
September 17, 2025
8 Best Water Heaters to Consider for Your Home or Business
Choosing a new water heater is a significant decision for any homeowner or business owner. It’s an appliance you rely on daily for everything from hot showers to clean dishes, so finding one that is efficient, reliable, and fits your specific needs is crucial. With so many options on the market, it can be tough to know where to start. That’s why our team has put together this guide to help you understand the different types of water heaters available and highlight some of the best models to consider.
We’ll explore several key areas to help you make an informed choice:
- Understanding different types of water heaters
- Factors to consider when choosing a water heater
- 8 best water heaters for your home or business
- Professional installation and maintenance
🤔 Understanding Different Types of Water Heaters

Before you can choose the best water heater, it’s helpful to understand the main types available. Each comes with its own set of advantages and is suited for different situations.
Conventional Storage Tank Water Heaters
This is the most common type of water heater. It features an insulated tank that holds and heats a specific amount of water, typically between 20 to 80 gallons. A heating mechanism, either electric or gas, keeps the water hot and ready for use.
- Pros: They have a lower initial purchase price and are relatively simple to install, especially if you’re replacing a similar unit.
- Cons: They can be less energy-efficient because they continuously heat water in the tank, leading to standby heat loss. They also have a limited supply of hot water; once the tank is empty, you have to wait for it to refill and heat up again.
Tankless Water Heaters (On-Demand)
Tankless water heaters, as the name suggests, heat water directly without using a storage tank. When you turn on a hot water tap, cold water travels through a pipe into the unit, where a gas burner or an electric element heats it instantly.
- Pros: They are highly energy-efficient because they only heat water when needed, which can save you money on utility bills. They also provide a continuous supply of hot water.
- Cons: The initial cost is higher than a traditional tank model. Depending on your home’s setup, installation can be more complex and may require upgrades to your electrical or gas lines.
Heat Pump Water Heaters (Hybrid)
Heat pump water heaters are a more energy-efficient option that combines a traditional electric storage tank with a heat pump. Instead of generating heat directly, the heat pump captures warmth from the surrounding air and transfers it to the water in the tank.
- Pros: They are incredibly efficient, often using up to 60% less electricity than standard electric water heaters.
- Cons: They have a higher upfront cost and require more space for installation, needing at least 1,000 cubic feet of uncooled air space to operate effectively.
💧 8 Best Water Heaters for Your Home or Business

Here are some of the top-performing water heaters on the market, covering various types and needs.
1. Rheem Performance Platinum (Gas Tank)
A reliable and efficient option, the Rheem Performance Platinum gas tank water heater offers a great balance between performance and value.
- Features a self-diagnostic system for easy troubleshooting.
- Durable design ensures long-lasting performance.
- Ideal for homeowners looking for a dependable and cost-effective water heating solution.
- Highly efficient, helping to reduce energy bills over time.
2. Rinnai RUC98iN (Tankless)
This tankless gas water heater is known for its high efficiency and powerful performance, making it a standout choice for larger households.
- Provides endless hot water for multiple fixtures simultaneously.
- Compact, space-saving design compared to traditional tanks.
- Equipped with energy-saving features to lower utility costs.
- Suitable for families with high hot water demands.
3. AO Smith Signature Premier (Gas Tank)
The AO Smith Signature Premier gas tank water heater is a workhorse built for longevity and powerful heating.
- High energy efficiency rating compared to other tank models.
- Durable construction designed for extended use over the years.
- Capable of delivering hot water quickly and consistently.
- Great for households looking for a dependable and robust tank water heater.
4. Ecosmart ECO 27 (Electric Tankless)
Perfect for homes in warmer climates, the Ecosmart ECO 27 electric tankless water heater is compact and energy-efficient.
- Precise temperature control for a customized hot water experience.
- Space-saving design fits easily into small or tight areas.
- Ideal for energy-conscious homeowners looking to save on electricity.
- Works best in regions where groundwater temperatures are higher.
5. Bradford White RE250T6 (Electric Tank)
A dependable electric storage tank water heater, the Bradford White RE250T6 stands out for its durability and energy-saving design.
- Well-insulated to reduce standby heat loss.
- Built with high-quality components for improved reliability.
- Simple to maintain and designed for long-term use.
- A solid choice for homeowners seeking a dependable and affordable electric tank model.
6. Stiebel Eltron Tempra 24 Plus (Electric Tankless)
This premium German-engineered tankless water heater delivers top-tier performance with consistent hot water temperatures.
- Handles fluctuations in demand without compromising performance.
- Energy-efficient design helps reduce utility costs.
- Compact and sleek, making it a great fit for modern homes.
- An excellent option for homeowners seeking a high-quality, reliable electric tankless model.
7. Rheem Gladiator (Electric Smart Water Heater)
Combining efficiency with smart technology, the Rheem Gladiator hybrid water heater offers innovative features for modern living.
- Can be controlled remotely via smartphone for added convenience.
- Equipped with leak detection to provide peace of mind.
- Highly efficient hybrid design reduces energy usage.
- Perfect for tech-savvy homeowners looking for advanced functionality in a water heater.
8. Takagi T-H3-DV-N (Tankless)
A high-efficiency gas tankless water heater, the Takagi T-H3-DV-N is suitable for both residential and commercial applications.
- Delivers a high flow rate, meeting the demands of multiple fixtures at once.
- Condensing technology ensures significant energy savings.
- Compact design frees up valuable space in your home or business.
- Ideal for large households or commercial settings with high hot water needs.
👉 Factors to Consider When Choosing a Water Heater

