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Water Heater Buying Guide 2025
Choosing the right water heater is essential for comfort, energy efficiency, and cost savings. Whether you're a homeowner, plumber, contractor, or business owner, this comprehensive water heater buying guide will help you navigate the process of selecting the perfect water heater for your needs.
| Water Heater Buying Guide |
What is a Water Heater?
A water heater provides hot water for residential and commercial use, making it essential for daily tasks like showering, flushing toilets, and washing dishes. Choosing the right model ensures a steady hot water supply, optimizes energy efficiency, and keeps costs in check. Whether you opt for a tankless, storage tank, or hybrid system, the right choice can lead to significant savings and improve efficiency.
Types of Water Heaters
There are several types of water heaters available, each with distinct benefits and limitations fit for varying situations. Choosing a water heater depends on your household or business needs, energy efficiency goals, and budget.
Storage Tank Water Heater
The most common type, storage tank water heaters feature an insulated tank that stores heated water until needed. They range from 20 to 80 gallons in capacity and can run on electricity, natural gas, propane, or oil.
- Pros: Affordable initial cost, easy to install and maintain, consistent hot water supply
- Cons: Higher energy costs due to standby heat loss, bulky design requires significant space, shorter lifespan compared to tankless units.
Tankless Water Heater
Tankless water heaters, also called on-demand or instantaneous water heaters, heat water only when needed, eliminating the need for a storage tank. These units use high-powered burners or electric heating elements to instantly heat water as it flows through the system, providing a continuous supply of hot water.
- Pros: Energy-efficient operation with no standby heat loss, compact, space-saving design, and longer lifespan than storage tank models
- Cons: Higher upfront costs, limited flow rate for large households, and may require upgrades to gas or electric infrastructure.
Learn more: Water Heater Comparison: Tankless vs. Tank
Heat Pump Water Heater
Heat pump water heaters, also known as hybrid water heaters, use electricity to transfer heat from the surrounding air or ground to heat water efficiently. Instead of generating heat directly, they move existing heat, making them up to three times more energy-efficient.
- Pros: Extremely energy efficient with lower energy costs, environmentally friendly option, ideal for warm climates where air conditioning is common
- Cons: Higher initial investment, slower heating process compared to gas models, requires ample space with good ventilation
Condensing Water Heater
Condensing water heaters are highly efficient systems designed for homes using natural gas or propane as a fuel source. They reuse exhaust gases to preheat cold water, achieving up to 95% efficiency.
- Pros: High energy factor (EF) ratings reduce energy costs, suitable for large households with high hot water demand, lower emissions than standard gas models
- Cons: Limited availability in smaller sizes, requires proper venting systems, and higher upfront cost than traditional gas models.
Solar Water Heater
Solar water heaters use active systems powered by solar panels to generate heat directly from sunlight. These systems typically include solar collectors, insulated storage tanks, and piping to circulate heated water.
- Pros: Renewable energy source with significant energy savings, reduces reliance on gas and electric systems, potential tax credits or rebates available in some regions
- Cons: High installation costs, dependent on sunlight availability, backup system required, maintenance may be more complex than other types
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When choosing a hot water heater, consider factors like your household size, hot water usage patterns, energy efficiency goals, and fuel type. These considerations will help you determine which type of unit best suits your needs—tankless heaters, storage tank models, or hybrid systems.
Fuel Source Options
Choosing the right fuel source is crucial for optimizing energy efficiency, cost savings, and environmental impact. Here’s a comparison of the most common options:
| Fuel Type | Pros | Cons |
|---|---|---|
| Natural Gas |
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| Electric Models |
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| Solar Water |
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Natural gas is ideal for fast heating and affordability, while electric models offer easy installation with no emissions. Solar water heaters are environmentally friendly, but depend on sunlight availability.
Size and Space Requirements
When selecting a water heater, ensure it fits your available space while meeting your household’s hot water demand.
- Storage tank water heaters require significant room due to their insulated tank design, typically holding 20 to 80 gallons of water.
- Tankless units, on the other hand, offer a compact, space-saving design, but may require additional ventilation or infrastructure upgrades.
- Natural gas tankless models require proper venting, including fresh air and exhaust vents, especially in confined spaces.
- Electric tankless units do not need venting, making them easier to install in tight areas.
Energy Efficiency & Environmental Impact
When selecting a water heater, consider its energy efficiency and environmental impact. High-efficiency models with Energy Star certification reduce energy costs and minimize environmental harm. Key metrics include:
- Energy Factor (EF): Measures efficiency based on energy input versus output
- Uniform Energy Factor (UEF): An updated metric introduced in 2017, UEF reflects real-world usage patterns and simplifies comparisons between models
- Energy Star Ratings: Indicates top-performing units that meet strict efficiency standards
Investing in a high-efficiency water heater, such as a heat pump model with a UEF of 3.3 or higher, can save money over time by reducing annual operating costs. These models also lower greenhouse gas emissions, making them an environmentally friendly choice.
