Things we'll help you consider are...

  • Install location: what water heater type can fit?
  • Price: what fits your immediate budget?
  • Energy and water heating efficiency: do you need more on demand water and/or lower electricity use?

Install Location

When you're limited on space to install a water heater, a tankless may be your best option as it is smaller and typically installed outside of the home.  But if you don't have natural gas or propane available, then you might want to consider a lowboy.  A lowboy is a shorter, smaller tanked water that can run on electricity.

Price

When the budget doesn't allow for premium options, a standard tanked water heater is always the right choice.  An electric or gas tanked water heater will get the job done at the most affordable upfront price available.

Most Efficient Water Heaters

At the end of the day, there is a clearly more efficient electric option and a different clearly more efficient gas or propane option.

If you're needing an electric heater, a heat pump water heater is the most efficient you could choose.  If you're needing a gas or propane solution, tankless water heater is the most efficient choice.

If fuel type doesn't matter and you're simply looking for comfort, a gas tankless water heater will provide the most comfort with its endless supply of hot water while also being incredible energy efficient.  Overall, the gas tankless heater is a consumer's best choice for both comfort and efficiency.

Want the Most Efficient Water Heater?

If you're tired of trying to figure out the right water heater to buy, let us help.  We'll evaluate your install location, budget, and usage needs and make recommendations that make sense for you.