With a better understanding of the types, here are some key factors to weigh when making your decision.
Fuel Type, Availability, and Cost
The type of energy source you use is a crucial factor in choosing a water heater. Consider the following:
- Energy Source Options: Common choices include gas, electric, and propane.
- Availability: Check what fuel types are readily available in your area.
- Cost: Evaluate both the upfront and long-term costs of each fuel type. For example, natural gas may be cheaper in the long run but could have higher installation costs if you don’t already have a gas line.
Size and Capacity
Choosing the right size and capacity ensures your water heater can meet your household’s needs:
- Tank Models: Look at the First-Hour Rating (FHR), which shows how many gallons of hot water the unit can supply in the first hour.
- Tankless Models: Focus on the flow rate, measured in gallons per minute (GPM), to determine if it can handle multiple uses (e.g., running a shower and dishwasher at the same time).
- Household Size: Larger households typically need higher capacity units than smaller ones.
Energy Efficiency
Energy efficiency impacts both the environment and your monthly bills. Look for these ratings:
- Energy Factor (EF) or Uniform Energy Factor (UEF): The higher the rating, the more efficient the water heater.
- Savings Potential: High-efficiency models might cost more upfront but can save you money in operating costs over time.
- Energy-Saving Features: Many newer models include heat traps, insulation, or smart controls to boost efficiency.
Cost
Your budget should account for more than just the purchase price. Consider:
- Initial Purchase Price: How much the unit costs upfront.
- Installation Costs: Some models, like heat pumps or gas heaters, might require specialized installation, which can increase costs.
- Operating Costs: High-efficiency models could save you money on energy bills in the long term.
- Repairs and Maintenance: Factor in the cost of maintaining the unit throughout its lifespan.
Space Requirements
Make sure the unit you choose fits into your home and functions properly in the space available:
- Physical Space: Measure the area where the unit will be installed to ensure it fits.
- Ventilation Needs: For gas or propane models, ensure proper ventilation to avoid safety hazards.
- Clearance Needs: Heat pump water heaters, for example, require clearance around the unit to function effectively.
- Utility Connections: Check if the unit’s location has easy access to necessary utilities like water, gas, or electricity.
By carefully considering these factors, you can select a water heater that balances performance, cost, and efficiency for your household.
🤝 Trust Our Team for Your HVAC Needs
Choosing the best water heater is just the first step. Proper installation and regular maintenance are essential to ensure your new unit operates safely, efficiently, and for its full expected lifespan. An incorrect installation can lead to poor performance, higher energy bills, and even safety hazards.
If you’re ready to upgrade your water heater or need service for your current system, our team is here to help. Our well-trained, certified technicians have the expertise to handle all types of water heater installations, repairs, and maintenance. We are committed to providing reliable service and ensuring your complete comfort and satisfaction. Contact us today to schedule a consultation and find the perfect water heating solution for your home or business.
