Water heaters are a basic part of every home, providing hot water for bathing, cooking, washing dishes, doing laundry, and cleaning. Choosing the right water heater is important because it affects your comfort, energy bills, and long-term savings.
There are different types of water heaters available today, each with its own working system, pros and cons, and price range. Below is a detailed explanation of the main types, followed by a guide to help you choose the best one based on your needs.
Types of Water Heaters
1. Storage Tank Water Heater
How it Works:
This is the most common type of water heater found in homes. It has a large insulated tank that stores hot water. The heater keeps the water hot all the time, so it’s ready when you need it. The tanks usually hold between 30 to 80 gallons of water.
Pros:
- Low purchase and installation cost
- Easy to maintain
- Hot water is ready to use immediately
Cons:
- Limited supply; once the tank is empty, you must wait for it to refill and heat again
- Wastes energy by keeping water hot even when not being used (called standby heat loss)
Best For:
Families and homes with consistent daily hot water use.
2. Tankless (On-Demand) Water Heater
How it Works:
Instead of storing water, this unit heats water only when it’s needed. When you turn on the hot water tap, cold water flows through a heating element, which instantly heats it.
Pros:
- Hot water is available anytime, as long as the system can keep up
- No energy wasted heating stored water
- Compact design saves space and can be mounted on a wall
Cons:
- Costs more to buy and install than a storage tank
- May not supply enough hot water if multiple showers or appliances are used at once
Best For:
Small to medium-sized households that want energy efficiency and space savings.
3. Heat Pump (Hybrid) Water Heater
How it Works:
This type doesn’t generate heat directly. Instead, it pulls heat from the air or ground (like an air conditioner in reverse) and uses it to heat the water. It still has a storage tank.
Pros:
- Uses 60% to 70% less energy than standard electric water heaters
- Lower operating costs in the long run
- Environmentally friendly
Cons:
- Higher initial cost
- Works best in warm or mild climates
- Requires more space and good ventilation
Best For:
Eco-conscious homeowners living in warmer areas with room for a larger system.
4. Solar Water Heater
How it Works:
This system uses solar panels – usually placed on the roof – to absorb sunlight and convert it into energy to heat water. Most models include a backup electric or gas heater for cloudy days or high demand.
Pros:
- Very low monthly energy costs after installation
- Clean and renewable energy source
- Reduces dependency on electricity or gas
Cons:
- High upfront cost for equipment and installation
- Requires a sunny climate for best performance
- May need regular maintenance
Best For:
Homes in sunny areas where homeowners want to invest in green technology and reduce utility bills long-term.
5. Condensing Water Heater
How it Works:
This type is similar to a gas water heater but is more efficient. It uses the heat from exhaust gases (which would normally be wasted) to help heat the water. These are usually larger models used in homes that already use gas for heating.
Pros:
- Higher energy efficiency than regular gas heaters
- Saves money on gas bills over time
- Good choice for homes with high water usage
Cons:
- Only works with gas systems
- More expensive than standard gas heaters
- Requires venting for exhaust gases
Best For:
Large households with gas lines and heavy hot water usage.
How to Choose the Right Water Heater?
Choosing the right water heater is not just about the price – it’s about how well it fits your daily needs, space, and energy use. Here are important factors to consider:
1. Number of People in Your Household
- 1 to 2 people: A 30- to 40-gallon storage tank or a small tankless system should work fine.
- 3 to 4 people: A 40- to 60-gallon tank or a mid-size tankless unit is ideal.
- 5 or more people: You may need a tank of 70+ gallons or more than one tankless system working together.
2. Hot Water Usage Habits
- Do you often use hot water for laundry, showers, and cooking at the same time?
- Tankless systems are best for continuous hot water, but can be overwhelmed by multiple uses.
- Storage tanks work well if your usage is spread out during the day.
3. Energy Source
- Electric: Found almost everywhere; cheaper units, but may have higher operating costs.
- Gas (Natural or Propane): Often cheaper to run, heats water quickly.
- Solar: Uses free solar energy, best if you want to reduce your carbon footprint.
- Hybrid: Ideal if you want high efficiency and use electricity.
4. Budget
- Low Budget: Traditional storage tank water heaters are affordable and reliable.
- Medium Budget: Tankless or hybrid systems offer better energy savings over time.
- High Budget: Solar or condensing water heaters have high upfront costs but save money long-term.
5. Available Space
- Tankless water heaters can be wall-mounted and take up little space.
- Storage tanks, hybrids, and solar systems need more room, often in a utility area or garage.
6. Climate and Location
- Warmer climates are ideal for solar and heat pump heaters.
- Gas or electric tank systems are more reliable in colder climates.
7. Efficiency Ratings
Look for water heaters with high UEF (Uniform Energy Factor) or Energy Star ratings. Higher efficiency means lower energy bills.
Final Thoughts:
There isn’t a water heater that works for everyone. How much hot water you use, the energy source in your house, your climate, the amount of space you have available, and your willingness to pay up front will all influence your best option. A storage tank is an excellent choice if you’re looking for a straightforward and reasonably priced solution. Consider a tankless, solar, or hybrid model if you have the funds and want to save money over the long run.
Regardless of the type you choose, maintaining your system in good condition is just as important as selecting the right one. At Order a Plumber, we provide professional water heater services – including detailed inspections, expert repairs, and preventative maintenance – to help your system run efficiently and reliably. Our experienced team utilizes advanced tools to diagnose and resolve issues promptly, helping you avoid unexpected breakdowns and costly replacements.
FAQ‘s
Q: How many types of water heaters are there?
A: There are five main types:
- Storage tank
- Tankless (on-demand)
- Heat pump (hybrid)
- Solar
- Condensing
Q: What is the most efficient type of water heater?
A: Solar and heat pump water heaters are the most energy-efficient.
Q: How do you determine what kind of water heater you need?
A: You choose based on how much hot water you use, your energy source (gas, electric, solar), space, climate, and budget.
Q: What factors should you consider before choosing a water heater?
- Household size
- Daily hot water use
- Energy type available
- Cost (initial and long-term)
- Space for installation
- Climate in your area
- Energy efficiency rating