The 9 Best Water Heaters for Performance and Energy Efficiency

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Find out which features you’ll want to look for in a new water heater and don’t miss our list of some of the best units you can buy.

It used to be that there weren’t many options when it came to purchasing a residential water heater. The only two choices were gas or electric. With the advent of new technologies, the hot water heater landscape has changed dramatically and for the better. There are more options now than ever before. In addition to gas and electric tank water heaters, today’s mainstream options also include tankless and hybrid water heaters.

All these options might make you feel like you’re in ‘deep water’ when it comes to choosing the best water heater. Having installed several hot water heaters in my own homes over the years, and being a professinal DIY home improvement writer, I’m quite familiar with the process of choosing and installing the right model. For this article, I also researched 20 different water heaters on the market today, of varying types and features, to find the very best water heaters with the standout specs and approving customer reviews.

1. BEST OVERALL: A.O. Smith Signature 50-Gallon Natural Gas Heater
2. BEST BANG FOR THE BUCK: Rheem Performance Platinum 50-Gallon Water Heater
3. BEST TANKLESS ELECTRIC: Stiebel Eltron Tankless Electric Water Heater
4. BEST TANKLESS GAS: Rinnai High-Efficiency Natural Gas Water Heater
5. BEST ENERGY-EFFICIENT: Rheem Performance Platinum Hybrid Electric Heater
6. BEST FOR LARGE FAMILY: A.O. Smith Signature Premier Electric Water Heater
7. BEST FOR HARD WATER: EcoSmart ECO 11 Electric Tankless Water Heater
8. BEST MINI: Bosch Electric Mini-Tank Water Heater
9. BEST PORTABLE: Hike Crew Portable Propane Water Heater & Shower Pump

How We Chose the Best Water Heaters 

The right water heater can make bubble baths, showers, and common kitchen and bathroom tasks easier and more frequent without using ample energy. Selections for the best water heaters depended upon the water capacity, power output, ease of installation, type, and added special features included by some brands.

The products featured in our list include storage tank, tankless, and hybrid options. Each type includes small or large hot water tanks, averaging at 40 to 50 gallons for households of three to five people. As for power output, most of these residential water heaters are energy efficient by offering a Uniform Energy Factor (UEF) of under 0.70. (For a more detailed discussion of UEF, read the section Efficiency Rating below our product reviews). Though water saving, all of these units have powerful British thermal units (BTUs) or wattages to heat ample amounts of water quickly. The storage tank options average at 40,000 BTUs, while the tankless and hybrid options run at 4,500 watts.

As for durability, self-cleaning and diffuser systems remove sediment buildup and tank liners to reduce the likelihood of leaks. Since water heaters typically come in large sizes, installation of some of these models may require professional help. But, some of the smaller units that are lightweight and compact may be easy to install without help.

Our Top Picks for the Best Water Heaters

Read on to review these recommendations for hot water heaters in several categories. This list includes some of the most efficient and technologically advanced units from reputable water heater manufacturers.

Best Overall

A.O. Smith Signature 50-Gallon Natural Gas Heater

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The A.O. Smith Signature heater features a 50-gallon tank heated by a powerful 40,000 BTU burner, enabling it to deliver up to 81 gallons of hot water in the first hour. This makes the water heater powerful enough to serve a household of three or four, and it’s also energy efficient.

Features include an electronic gas valve for precise thermostat control, an LED indicator that provides system information, and an integrated safety system that prevents accidental fires.

Product Specs

• Type: Storage tank
• Water capacity: 50 gallons
• BTUs/power output: 40,000 BTUs

Pros

• Large water tank and gallons per minute (GPM); suitable for homes with 3 or 4 people
• Provides 81 gallons of water in the first hour; can be used right away
• 0.62 UEF saves hundreds of dollars on energy costs
• High-altitude certified for southern and western households on high footing

Cons

• Not Energy Star certified; may not be as energy efficient as comparable models

Get the A.O. Smith 50-gallon natural gas water heater at Lowe’s.

Best Bang For The Buck

Rheem Performance Platinum 50-Gallon Water Heater

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From a respected water heater brand comes the Rheem Performance Platinum 50-gallon water heater. This tank water heater offers excellent all-around performance and efficiency. Its 50-gallon capacity provides plenty of water for a family of five without breaking the bank.

With its powerful 40,000 BTU gas burner, the Performance Platinum can deliver a staggering 77 gallons of hot water in the first hour. Despite this high output, it’s rated to set owners back less than $300 a year, on average, in energy costs.

Product Specs

• Type: Storage tank
• Water capacity: 50 gallons
• BTUs/power output: 40,000 BTUs

Pros

• 0.64 UEF; can save hundreds of dollars per year on energy costs
• Provides 77 gallons of water in the first hour; great for most households
• Push-button ignition system is convenient and easy to use
• Suitable for large homes of up to 8,500 square feet

Cons

• Plastic drain valve is less durable compared to metal options

Get the Rheem 50-gallon water heater at The Home Depot.

