Which Type of Water Heater is Right for Me?

Last Revised: 11/1/2024 

Is your water heater struggling to keep up with your family’s needs? Or have you noticed your energy bills creeping up, and you’re wondering if it’s time for an upgrade? 

Choosing the right water heater for your home can feel overwhelming, especially since there are more options available than ever before. Plus, you might not even remember the last time you replaced yours.  

Don’t worry. Here at Mattioni, water heaters are a big part of what we do.  

We know that making the right call is about balancing your short-term budget with your home’s hot water needs. Not to mention, you should also consider the long-term utility costs tied to energy efficiency.  

To find the right water heater for your home, consider your goals. Is your top priority saving on long-term energy costs, minimizing your short-term budget, or choosing a system that provides endless hot water?  

In this guide, we’ll break down the three main types of water heaters – standard tank water heaters, tankless water heaters, and hybrid/heat pump water heaters – and explain how factors like tank size, material, efficiency, and fuel type influence your decision. You’ll get an up-close look at how each type of water heater impacts your life. 

While this article covers some basics on how each type of water heater functions, it primarily focuses on how they each uniquely impact your homeownership experience. This article is best used as a guide to align your household’s priorities with each option, and ultimately find the best match for you. 

Let’s start by looking at the most traditional type of water heater, a standard tank type. 

1. Standard Tank Water Heaters: Affordable and Reliable

Standard tank water heaters are the most common and affordable option for homeowners. These units store a fixed amount of hot water, usually between 40 and 80 gallons, and keep it heated at all times. While they are simple to operate and inexpensive to install, they are less energy-efficient compared to other options. Because the tank is constantly heating water, you may see higher utility bills over time due to “standby losses” — the energy consumed just to keep the water hot. 

Key Considerations: 

• Affordability: The least expensive option for upfront costs. 

• Tank Size: Common sizes range from 40-50 gallons, with larger tanks providing more hot water but taking up more space. 

• Tank Material: Steel is most common but prone to rust over time. Plastic tanks are corrosion-resistant but more expensive. 

• Fuel Type: Available in gas and electric models. Gas models typically offer lower operating costs, but electric models are easier to install. 

• Energy Efficiency (UEF): Standard tanks have lower UEF ratings (0.60–0.70), which means higher energy consumption. 

Bradford White has some of the leading standard tank water heaters, with a range of options to best suit your home’s specific needs. 

The Rheem Marathon is another great option that’s built with a plastic tank and comes with a lifetime warranty – it’s one of the best available tank water heaters out there. But don’t just take our word for it; here’s what others are saying about it. 

2. Tankless Water Heaters: Energy-Efficient, Endless Hot Water

If you’re tired of running out of hot water, tankless water heaters might be the solution. Instead of storing hot water in a tank, tankless systems heat water on demand as it flows through the unit. This means you never run out of hot water – which is a huge advantage. The only instance in which you may run into limited hot water is if you have multiple showers, your dishwasher and washing machine all going at the same time, but we’ve rarely seen this happen. If you’re worried about this, talk to your plumbing professional about installing tankless water heaters in parallel, which completely solves this problem. 

Key Considerations: 

• Endless Hot Water: Provides hot water on demand, without running out. Only runs into gaps in hot water in extreme simultaneous usage situations.

• Space-Saving: Much smaller than traditional tanks, making them ideal for homes with limited space. 

• Flow Rate: Measured in gallons per minute (GPM); a higher GPM is needed for homes with multiple simultaneous hot water uses. 

• Fuel Type: Requires gas (natural gas or propane). Electric models are available but are less efficient and require lots of power. 

• Energy Efficiency (UEF): High UEF ratings (0.85–0.97), meaning less energy waste and lower long-term utility bills. 

• Upfront Costs: Higher initial installation cost, but long-term energy savings can make it worthwhile. 

Navien, one of the top tankless water heater manufacturers, has several options that are worth evaluating. They include high-efficiency (condensing) units designed to keep your utility bills low, and more affordable (non-condensing) systems that keep installation costs down. 

