Selecting a New Water Heater | Department of Energy

05, Jun. 2025

 

Selecting a New Water Heater | Department of Energy

It's a good idea to know the different types of water heaters available before you purchase one:

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  • Conventional storage water heaters offer a ready reservoir (storage tank) of hot water which is adequate for everyday use. However, there are some instances, such as when more than one use for hot water is occurring or when there are guests in the home, increasing the requirements for hot water.
  • Tankless or demand-type water heaters heat water directly without the use of a storage tank. This type of water heater is designed to provide an adequate supply of hot water without running out when adequately sized.
  • Heat pump water heaters move heat from one place to another instead of generating heat directly for providing hot water, resulting in high efficiencies and significant cost savings.
  • Solar water heaters use the sun's heat to provide hot water and also save money on energy bills.
  • Tankless coil and indirect water heaters use a home's space heating system to heat water.

Selection Criteria

When selecting a replacement water heater for your home, consider the following:

  • Fuel type, availability and cost. The fuel type or energy source you use for water heating will not only affect the water heater's annual operation costs but also its size and energy efficiency. See below for more on selecting fuel types.
  • Size. To provide your household with adequate hot water and maximize efficiency, you need a properly sized water heater. Visit the pages on different types of water heaters (linked above) for more on sizing.
  • Energy efficiency. To maximize energy and cost savings, check the energy efficiency of a water heater before you purchase it. Visit the pages on different types of water heaters (linked above) for more on estimating energy efficiency.
  • Costs. Before you purchase a water heater, it's also a good idea to estimate the annual operating costs and compare those costs with other less or more energy-efficient models. Visit the pages on different types of water heaters (linked above) for more on estimating costs.

Also be sure to examine ways to reduce your hot water use, such as washing clothes in cold water. You may also want to explore other options such as drain-water heat recovery to save money on your water heating bill.

Fuel Types, Availability and Costs for Water Heating

When selecting a new water heater, it's important to consider what fuel type or energy source you will use, including its availability and cost. The fuel used by a water heating system will not only affect annual operation costs but also the water heater's size and energy efficiency.

Exploring Water Heater Options by Fuel Type

Fuel type and its availability in your area may narrow your water heater choices. The following is a list of water heater options by fuel or energy source:

  • Electricity
    Widely available in the United States for conventional storage, tankless or demand-type, and heat pump water heaters. It also can be used with combination water and space heating systems, which include tankless coil and indirect water heaters.
  • Fuel oil
    Available in some areas of the United States to fuel conventional storage water heaters, and indirect combination water and space heating systems.
  • Geothermal energy
    Available throughout the United States to those who will have or already have a geothermal heat pump system installed in their homes for space heating and cooling. See Heat Pump Water Heaters for more information.
  • Natural gas
    Available in many areas of the United States to fuel conventional storage and demand (tankless or instantaneous) water heaters, as well as combination water and space heating systems, which include tankless coil and indirect water heaters.
  • Propane
    Available in many areas of the United States to fuel conventional storage and demand (tankless or instantaneous) water heaters, as well as indirect combination water and space heating systems.
  • Solar energy
    Available throughout the United States -- most abundantly in the Southwest -- for solar water heaters.

Comparing Fuel Costs and Water Heater Types

If you have more than one fuel type available in your area, it's a good idea to compare fuel costs, especially if you're building a new home. Even if you're replacing a water heater, you may find that you'll save more money in the long run if you use a different fuel or energy source.

However, if you are converting from one fuel type to another, there are other cost considerations, such as adding a breaker or running a gas line to the water heater and venting it outside. Contact your utility for current fuel costs or rates.

The type of water heater you choose will also affect your water heating costs. One type of water heater may use a fuel type more efficiently than another type of water heater. For example, an electric heat pump water heater typically is more energy efficient than an electric conventional storage water heater.

Also, an electric heat pump water heater might have lower energy costs than a gas-fired conventional storage water heater, even though local natural gas costs might be lower than the electricity rates.

The comprehensive guide to picking a tankless water heater

Plumbing That Lasts

Choosing the right size tankless water heater for your home is a crucial decision. It not only affects your comfort but also your energy efficiency and utility bills. At Black Lake Plumbing, we believe in providing plumbing that lasts, and that starts with helping you make informed decisions. So, let’s dive into everything you need to know about tankless water heater sizing.

Understanding Tankless Water Heaters

Tankless water heaters, as the name suggests, do not store hot water for later use. Instead, they heat water on demand, providing you with a continuous supply of hot water. This on-demand approach is what makes tankless water heaters more energy-efficient and eco-friendly than traditional tank water heaters. But remember, even the best tankless water heater can only be as good as its fit for your home.

