What You Should Know Before Purchasing a Water Heater

Many of us rarely consider our water heaters—until that cold winter dawn when you notice the shower has been flowing for several minutes and it’s still not warm. still Not becoming heated. At that point, you can't focus on anything else.

An additional incentive to keep an eye on your water heater is that it ranks among the top energy consumers in your house, making up approximately 20 percent of the typical household's overall energy expenses, as stated by the U.S. Department of Energy .

Our specialists within the Home Improvement & Outdoor Lab here at Good Housekeeping Institute compiled this purchasing guide to assist you in making an informed decision before this crucial buy. Our recommendations stem from our hands-on experience evaluating different kinds of water heaters over the past few years, supplemented by conversations with specialists in the field such as installers, constructors, and maintenance providers.

All experts concur on one point: you shouldn’t wait until your present water heater fails before getting a new one. Doing so often leads to higher costs and potentially settling for an unsuitable unit due to rushed decision-making. According to Francis J. Dietz, Vice President of Public Affairs, indicators that your water heater may require replacement encompass its age—typically around 12 to 15 years; irregular hot water temperatures; sounds coming from within the tank; diminished water pressure; as well as murky or foul-smelling water. AHRI (AHRI).

Should any of these circumstances pertain to your water heater, continue reading for crucial information.

Types of water heaters

Although the market remains largely controlled by storage tank water heaters, even within this traditional segment, there are now numerous choices available. Furthermore, our specialists suggest that several advanced, energy-efficient models may also deserve consideration. Below is a comparison of these various options.

Storage Tank Water Heater

About 90 percent of homes in the U.S. use this prevalent type of water heater, which comprises an insulated tank designed to store preheated water ready for usage. When demanded, a pipe located atop the tank channels the hot water into your household plumbing network, distributing it to various outlets such as showers, taps, dishwashers, washing machines, among others. The heating process can be powered either through a gas burner or via an electric component, thus driving the demand in the marketplace. electric storage tank water heaters and gas storage tanks for water heaters .

Electric water heaters come at lower upfront costs and simpler installation processes as they do not require outdoor ventilation, whereas gas water heaters generate dangerous carbon monoxide and thus necessitate such ventilation. However, in many regions across the nation, electricity tends to have higher price tags compared to natural gas, leading to greater operational expenses for electric water heaters.

When adequately cared for, with yearly maintenance performed by an expert technician, a storage tank water heater can function effectively for between 10 to 12 years.

Pros

• Low upfront cost
• Easy to install, especially electric units
• Fairly easy to maintain

Cons

• Supply of hot water is limited to the size of the tank
• Relatively short lifespan

Cost, including installation

• $900 to $1,800
• Energy Star-qualified gas storage tank water heaters are eligible for a federal tax credit covering 30% of the project cost, up to $600

Tankless Water Heater

Also known as on-demand water heaters, tankless models consist of a coiled heat exchanger that produces instant hot water as needed. That means no waiting for the shower to heat up on cold winter mornings. Tankless water heaters are more expensive than tank models but They are highly efficient because they eliminate standby energy loss typically linked to hot water stored in a tank. A key point to consider is that the highest volume of hot water you can get peaks at about 5 gallons per minute, potentially falling short for bigger homes where several appliances might need hot water simultaneously—like when multiple showers and the dishwasher are operating together.

Tankless water heaters come in both gas and electric varieties. These models tend to cost more upfront compared to traditional storage tank water heaters, and setting them up usually involves additional work such as installing new water pipes and electrical systems. Proper upkeep is crucial due to the intricate nature of these units. However, with appropriate care, a tankless water heater has the potential to function efficiently for over two decades, thanks to readily interchangeable components that help prolong its lifespan.

Pros

• Delivers instant hot water
• Extremely energy efficient
• Long lasting

Cons

• Higher upfront cost and harder installation
• Not ideal for larger households with high hot water demands

Cost, including installation

• $1,200 to $3,500
• Energy Star-qualified gas tankless water heaters are eligible for a federal tax credit covering 30% of the project cost, up to $600

Heat Pump Water Heater

A relative newcomer to the category, heat pump water heaters are sometimes called hybrids, because they pair an air-source heat pump with a conventional electric storage tank water heater. Though they cost a lot more, They can be two to three times more efficient compared to traditional electric resistance water heaters. The installation process is largely similar; however, since these systems extract heat from the air and then move it to the water, you'll need to install them in a location that offers at least 1,000 cubic feet of airspace with temperatures consistently ranging from 40°F to 90°F.