3. Hybrid (Heat Pump) Water Heaters: Long-Term Energy Savings

For homeowners who want the best of both worlds—energy efficiency and sufficient hot water capacity—hybrid or heat pump water heaters are an excellent option. These systems use electricity to pull heat from the air around them, transferring that heat into the water stored in the tank. This process makes hybrid systems up to three times more energy-efficient than standard water heaters, making them ideal for eco-conscious homeowners or anyone looking to significantly reduce utility bills over time. 

Key Considerations: 

• Energy Efficiency: Uses electricity and ambient air, making it one of the most energy-efficient options (UEF 3.0–3.75). 

• Tank Size: Typically 50-gallon models, 80-gallon models are ideal for larger households. 

• Tank Material: Most use steel, but plastic tanks offer better corrosion resistance. 

• Fuel Type: Powered by electricity, with low usage levels due to high energy-efficiency. 

• Space Requirements: Requires adequate space and airflow, making them suitable for basements or large utility rooms. 

• Rebates and Incentives: Often eligible for rebates and tax incentives due to their energy efficiency. 

The Rheem Proterra Hybrid Electric Water Heater represents the most energy efficient water heater available today, meaning consistent savings on utility bills for you. To learn more about this option and what it offers, feel free to speak with your local HVAC professional. 

Additional Considerations for Choosing the Right Water Heater 

Beyond the type of water heater, several other factors can influence which system is best for your home: 

Finding the Right Tank Size:   

For standard and hybrid systems, choose a tank size that fits your household’s water usage. Depending on hot water demands, a family of four may be well-served by a 50-gallon tank, or may need an 80-gallon tank. Smaller households may get by with a 30-40 gallon tank.   

Choosing a Tank Material:   

Steel tanks are affordable but prone to rust and corrosion. Plastic tanks are more expensive but longer-lasting and corrosion-resistant. If longevity is important to you, investing in a plastic tank (like the Rheem Marathon model) might be worth the extra cost. In fact, Rheem stands behind the quality of their Marathon water heater with a lifetime warranty. 

How Flow Rate (Tankless Water Heaters) Affects Your Hot Water:   

Tankless systems need to be sized correctly for your hot water usage. If your home often uses hot water from multiple sources at once (like showers and dishwashers), opt for a higher GPM or consider installing two units. 

Plan Ahead by Selecting the Right Fuel Type for You:   

Consider the availability and cost of natural gas, propane, and electricity in your area when choosing a fuel type. Natural gas tends to be more cost-effective in the long run, while electricity can be expensive but may be offset by energy-efficient models like hybrids. 

System Add-Ons that Enhance Your Water Heater 

To get the most out of your water heater, there are several additional features and accessories worth considering: 

Thermal Expansion Tanks:   

These are often required with most water heaters. Expansion tanks absorb excess pressure when water heats up, preventing potential damage to your unit. It’s a small (often necessary) investment that can extend the life of your system. 

Water Heater Pans & Leak Breaker Valves:   

Installing a pan under your water heater and a leak breaker valve can protect your home from water damage. The valve shuts off the cold water supply if it detects a leak, saving you from costly flooding repairs. 

Hot Water Recirculation Systems:   

If you’re tired of waiting for hot water to reach your faucet, a recirculation system ensures it’s delivered more quickly, saving water and improving convenience. 

Next Steps: Finding the Right Water Heater for Your Home 

Choosing the right water heater is about more than just the upfront cost. Consider your household’s hot water demands, your energy efficiency goals, and the space you have available.  

Each type of water heater – whether standard, tankless, or hybrid – offers unique advantages depending on your needs. 

If you’re looking for a reliable, budget-friendly option, a standard tank may be the right choice. For endless hot water and energy efficiency, tankless systems are hard to beat. And if you want to maximize long-term savings while reducing your energy use, hybrid water heaters offer the best of both worlds. 

No matter what type of water heater you opt for, prioritizing its maintenance is essential to support system efficiency and prevent damage that can result in leaks. If you haven’t already, check out a VIP Maintenance Membership that can keep your water heater running as long as possible. 

Still unsure which water heater is right for your home? Contact the experts at Mattioni Plumbing at (610) 400-8510 for personalized advice and professional installation. We’ll help you find the perfect system to meet your hot water needs and keep your home running smoothly for years to come. Book a consultation today.