With so many options available, finding the ideal water heater can be challenging. Not all water heaters work the same, and the best choice depends on your household’s specific needs.

When comparing water heaters, consider factors like household size, hot water usage, fuel type availability, initial costs, and long-term energy savings.

Types of Water Heaters

There are three primary water heater types:

Storage Water Heaters

Storage water heaters — widely used in the U.S. — store ready-to-use heated water in a tank of about 20 to 80 gallons. When a faucet is turned on, water is pulled from the top of the tank, and fresh cold water enters from the bottom, ensuring a constant supply. These water heaters can run on natural gas, propane, oil, or electricity.

Tankless Water Heaters

Tankless water heaters, also called on-demand systems, heat water only when needed. Cold water flows through a heat exchanger, which heats it instantly with either electricity or gas. This system avoids standby energy losses and provides hot water continuously without waiting for the tank to refill. According to the U.S. Department of Energy, tankless heaters are 24–34% more efficient for homes using less than 41 gallons daily. While they have higher upfront costs, tankless water heaters last longer and reduce energy bills.

Heat Pump Water Heaters

Heat pump water heaters warm water by pulling heat from the surrounding air to the water tank, like a reverse refrigerator. These systems are highly energy-efficient, helping to lower electricity bills. However, they require warm surroundings and more space than other types.

Choosing Based on Fuel Type

Different water heaters can run on different fuels, so it’s important to pick the one that aligns best with your home’s setup and hot water needs:

• Electricity: Electric tankless heaters are compact and efficient, although they may require an upgrade to your home’s electrical system.
• Oil: Oil-powered storage water heaters are less common but are available in some areas.
• Geothermal Energy: Homes with geothermal heating systems can use geothermal water heaters for efficient heating.
• Natural Gas and Propane: Both fuels power storage and tankless water heaters, as well as tankless coil and indirect water heaters.

Recommendations by Household Size

Single-Person Homes

A tankless water heater is an efficient choice for a one-person household. Eliminating standby energy costs helps offset the higher upfront investment over time.

Couples

For two-person households, tankless water heaters are still a good option, as they can be sized according to your hot water demands. In larger households, however, tankless systems may struggle to deliver a consistent flow of hot water to multiple high-demand applications at once, requiring additional heating capacity.

Family Homes

For larger families, conventional storage water heaters are ideal, as they can handle higher simultaneous hot water usage. 

Dual tankless systems are a possible option for families seeking energy savings and consistent hot water flow without compromising convenience.

Get Expert Help

Need help choosing the right water heater? Contact Brea Plumbing Heating & Air Conditioning at (714) 459-5673. Our team is ready to help you find the best solution for your home!