Heat pump water heaters are an innovative category, so many models feature Wi-Fi-connectivity and a companion app that allow you to monitor and operate the system remotely. A properly-maintained heat pump will last 13 to 15 years.

Pros

• Extremely energy efficient
• Relatively long-lasting
• Often feature Wi-Fi connectivity

Cons

• Higher upfront cost
• Needs to be set up in a spacious, wide-open area

Cost, including installation

• $1,200 and $3,500
• ENERSTAR-qualified heat pump water heaters qualify for a federal tax credit up to $2,000, covering 30% of the total project cost

Solar Water Heater

These systems consist of a rooftop solar collector that absorbs energy from the sun and uses it to heat water in a storage tank. In an ideal scenario, where your roof gets plenty of sun throughout the year, a solar water heater could reduce your water heating costs by up to 80%, according to the U.S. Department of Energy .

Systems can operate as either passive or active. In passive setups, water gets heated inside a rooftop tank and subsequently flows directly into the household plumbing system. These tend to be cost-effective yet perform optimally solely in sunny climates with mild weather conditions. Conversely, active configurations utilize water pumps along with heat exchangers for transferring hot water from an indoor storage tank back up through pipes to various outlets and devices within the house. Although these require more intricate installation and upkeep procedures, they offer greater resilience against sub-zero temperatures.

Solar water heating systems are exclusively designed for warming water; they do not provide energy that can be utilized to run household devices and electronic gadgets. Although these systems come with a higher price tag, their federal tax credits have no upper cap, contrasting with other types of water heater incentives that max out at either $600 or $2,000 based on the specific technology employed.

Pros

• Extremely energy efficient
• Simple to upkeep, particularly inert systems
• Shielded by an exceptionally generous federal tax credit

Cons

• Steep upfront costs
• The roof requires ample sunlight.

Cost, including installation

• $1,800 to $5,800
• Solar water heaters certified by Energy Star qualify for a federal tax credit covering 30% of the project costs, without any limit on the savings

What factors should you consider when selecting a water heater?

No matter which kind of water heater you're thinking about getting for your house, you'll need to consider several aspects. Below are the primary elements to keep in mind.

Start with capacity

It's essential to select a water heater that can supply sufficient hot water for your requirements. " A reliable plumbing contractor will inquire about alterations in water usage within the home, like whether kids have moved out or older relatives have moved in, since these situations could lead to decreased or increased demand compared to previous levels, according to Dietz.

Tank-style water heaters (regardless of whether they are conventional, heat pump, or solar-powered) usually have capacities ranging from 30 to 80 gallons. The volume generally aligns with the size of the home; for instance:

• For 1 to 2 individuals: 30 to 40 gallons.
• For 2 to 3 individuals: 40 to 50 gallons.
• For 3 to 4 individuals: 50 to 60 gallons.
• For groups of 5 or more people, you'll need between 60 to 80 gallons.

However, a more accurate measure for selecting the ideal water heater based on your household’s hot water demands is the first-hour rating, or FHR, which is detailed in the specifications provided. yellow EnergyGuide label , or detailed within the product documentation supplied by the manufacturer. This indicates the amount of hot water the system can deliver each hour when initially filled with hot water. The FHR is influenced by various elements including tank dimensions, energy type, and the capacity or scale of the heating component.

Preferably, your water heater’s First Hour Rating (FHR) should match closely with your household’s highest hourly usage — such as during mornings when multiple family members shower and appliances like the dishwasher and washing machine operate simultaneously. This recommendation comes from the Department of Energy. Energy Saver website features a useful calculator to ensure these figures are accurate.

How do tankless water heaters work? Their main specification concerning capacity is measured in gallons per minute, commonly abbreviated as GPM. This metric indicates the amount of hot water the system can provide within a specific timeframe. For small homes, a tankless heater with a peak flow rate between 2 to 3 GPM may suffice, whereas bigger residences could necessitate one capable of delivering up to 4 to 5 GPM at most.

Check the efficiency

The kind of water heater you select can significantly affect your energy expenses. Each category also includes varying levels of energy efficiency. Therefore, it's beneficial to contrast the Uniform Energy Factor (UEF) values when exploring different options. The UEF indicates how effectively a water heater converts energy into hot water as a percentage. A larger figure signifies reduced energy waste and decreased running costs.