Warranty Considerations
When buying a water heater, carefully review the warranty coverage for parts and labor. Longer warranties often indicate higher-quality construction and durability. Features like brass drain valves and insulated tanks contribute to extended lifespans.
High-efficiency models may also come with longer warranties, offering added peace of mind. Be sure to compare warranty terms across different water heater types and brands to ensure you’re investing in a reliable unit that meets your needs.
Additional Water Heater Features
When selecting a water heater, consider these key features that enhance performance, efficiency, and convenience:
- Tank Material: Stainless steel tanks resist corrosion better than glass-lined tanks, ensuring longer durability.
- Anti-scale Devices: Prevent mineral buildup inside tanks or pipes, improving efficiency and extending unit lifespan.
- Leak Detection Systems: Alerts you to potential leaks early, avoiding costly water damage.
- Recovery Rate: Measures how quickly hot water is replenished after use, which is crucial for peak usage times.
- Digital Controls & Smart Technology: Allow precise temperature adjustments and remote monitoring for convenience.
- Adjustable Thermostat: Lets you set the desired water temperature easily for personalized comfort.
- Noise Level: Quieter models are ideal for residential spaces, reducing disruptive sounds during operation.
Image source: Unsplash
Water Heater Sizing Tips & Considerations
Choosing the right size water heater ensures you have enough hot water without wasting energy. Here are key considerations for sizing:
- Household Size: Match tank capacity to the number of occupants.
- Hot Water Usage: Assess peak demand times (showers, laundry, dishwashing).
- Flow Rates: Understand average flow rates measured in gallons per minute (gpm) for fixtures and appliances.
- Recovery Rate: Measures how quickly the unit replenishes hot water; gas heaters recover faster than electric models.
- Simultaneous Use: Add up flow rates of fixtures used at the same time.
For optimal sizing, factor in household size, peak usage times, and flow rates. Tankless models offer on-demand heating, while tank models require adequate storage capacity.
Water Tank Size
Choosing a water heater tank size is essential for efficiently meeting your household's hot water needs. Here’s a typical breakdown based on household size:
- 1 to 2 people: 30-gallon water heater
- 2 to 3 people: 40-gallon water heater
- 3 to 4 people: 40-50 gallon water heater
- 5 or more people: 50-80 gallon water heater
Water heaters consume 18% of your home’s annual energy usage. Choosing the right size ensures you avoid higher energy bills from maintaining too much hot water or excessive wear and tear from a unit too small.
How Much Does a Water Heater Cost?
The new water heater cost varies depending on the type, size, and energy efficiency. Here’s a breakdown of average price ranges for different types of water heaters:
- Tank Water Heater Cost: $500 to $1,500 (electric), $700 to $1,400 (natural gas). High-efficiency models range from $1,500 to $2,000.
- Tankless Water Heater Cost: $600 to $900 (electric), $1,700 to $2,500 (natural gas). Installation costs range from $1,400 to $3,900.
- Heat Pump Water Heater Cost: $1,000 to $3,000, depending on size and efficiency.
- Solar Water Heater Cost: $2,000 to $5,000, including installation and solar panels.
- Condensing Water Heater Cost: $800 to $2,000, ideal for natural gas users.
These average hot water heater cost options include the unit and installation, but additional plumbing upgrades or venting may increase the total price. Investing in a high-efficiency model can save money on energy bills over time.
Installation, Maintenance, and Replacement Costs
In addition to the unit cost, buyers should budget for the water heater installation cost, which varies based on the type of heater and project complexity. Labor costs to install a water heater typically range from $500 to $1,500.
Regular maintenance, such as flushing tanks or descaling tankless systems, ensures efficiency and extends lifespan. Be sure to consider any additional cost to replace water heater units when deciding where to buy a water heater.
Older models often require more frequent repairs, making a new water heater worthwhile. Replacement costs depend on durability; tankless units last longer but are costlier upfront. Investing in a modern unit reduces long-term maintenance expenses.
Explore Water Heaters at NYDirect
At NYDirect, we offer high-quality residential and commercial water heaters, including tankless, solar, and hybrid models. Enjoy competitive pricing, fast shipping, and expert support today!
- Stiebel Eltron Tempra Whole House Electric Tankless Water Heaters
Stiebel Eltron Tempra® Whole House Electric Tankless Water Heaters
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$439.00
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$849.00
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Tempra® is manufactured by Stiebel Eltron, a pioneer and leader in tankless water heating technology for over 90 years. Endless hot water, advanced...
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$439.00
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$849.00
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$439.00
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$439.00
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The Stiebel Eltron Tempra delivers endless hot water on demand, saving energy and space. Ideal for whole-house use, its advanced technology ensures consistent performance.
Features:
- Space-Saving Design: Compact design saves valuable space, no venting required.
- Advanced Flow Control™: Maintains consistent water temperature with German-patented technology.
- Energy Efficient: Reduces energy consumption, lowering utility bills.
- Durable & Reliable: Offers proven reliability from the world leader, includes a 7/3-year warranty.
