The best water heaters will have a long warranty and will be energy efficient to run. The biggest names include Rheem water heaters, A.O Smith heaters and more, and in this guide we cover water heater costs and how to choose the best model for you.
The models in this guide all have a tank, but if you need an alternative, check out the best tankless water heaters.
First up, how many people live in your home, and do you need a hot water heater that can provide a lot of hot water, fast? If you need a lot of hot water, opt for at least a 50-gallon water heater, although some models, including the Westinghouse Lifetime Electric Water Heater, have an 80 gallon tank.
How much do water heaters cost? Typically, electric water heaters cost less to purchase than gas heaters initially, but they often cost more to run than a gas water heater. And it’s not just the up-front cost you should consider, either. Water heaters can cost hundreds to well over $1,000, but you will need to account for installation costs too.
Since hot water heaters can be a pretty big expense, look out for models that are energy efficient and are Energy Star rated. Energy efficient hot water heaters will cost more initially but will cost less over the years. Likewise, if you can choose a water heater without anode rods, the part inside the tank that corrodes, you’ll have a water heater that lasts longer.
What else is important when choosing a water heater? To make sure you’re investing your money into the right water heater, have a look at the warranty each company is offering. The models in our guide range from six-year warranties, right up to lifetime warranties for increased peace of mind.
Finally, some water heaters have smart features so that you can control them from your phone. If that’s important to you, check out the Rheem Gladiator Water Heater.
To find the best water heater for you, check out the options and water heater reviews below, or for other household essentials, check out our guides to the best central air conditioners and the best gas furnaces.
1. Rheem Gladiator Water Heater: Best overall water heater
Rheem is a good, mid-level water heater brand that's not too expensive. Its reputation for manufacturing durable, reliable water heaters makes it a good choice for most homes. The company sells water heater models in gas, electric, tankless, solar and hybrid styles.
We looked at the Rheem Gladiator Water Heater as a reference point for our guide. This gas water heater is Energy Star rated and has a 12-year warranty. You can control or monitor it using the included EcoNet Wi-Fi Kit and smartphone app.
This EcoNet system can even send you alerts if there is a leak or other complications. To protect you, the device automatically turns off if potentially flammable vapor builds up. You won’t have to worry about cleaning a filter either, as this unit is made to operate without one.
- Read our Rheem Gladiator 50-Gallon review
2. Westinghouse Lifetime Electric Water Heater: Best water heater warranty
The Westinghouse Electric Light Duty Water Heater boasts a huge 80-gallon tank, making it ideal for families and those that need a lot of hot water fast.
Other noteworthy features with this water heater are the tank’s stainless steel design making it much more lightweight. The stainless steel also minimizes the build up of scale inside, meaning it should last a lot longer.
Whilst this water heater does come with a hefty price tag at over $1,000, it does also have a lifetime warranty. The adjustable thermostat allows you to easily control the temperature of the water in the tank, making sure it’s just right for you and your needs.
3. Rheem Performance Platinum Smart Electric Water Heater: Best electric water heater
The Rheem Performance Platinum Smart Electric Water Heater comes out on top as the best electric heater in our guide.
Complete with a 10-year warranty, this water heater is quiet and efficient. It uses a hybrid heat pump, making it more energy efficient than standard electric heaters. Being a smart water heater, the Rheem Performance heater sends notifications to your phone if anything isn’t quite right or any water leakages are detected.
Ideal for home of up to five occupants, this water heater can handle four back to back showers and water usage from three bathrooms.
Other handy smart features include this water heater’s ability to put it into High Demand mode for plenty of hot water, and also it has a Vacation Mode for when you go away.
After downloading the compatible app, this water heater can send you service notifications so that you can make your tank last as long as possible.
4. A.O Smith Signature Gas Water Heater: Best gas water heater
The A.O Smith Signature Gas Water Heater is the cheapest in our guide for large water heaters, but that doesn’t mean you’ll miss out.
Sure, it doesn’t come with smart features like some of the other models do, but for what it costs this water heater is great for heating enough water for a family. What features it does have have been thought out well.
A push button ignition makes the startup process nice and easy and the LED status indicator helps you keep tabs if anything should go wrong.
A well-trusted brand, A.O Smith offers a good and reliable water heater without the enormous price tag.
5. Bosch Tronic 3000 T ES4 Water Heater: Best point-of-use water heater
The Bosch Tronic 3000 T ES4 Water Heater can be mounted on a wall or the floor and is great for under sinks. It plugs into a 120V outlet and has a six-year warranty.
This water heater certainly won’t provide enough hot water for a whole family showering after each other and it might only have a four-gallon tank, but it is designed to easily heat water in one area. Its short recovery time means you won’t have to wait long for hot water.
Its tank is glass-lined, which makes it great for insulation and has a 98% thermal efficiency. For a water heater that can be used with one point-of-use, the Bosch model is a great choice. It’s fine to use when one person has a shower for around 10 minutes, or it can be used with a small washing machine.
