What’s the Best Kind of Water Heater?

When choosing a new water heater for your home there are more choices than ever. Here’s a comparison of the most common types of water heater and the advantages and disadvantages of each style.

Electric Tank Water Heater

Heats and stores water using electricity

• Purchase Cost (less installation): $300 – $1,200
• Advantages: Lowest upfront cost, Good for small or large households
• Disadvantages: More expensive to operate

Gas Tank Water Heater

Heats and stores water using natural gas or propane

• Purchase cost (less installation): $380 to $1,500
• Advantages: Lowest upfront cost, Good for small or large households
• Disadvantages: More expensive to operate

Tankless Gas Water Heater

Heats water on demand when it’s needed.

• Purchase cost (less installation): $1000+
• Advantages: Good for smaller households, lower operating cost, small footprint
• Disadvantages: More expensive to operate

Electric Heat Pump Water Heater

Uses electricity to move heat from one place to another

• Purchase cost (less installation): $1,000+
• Advantages: 2-3 times more efficient than a conventional tank water heater.
• Disadvantages: Not a good option for colder climates

Condensing Gas Water Heaters

Heats and stores the water using gas, then uses the combustion gas to further heat the water.

• Purchase cost (less installation): $1,000+
• Advantages: Lowest operating cost. Can save a household $100+ a year
• Disadvantages: Higher up-front cost

Hybrid Tankless Water Heater

Combines the advantages of a small storage tank with a tankless water heater. 

• Purchase cost (less installation): $1,000+
• Advantages: Lower operating cost. Less standby heat loss than a conventional tank water heater, and no “cold water sandwich” that can occur with tankless water heaters.
• Disadvantages: Higher up-front cost

Need help choosing the best water heater for your needs? Call Ostrom. We can help with all your plumbing and hot water needs.