Best Tankless Electric

Stiebel Eltron Tankless Electric Water Heater

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Selected as the best of the electric tankless water heaters, users can say “never again” to cold showers with the Stiebel Eltron tankless electric water heater. In addition to supplying a steady flow of hot water, the Stiebel Eltron model includes several features that make it rank among the top tankless water heaters. When hot water demand begins to exceed capacity, the Stiebel Eltron automatically makes slight reductions to flow to ensure the warm water keeps on coming.

This unit will provide up to 4.68 GPM and can save homeowners money. The Tempra uses about 15 to 20 percent less energy than standard tank water heaters. Other attractive features include easy-to-use digital controls for output and water temperature. The unit is small, weighing in at just over 15 pounds, and takes up very little space with its 20-inch-long by 20-inch-wide profile.

Product Specs

• Type: Electric tankless
• Water capacity: Up to 4.68 GPM, depending on temperature
• BTUs/power output: 18,000 watts

Pros

• Self-adjusting water flow for excellent efficiency and savings on energy costs
• Requires less energy than similar options; saves both water and electricity
• Built-in digital control panel is easy to adjust and monitor while in use
• Lightweight and compact design; easy to install in tight spaces

Cons

• No installation kit or tools included; buyers may need professional help with installation

Get the Stiebel Eltron water heater at Amazon or The Home Depot.

Best Tankless Gas

Rinnai High Efficiency Natural Gas Tankless Water Hea

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Combine tankless water heater efficiency with gas power to slash energy use by up to 40 percent with the Rinnai high-efficiency tankless gas water heater. This high-efficiency unit pumps out up to 6.5 GPM of hot water with a powerful 150,000 BTUs.

Rinnai also minimizes the number of pipes needed for venting the gas burner with a concentric venting system, which allows intake and exhaust to run through the same vent. Another included feature is a temperature lock to prevent accidental thermostat changes. At a little over 1 foot wide and 2 feet tall, this tankless water heater doesn’t take up much room, making it ideal for smaller spaces.

Product Specs 

• Type: Tankless
• Water capacity: 6.5 GPM
• BTUs/power output: 150,000 BTUs

Pros

• Concentric venting system; allows the intake and exhaust to run through the same vent
• Temperature lock prevents any unwanted changes to the heat of the water
• Compact, lightweight construction can be installed in small utility rooms or basements

Cons

• High UEF of 0.82; may cost more to run than comparable models
• Not suitable for large households; tank size is suitable for 1 or 2 people

Get the Rinnai water heater at The Home Depot or Build With Ferguson. 

Best Energy-Efficient

Rheem Performance Platinum Hybrid Electric Heater

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Take energy efficiency to the next level with the Rheem Performance Platinum 50-gallon hybrid electric water heater. This Energy Star-certified unit will save nearly $500 per year in energy costs compared to standard tank electric hot water heaters. Couple that with a 10-year warranty, and this unit offers exceptional savings.

Although the up-front cost is high, this Rheem water heater will earn back that difference in just a couple of years. This hybrid produces enough water to serve households of up to five people. It’s also a smart water heater, so owners can track usage and manage the water heater’s operation via a smartphone. The Rheem hybrid water heater has an integrated self-cleaning function that reduces sediment, extending the life of the water heater.

Product Specs

• Type: Hybrid
• Water capacity: 50 gallons
• BTUs/power output: 4,500 watts

Pros

• Large tank size; suitable for homes with up to 5 people
• Smartphone monitoring included; can be checked and adjusted from anywhere
• Self-cleaning function deters any sediment buildup for optimal longevity
• Energy-efficient model; can help save monthly consumption and costs

Cons

• Heavyweight design; may be difficult to install for first timers

Get the Rheem hybrid water heater atThe Home Depot.

Best For Large Family

A.O. Smith Signature Premier Electric Water Heater

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Bigger families need a reliable water heater for busy mornings. That’s why we recommend the A.O. Smith Signature Premier electric water heater. With its 50-gallon tank, this model is highly efficient and can help users save hundreds of dollars in energy costs every year.

Its innovative design absorbs any heat from the surrounding air and transfers it inside the water heater’s storage tank. As a result, it dehumidifies and cools ambient air in the process. Made with 4,500-watt copper water-heating elements, a protective anode rod, and a ceramic-fused tank shield, this model is easy to use with an electric interface for adjusting temperature, operating modes, and viewing diagnostics. All in all, this model is durable enough to provide a hot shower for every family member during the morning rush.

Product Specs 

• Type: Electric
• Water capacity: 50 gallons
• BTUs/power output: 4,500 watts

Pros

• Very energy efficient; can save hundreds of dollars per year in energy costs
• Absorbs any heat from the surrounding air and transfers it inside the water heater; dehumidifies ambient air
• 4,500-watt copper heating elements, protective anode rod, and a ceramic-fused tank shield
• Electric interface is built-in for changing temperatures, operating modes, and viewing diagnostics

Cons

• Default settings must be altered when first installed; runs as a hybrid unless changed

Get the A.O. Smith electric water heater at Lowe’s.

Best for Hard Water

EcoSmart ECO 11 Electric Tankless Water Heater