With a variety of water heaters available to you, choosing the best one for your needs can be tricky. Every home is different, so when choosing a heater, you’ll want to pay close attention to your household size, water usage, fuel type, upfront costs, and potential long-term energy savings.

Types of Water Heaters

There are three main types of water heaters to consider:

Storage Water Heaters

Storage water heaters are the most popular choice for US households. These heaters store hot water in a tank, typically between 20 and 80 gallons. When a faucet is turned on, hot water is drawn from the top of the heater, and cold water enters from the bottom, ensuring a steady supply of ready-to-use hot water. Storage heaters can run on natural gas, propane, oil, or electricity.

Tankless Water Heaters

Also known as on-demand water heaters, tankless models heat water only when needed. Cold water flows through a heat exchanger, which rapidly heats the water using either gas or electricity. This avoids standby heat losses, providing a continuous flow of hot water without waiting for a tank to refill. 

According to the U.S. Department of Energy, tankless heaters are 24–34% more efficient than conventional storage models in homes that use under 41 gallons per day. Though they may cost more upfront, tankless heaters last longer and typically lower energy bills over time.

Heat Pump Water Heaters

Heat pump water heaters work by transferring heat from the surrounding air into the water tank, operating similarly to a refrigerator, except in reverse. These units are highly energy-efficient and can help lower electricity costs, though they work best in warm climates and require more space.

Choosing Based on Fuel Type

Different fuel sources work with various water heater types, so it’s essential to choose one compatible with your home’s needs:

• Electricity: Electric tankless heaters are compact and efficient but may require an electrical upgrade.
• Oil: Oil-fueled storage water heaters are less common but available in select areas.
• Geothermal Energy: For homes with geothermal heating, geothermal water heaters offer a highly efficient option.
• Natural Gas and Propane: These fuels power both storage and tankless water heaters, as well as some tankless coil and indirect models.\

Recommendations by Household Size

Single-Person Homes

For a one-person household, tankless water heaters are the most cost-effective option. By avoiding standby energy costs, they help offset the higher initial expense over time.

Couples

For two-person homes, tankless models remain an excellent choice, as they can be adjusted to match specific hot water demands. In larger households, however, tankless systems may struggle to keep up with multiple high-demand uses, requiring additional heating solutions.

Family Homes

For larger families with higher simultaneous hot water needs, storage water heaters are ideal, providing consistent access to hot water. Alternatively, dual tankless systems are also an option, offering energy savings without sacrificing convenience.

Need Expert Assistance?

For guidance in choosing the best water heater, contact Orange County Plumbing Heating & Air Conditioning at (714) 400-2913. Our team is here to help you find the right water heating solution for your home!