Buying a water heater: efficiency ratings
Efficiency standards for gas and electric water heaters are different, but both use the Uniform Energy Factor (UEF) ratings system, where higher scoring units produce more hot water while using less energy. To earn an Energy Star certification, for example, electric water heaters with tanks up to 55 gallons must have a UEF greater than 2. In contrast, gas water heaters with tanks up to 55 gallons only need a UEF above 0.64 or 0.68, depending on how they use water during the day. Qualifications for tanks over 55 gallons are even higher. Choosing a water heater near or above the Energy Star standards will save money on your utilities, though the most efficient units usually command the highest prices.
Water heater warranties
The typical water heater is estimated to last eight to 12 years. Many factors can affect this, including the build quality, maintenance issues and the hardness of the water in your area. Since your water heater can be a substantial investment for your home, choose one with a long warranty. The best water heater warranties cover the unit for nine to 12 years. Labor warranties usually last one year, though your plumber might offer an extended warranty.
How much do water heaters cost?
On average, you can expect to spend between $700 and $2,000 to get a new water heater installed in your home. Without installation, electric water heaters usually cost between $300 and $700. Similarly, gas water heaters cost between $400 and $1,000. However, a heater’s cost depends largely on the water heater brand, tank size and its efficiency rating.
Although it's tempting to open the installation manual and install your new water heater on your own, most homeowners don't have the necessary skills and experience. By choosing a professional installer, you get someone who knows exactly what to do and how to do it correctly and safely. Furthermore, some brands only sell their water heaters through installers. Installers also often have water heater suggestions for your home.
Most plumbers are trained and licensed and have valuable experience, so it's worth the extra cost to have them install your water heater. To find the best plumber in your area, take some time to look at their online customer reviews on Yelp, HomeAdvisor, Angie's List and similar websites.
Installation costs typically include labor, supplies and water heater removal. You can expect to pay between $300 and $500 to have an installer swap out your old water heater for a newer model, though this may increase or decrease based on where you live. However, if you’re changing the type of water heater in your home, you can expect to pay up to $1,500, sometimes more, to upgrade your home’s electrical or natural gas connections appropriately. Make sure to get quotes from three or four local plumbers in order to find the best price.
Permits & inspections
Most cities and counties require you apply for a permit before you install a water heater in your home. Depending on where you live, the licensed plumber you hire can obtain the necessary permits as part of the installation. However, it’s a good idea to double-check with them or your local building department to learn exact permit requirements for your location. This will also help you find out if you need to get the permit yourself or if the contractor does it. When the installation is complete, someone from the organization that issued the permit will inspect the water heater to verify it complies with the building code.
Gas vs electric water heaters
Water heaters fueled by natural gas usually cost less to operate on a monthly basis than electric models. As a bonus, they still work when the power goes out. Electric water heaters heat water more efficiently than gas models but often have higher energy costs, since electricity generally costs more than natural gas. If your home already has a gas water heater, there's no need to switch to electric.
Lifetime energy costs
You can estimate your new electric or gas water heater's annual and lifetime energy costs with this calculator from the Federal Energy Management Program (FEMP). It also compares your estimates with those of base models, FEMP recommendations and the most efficient models in the industry. This calculator can help you decide if a more efficient model is worth the extra cost over its lifetime.
How many years does a hot water heater last?
When you're spending so much at once for a hot water heater, the question of longevity is a concern. Fortunately, tank style water heaters generally last eight to 12 years on average – depending on if you have hard water in your area and perform regular maintenance to keep the heater running at peak efficiency. We found through our research and discussions with plumbing professionals that you can expect a new water heater to last for about 10 years. Setting aside a little money every year to help offset the cost for when you do have to replace it can help reduce the stress of forking over a chunk of change you weren't expecting to spend.
We also found that many plumbing experts advise installing a hot water filter to help reduce the amount of sediment and minerals that get into your water heater. This extra system could help double the lifespan of your water heater, but we recommend consulting with your local plumber first to find out if it would be worth it in your area.
When should you replace your water heater?
You don’t need to be a plumber to figure out that your water heater isn’t working properly, but it helps to know the symptoms associated with a broken water heater before you lose hot water entirely.
- Look out for any changes in hot water quality, such as brown water or metallic tastes, which may indicate your storage tank is rusting on the inside.
- If you experience a sudden decrease in the amount of hot water your heater delivers, or the water never gets completely hot, this could be the result of a bad or old heating element.
- A decrease in the volume of water coming through the faucets could indicate a pipe is blocked with sediment, hard water deposits or another object.
- If your water heater starts to sound different when heating water, especially if you hear popping and cracking, that could be a problem.
- Any time you see water leaking directly from the water heater, something needs to be tightened.
- As mentioned earlier in our guide, the average lifespan of a water heater is about 10 years, so anything older than 10 to 15 years is a good candidate for replacement, even if it’s still working fine.
Water heater safety
Your water heater may be out of sight, out of mind, but this integral part of your household does need regular maintenance and care. Nationwide insurance recommends homeowners inspect certain components of their water heaters at least yearly, such as ventilation, pilot light and the temperature or release valve.
You should follow the instructions contained in the manufacturer’s user manual to see exactly how to check each of these components. As always, if you are unsure of the condition of your water heater or need assistance, call your local plumber to get a professional inspection and guidance.