Water Heater Types & Descriptions
Gas Water. Heaters
Gas water heaters heat water using natural gas or propane. They typically heat water faster and have higher recovery rates than electric models, meaning they can supply hot water more quickly for larger households or higher demand.
Gas water heaters often have lower operating costs depending on fuel prices and can continue to operate during power outages (if they do not rely on electric ignition or controls). Proper venting is required for safe operation.
Electric Water Heaters
Electric water heaters use electric heating elements to warm and store water in a tank. They provide reliable hot water and are generally easier to install because they do not require gas lines or venting.
Electric models are commonly available in tank sizes ranging from 40–50+ gallons, as well as tankless versions. They typically last 10–15 years. While efficient at converting electricity into heat, operating costs can be higher than gas depending on local utility rates and electrical capacity requirements.
Ductless Gas Tankless Water Heater
Ductless gas tankless water heaters heat water on demand by warming water instantly as it passes through a heat exchanger. Because there is no storage tank, these systems provide continuous hot water while reducing standby energy losses.
Tankless gas units are space-saving and are often installed on walls or outdoors. They are ideal for households with high hot water demand. Typical installation costs range from approximately $1,600 to $3,800 depending on system size and installation requirements.
Ductless Electric Tankless Water Heater
Ductless (tankless) electric water heaters provide hot water on demand by heating water instantly rather than storing it. These units save space and are commonly used in small homes, apartments, or point-of-use applications such as under sinks.
Electric tankless systems are highly efficient (up to approximately 98%), but they require significant electrical capacity and may have limited flow rates if multiple fixtures are used at once. Typical costs range from approximately $400 to $3,800 depending on size and installation.
HeatPump Water Heater (HPWH)
A heat pump water heater (HPWH), also called a hybrid water heater, is a highly energy-efficient system that heats water by transferring heat from the surrounding air instead of generating heat directly. It operates similarly to a refrigerator in reverse, using refrigerant coils and a compressor.
Heat pump water heaters are typically 2–3 times more efficient than standard electric water heaters and can significantly reduce energy use. Most units include backup electric heating elements for periods of high demand. They operate quietly, can help dehumidify surrounding spaces, and perform best when installed in areas with adequate air volume, such as garages or basements.