Updated on Oct. 29, 2024
If you want a constant supply of hot water while saving money on your energy bill, the best tankless water heater may be an ideal choice.
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Unlike storage water heaters, the best tankless water heater heats water directly. Also known as “on-demand” units, tankless hot water heaters take up less space than storage water heaters and use 30% to 50% less energy, which translates to lower energy bills.
“Tankless water heaters are known for providing hot water as it’s needed rather than storing the water in a limited capacity by the tank size,” explains Jessie Cannizzaro, a master plumber who owns Milestone Plumbing. “This is one of the positive things that a tankless water heater provides, more efficiency by not heating water that is not being used.” Cannizzaro says that tankless water heaters can either be used as a primary water heating source for houses or as a supplemental unit for portions of the home.
If you’re ready to upgrade your water heater, take a look at our finds for the best tankless water heater options and choose which unit suits your needs.
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For the average family of four, you can’t go wrong with the Rinnai Condensing Tankless Water Heater. This natural gas model is our pick for the overall best tankless water heater because it can heat up to seven gallons per minute of water.
However, running it around four gallons per minute will cost you only about $130 a year to operate. It’s Energy Star-certified, and you’ll have enough water to run the dishwasher and two showers simultaneously. If you have higher water needs, there are models under the same line capable of up to 11 gallons per minute.
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You’ll get hot water on demand without blowing your budget with the Ecosmart Tankless Electric Water Heater. This electric unit can heat three gallons per minute when the incoming water temperature is as low as 37 degrees Fahrenheit, making it an excellent option for homes in the Northern United States or in homes with a large tub or Jacuzzi. The digital temperature control allows you to set your temperature in one-degree increments.
“We just got our electric bill, and it dropped by 62 dollars. We love the space we save and the fact that now we can finally fill the tub without running out of hot water,” says five-star reviewer Shawn Roberts.
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If you’re looking to go electric and wondering about the best tankless water heater for the money, consider the Stiebel Eltron Tankless Water Heater. This model has an advanced flow control feature to keep water consistently hot during ongoing use, so your shower won’t fluctuate in temperature or go cold.
Plus, its digital display lets you see the accumulated cost savings, so you can see how much money you’ve saved by installing a tankless water heater. The 36 Plus model has a flow rate of seven and a half gallons per minute in warmer climates, which is plenty for most homes.
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On the fence about upgrading to a gas-powered tankless water heater? Consider this: You’ll likely never run out of hot water with the Rinnai Natural Gas Tankless Water Heater, which has a capacity of almost 10 gallons per minute. That translates to six running water fixtures at once, which is enough hot water for even the busiest homes. Plus, it’s the size of a small suitcase, so it can fit almost anywhere. It also comes with smart options if you purchase the separate Rinnai module for Wi-Fi connectivity.
“Produces an endless supply (>9 gallons per minute) of hot water at a constant 120 Fahrenheit. So far (90 days) no issues. The old tank water heater struggled to fill a jacuzzi tub. This does so with ease and very quickly due to the high flow rate,” says verified reviewer Dickie Coon.
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