Factors to Consider When Choosing a Tankless Water Heater

Choosing the right size tankless water heater involves considering several factors:

  • Size of your home: Larger homes with more bathrooms will require a larger water heater.
  • Climate in your area: If you live in a colder climate, your water heater will need to work harder to heat the water to the desired temperature.
  • Groundwater temperature: The colder your incoming water, the larger the water heater you’ll need.
  • Number of appliances running at once: If you frequently run the dishwasher while taking a shower, you’ll need a water heater that can handle this demand.
  • Number of people in the home: More people mean more hot water demand.

Remember, time is valuable, but so is getting it right the first time. Choosing a water heater that’s too small could leave you with a cold shower, while one that’s too large will cost more than you need to spend.

The company is the world’s best instant hot water heaters for showers supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.

Understanding the Specifications of Tankless Water Heaters

When shopping for a tankless water heater, you’ll come across a lot of specifications. The most important ones are the maximum GPM Flow Rate and the temperature rise at that flow rate. Make sure the water heater you choose can handle your calculated flow rate at your required temperature rise.

How to Calculate the Size of a Tankless Water Heater You Need

To find the right size tankless water heater for your home, you’ll need to calculate two key factors: Flow Rate (GPM) and Temperature Rise.

Flow Rate (GPM) is the amount of water your household uses at peak times. For example, if you’re running the dishwasher (3 GPM), washing machine (3 GPM), and shower (2.5 GPM) at the same time, your flow rate is 8.5 GPM.

Temperature Rise is the difference between your incoming water temperature and your desired hot water temperature. If your incoming water is 50°F and you want your water heated to 105°F, your temperature rise is 55°F.

Common Scenarios for Sizing Tankless Water Heaters

Let’s look at some common scenarios to better understand how to size your tankless water heater:

  • Replacing a 50-gallon storage tank: If you’re replacing a 50-gallon storage tank, you’ll want to make sure your new tankless water heater can handle the same demand. For most homes, a tankless water heater with a flow rate of 10 GPM should be sufficient.
  • Family of five: For a family of five, a tankless water heater with a flow rate of 10 GPM should be sufficient. However, if you live in a warmer climate, you might be able to go with a smaller unit.

If you’re unsure about what size tankless water heater you need, don’t hesitate to reach out to a professional for help.

General Guidelines

The size of the tankless water heater you need depends on the size of your household and your hot water usage. Here are some general guidelines:

  • For a family of 2, a 6-8 GPM gas tankless heater or a 10-18 kW electric tankless heater is recommended.
  • For a family of 3, a 7-9 GPM gas tankless heater or a 15-23 kW electric tankless heater is recommended.
  • For a family of 4, an 8-10 GPM gas tankless heater or a 20-28 kW electric tankless heater is recommended.
  • For a family of 5, a 9-11 GPM gas tankless heater or a 25-34 kW electric tankless heater is recommended.
  • For a family of 6 or more, an 11+ GPM gas tankless heater or a 34+ kW electric tankless heater is recommended.

These figures are for reference only and the exact size of the tankless water heater you need may vary depending on factors like inflow water temperature and acute hot water needs.

The Impact of Inlet Water Temperature on Tankless Water Heater Size

The temperature of the incoming water can significantly impact the size of the tankless water heater you need. The colder the incoming water, the harder your water heater has to work to heat it to the desired temperature. For example, if you live in a northern state where the groundwater temperature is 40°F, you’ll need a larger water heater than someone living in a southern state where the groundwater temperature is 70°F.

The Cost of Tankless Water Heaters

The cost of tankless water heaters can vary widely depending on the size and brand. However, while the upfront cost may be higher than traditional tank water heaters, tankless models can save you money in the long run through lower energy bills. Remember, the best because it lasts.

Final Thoughts

Choosing the right size tankless water heater is a crucial step in ensuring comfort and energy efficiency in your home. By understanding your hot water needs and how different factors affect these needs, you can make an informed decision that will serve you well for years to come.

Why Choose Black Lake Plumbing for Your Tankless Water Heater Needs

At Black Lake Plumbing, we’re committed to providing journeyman quality craftsmanship and top-notch customer service. We understand that every home is unique, and we’re here to help you find the best tankless water heater for your specific needs. Our team is knowledgeable, clean, and punctual, and we always put our customers first. So, if you’re considering a tankless water heater, contact us today. We’re here to help.

External Resources

For more information on flow calculations, check out this resource.

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