- Noritz EZ111-DV-NG Indoor Tankless Water Heater
Noritz EZ111-DV-NG Indoor Tankless Water Heater
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$1,875.16
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$1,875.16
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Add extra comfort to your home when you install the Noritz EZ11 DV Indoor Tankless Water Heater—it's a must-have for homeowners! Key Features: Ene...
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$1,875.16
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The Noritz EZ111-DV-NG indoor tankless water heater adds extra comfort to your home with its on-demand hot water and energy-saving operation. Perfect for smaller homes or apartments, it features a corrosion-resistant stainless steel heat exchanger and flexible temperature control.
Features:
- Endless Hot Water: Provides a reliable and consistent supply on demand.
- Energy Star Rated: Lowers energy consumption and improves savings.
- Corrosion Resistant: Austenitic SS316L heat exchanger for superior durability.
- Flexible Control: Adjust output temperature from 100°F to 140°F.
- Noritz NRC661-DV Indoor Condensing Direct Tankless Hot Water Heater
Noritz NRC661-DV Indoor Condensing Direct Tankless Hot Water Heater 6.6 GPM
In stock
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$1,052.69
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The ENERGY STAR rated NRC661, Noritz’s newest efficient condensing model with a half inch gas line. Featuring the same energy-saving condensing te...
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$1,052.69
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$1,052.69
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The ENERGY STAR-rated Noritz NRC661-DV is an efficient condensing model with a half-inch gas line, offering endless hot water and eco-friendly operation. Its high-efficiency performance helps homeowners looking to reduce their carbon footprint, with an Energy Factor of 0.91 for natural gas.
Features:
- Endless Hot Water: Provides continuous hot water on demand.
- High Efficiency: Saves on energy costs with a 0.91 Energy Factor.
- Eco-Friendly: Low NOx emissions reduce environmental impact.
- Flexible Venting: Vents with Schedule 40 PVC for ease of installation.
- Noritz NR501-OD-NG Outdoor Tankless Water Heater
Noritz NR501-OD-NG Outdoor Tankless Water Heater
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$644.48
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The Noritz NR50 outdoor model is the newest and most affordable model for apartments, condominiums and townhouses with 1-2 showers. NR50 outdoor mo...
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$644.48
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$644.48
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$644.48
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$644.48
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from $644.48
Designed for apartments, condos, and townhouses with one to two showers, the Noritz NR501-OD-NG Outdoor Tankless Water Heater eliminates the need for expensive venting. Upgrade to continuous hot water with its compact design, ideal for the southeastern USA.
Features:
- Outdoor Installation: Saves indoor space; no venting required.
- Long Warranty: 12 years on heat exchanger for peace of mind.
- Compact Size: Perfect for smaller homes.
- 0.5 GPM Activation: Handles higher incoming water temperatures.
- Stiebel Eltron 235969 PSH Plus Wall-mounted Tank Water Heaters
Stiebel Eltron 235969 PSH Plus Wall-mounted Tank Water Heaters
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$699.00
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The PSH Plus storage water heater is a new style of compact water heater that can be installed wherever hot water is needed. The unique wall-mounte...
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$699.00
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$699.00
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The Stiebel Eltron PSH Plus is a compact wall-mounted electric tank water heater designed to save floor space while providing reliable hot water. Featuring adjustable temperature control, CoPro glass enamel coating, and thick polyurethane insulation, it’s suitable for residential and commercial use and ensures a long service life.
Features:
- Saves Space: Wall-mounted design frees up valuable floor area.
- Long Tank Life: Special CoPro glass enamel coating ensures durability.
- Easy Access: Front-located temperature control for simple adjustments.
- Thick Insulation: 1 7/8" (48 mm) polyurethane minimizes standby losses.
Talk to the Water Heater Experts at NYDirect
Need assistance choosing a water heater or understanding installation costs? At NYDirect, our team of experts is ready to guide plumbers, contractors, homeowners, and business owners beyond our hot water heater buying guide. With decades of expertise, we’re here to help you find the perfect solution for your hot water needs.
Enjoy personalized service and seamless support from America’s trusted plumbing supplier. Contact us today to get started!
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FAQs About Buying a Water Heater
Plumbers offer expert advice and professional installation, but purchasing directly from NYDirect can offer competitive pricing and access to Pro Membership benefits, making it a solid best place to buy a water heater.
Trusted brands like Stiebel Eltron and Noritz are known for their durability, energy efficiency, and reliable performance.
Tank water heaters typically last eight to 12 years, while tankless water heaters can last over 20 years with proper maintenance.
Match your household size with the appropriate tank capacity. Generally, 30 to 40 gallons is suitable for one to two people, while larger households may require 50 gallons or more
Tankless models and heat pump water heaters offer superior energy efficiency, reducing energy consumption and saving you money.
The water heater installation cost varies depending on the type of unit. Tank heaters typically range from $250 to $1,000 plus installation, while tankless models can cost anywhere between $1,000 and $3,000 plus installation.
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