The energy factor (UEF) for conventional water heaters typically begins at about 0.6, whereas tankless models boast UFs of 0.9 or more. For heat pump water heaters, the UEF values span from 3 to 4, indicating an exceptional operational efficiency ranging between 300% to 400%.

Consider the features

It could be beneficial to invest extra money in improvements that boost the ease of use, functionality, or longevity of your water heater.

• Scale prevention. When your residence experiences hard water, mineral accumulation within your water heater may decrease its longevity. Certain high-end models with both tanked and tankless designs incorporate scale prevention technology. This innovation does more than just prolong the device’s lifetime; it also minimizes the frequency at which professionals must service the system, potentially saving you several hundred dollars throughout the appliance’s operational period.
• Technology upgrades. High-end water heaters, particularly those in the heat pump range, frequently include advanced features designed for greater comfort and security. With Wi-Fi capability, owners have the ability to oversee and control their units from afar using an associated smartphone application. This feature also allows them to get notifications about necessary upkeep. According to specialists, incorporating leak detection systems is highly beneficial as well because these devices can warn you early on about potential problems before they escalate into major failures.
• Warranty length. The duration of a product’s warranty serves as an indicator of the manufacturer's confidence in their item’s quality. This observation holds particularly true for water heaters since inferior models tend to malfunction rapidly. Warranty periods typically span between 3 to 12 years. Water heaters equipped with extended warranties often come with additional robust components such as brass drain valves, known for their durability compared to plastic alternatives. Furthermore, these units usually feature tanks lined either with glass or ceramics, providing superior resistance against rust and corrosion over standard metallic versions.

Which are the top-rated water heater manufacturers?

Many water heater brands are available today. Below are five recommendations from our specialists, derived from product evaluations and discussions with seasoned contractors experienced in installing such systems during renovations and constructions of new homes.

✔️ A.O. Smith: Central to the A.O. Smith brand is water heating, alongside their water treatment solutions. They stand out as a frontrunner in both hybrid and tankless water heaters, earning accolades from the Good Housekeeping Home Reno Awards. 2023 and 2024 In these two categories, A.O. Smith water heaters are available at Lowe's, adding to their convenience as a brand.

✔️ Bradford White: Established in 1881, this company has grown to encompass nearly every type of water heater, frequently introducing novel advancements to its machinery. Although all their items are produced domestically within the U.S., components and materials are sourced globally.

✔️ GE: The company that initially began as a manufacturer of light bulbs has expanded into numerous product lines, such as water heaters. They have introduced several improvements to traditional storage tank water heaters and have also ventured into the realm of tankless water heating systems.

✔️ Rheem: Our specialists were highly impressed with the general excellence of Rheem water heaters, particularly a tankless model that underwent rigorous real-world testing. This brand stands out as one of the few manufacturers offering all types of water heating solutions, such as conventional tanks, tankless units, heat pumps, and solar-powered models.

✔️ State Water Heaters: A.O. Smith Corporation owns the State brand, which delivers similar levels of performance and dependability across its range of tank and tankless water heaters. Many plumbing experts prefer this brand due to its proven history spanning over seven decades.

Why trust Good Housekeeping?

I have spent nearly 25 years evaluating and documenting information about water heaters. During this period, I have gained extensive knowledge of leading manufacturers within this sector, allowing me to identify those with superior performance histories regarding durability and dependability. Additionally, I have led multiple research studies focusing on energy and water conservation, collaborating extensively with external specialists from governmental bodies, businesses, and service industries. As the Director of Home Improvement & Outdoor at the Good Housekeeping Institute , I oversee water heater testing in our Lab, as well as the continuous in-home, survey-based consumer testing that allows us to evaluate these devices in real-world conditions.

For this water heater guide, our team pulled together insights from trade shows and industry events, like the International Builders' Show , and interviewed various experts from the field. We also drew on our hands-on experience overseeing the installation of several water heaters in the homes of expert testers as part of our annual Home Reno Awards This experience has provided us with comprehensive understanding of the installation procedure and allowed us to monitor performance and energy savings over an extended period. Additionally, engaging directly with the process has enhanced our comprehension of various aspects related to usage and upkeep.