Best Water Heater Buying Guide

On February 25, 2026 By newsroom Topic: Appliance Buyers Guide

Water heaters are essential but often overlooked until they fail. With options like tank, tankless, heat pump, solar, and condensing water heaters, here’s a guide to help you choose the best model for your needs.

Key Considerations

Efficiency: Modern models comply with strict energy-efficiency regulations, reducing long-term costs.

Capacity: Match the size to your household’s hot water demand. - Storage tanks: Hold 40–55+ gallons; suitable for families.
- Tankless: Rated by gallons-per-minute (GPM); ideal for smaller spaces or homes with lower simultaneous hot water needs.

Fuel Type: Most water heaters run on either natural gas (cheaper to operate) or electricity. Switching fuel types can add retrofitting costs.

Space: Newer models may be larger due to better insulation, so check dimensions if replacing an old unit.

Installation: Factor in costs, especially for retrofitting or installing tankless or solar systems.

Types of Water Heaters

1. Storage Tank Water Heaters

Pros: Most common, affordable, and reliable for high-demand households.
Cons: Less energy-efficient due to standby heat loss.
Best For: Homes with consistent hot water use.

2. Tankless (On-Demand) Water Heaters

Pros: Energy-efficient; heats water only when needed; saves space.
Cons: Limited flow rate; higher upfront costs; may require electrical upgrades.
Best For: Smaller households or energy-conscious homes.

3. Heat Pump (Hybrid) Water Heaters

Pros: Up to 60% more efficient than standard electric models.
Cons: Needs warm space (40°F–90°F); higher upfront cost.
Best For: Homes in temperate climates with space for a taller unit.

4. Solar Water Heaters

Pros: Significant savings in sunny climates; environmentally friendly.
Cons: High upfront costs; dependent on weather.
Best For: Eco-conscious homeowners in sunny regions.

5. Condensing Water Heaters

Pros: Energy-efficient for large-capacity needs; uses heat from exhaust gases.
Cons: Limited to gas models; more expensive.
Best For: Homes requiring 55+ gallons of hot water.

Features to Look For

Warranty: Longer warranties (up to 12 years) often indicate better durability.
Anti-Scale Devices: Reduces mineral buildup, extending the unit’s lifespan.
Drain Valves: Brass valves are more durable than plastic ones.
Digital Displays: Monitor temperature, energy use, and settings like vacation mode.

Top Water Heater Brands

A.O. Smith: Specializes in tankless, hybrid, solar, and efficient tank models.

Rheem: Offers gas, electric, tankless, and solar-compatible units. Widely available at Home Depot.

Kenmore: Known for its Power Miser and Hydrosense options; available at Sears.

Whirlpool: Provides standard and power vent gas and electric heaters, sold at Lowe’s.

GE (General Electric): Features heat pump models (GeoSpring) and energy-efficient tanks.

Other notable brands: Bradford White, Bosch, EcoSmart, Navien, Noritz, Rinnai, State, Tempra, Trutankless.

Tips for Maximizing Efficiency

Maintenance: Replace filters and clean tanks regularly.
Placement: Ensure unobstructed airflow for heat pump units or solar heaters.
Sizing: Choose an appropriate capacity or GPM rating to avoid underperformance.