That Plumber Blog

Your Guide to the Different Types of Water Heaters

Written by thatplumber | Jun 24, 2026 1:30:00 PM

From showers and laundry to dishwashing and other cleaning needs, hot water is something most homeowners rely on every day. When it's time to replace your water heater, keep in mind that there are different types of water heaters, each with their own advantages and drawbacks. 

Check out these water heater differences to help you make the best decision for your home's needs and budget.

Traditional Tank Water Heaters

Traditional tank water heaters are the most common type found in today’s homes. When hot water is used, the tank refills and reheats the incoming water, typically ranging from 40 to 80 gallons.  

Pros 

  • Lower upfront installation cost

  • Proven and reliable technology

  • Easy replacement  

  • Available in gas and electric models 

Cons 

  • Limited hot water supply

  • Standby heat causes higher energy costs 

  • Requires more space 

  • Typically has a shorter lifespan than tankless models 


Tankless Water Heaters

Tankless water heaters, also known as on-demand water heaters, heat water only when needed. These heaters use powerful burners or electric heating elements to rapidly heat passing water. 

Pros 

  • Endless hot water supply

  • Greater energy efficiency

  • Compact, space-saving design

  • Longer average lifespan 

Cons

  • Higher initial investment

  • May require upgrades to your plumbing or gas line 

  • Depending on the size of your home, multiple units may be needed 

  • Require annual maintenance

 


Hybrid Heat Pump Water Heaters 

Hybrid water heaters combine the traditional tank storage setup with a heat pump. These heaters pull heat in from the surrounding air and transfer it to the water in the tank. 

Pros 

  • Extremely energy efficient

  • Lower monthly cost for utilities

  • Eligible for rebates and incentives (check with store)

  • Environmentally friendly

Cons

  • More expensive to buy

  • Requires larger installation space

  • Performance can be affected by colder environments 

Gas vs. Electric Water Heaters 

When selecting a water heater, fuel type is another important factor to consider. 

Gas Water Heaters 

Pros

  • Faster recovery times

  • Lower operating costs

  • Continues to work during some power outages

Cons

  • Require a ventilation plan

  • May need access to your gas line

  • More complex to install 

Electric Water Heaters 

Pros

  • Lower installation costs 
  • Simpler to maintain 
  • No combustion or venting requirements 

Cons

  • Slower to recover

  • More expensive to operate 

Condensing Water Heaters 

Another option is a condensing water heater, which is a high-efficiency gas-powered unit designed for homes with higher hot water demands. 

Pros

  • Extremely energy efficient

  • Lower operating costs

  • Ideal for larger households

Cons

  • More expensive upfront

  • Complex installation 

Five Factors to Consider When Choosing a Water Heater

Household Size
For larger households, they typically require a larger hot water capacity or a high-output tankless system. 

Goals for Energy Efficiency
Although higher-efficiency models often cost more upfront, they end up reducing utility bills over time. 

Available Space
Tankless units take up significantly less space than traditional tank water heaters. 

Budget
When researching, consider installation costs and long-term operating expenses. 

Future Needs
If you're adding bathrooms or an addition onto your home, you may want to look into heaters with greater capacity. 

Get Expert Insight for Choosing a Water Heater

There is no one-size-fits-all answer. Whether you're replacing an aging system or building a new home, our experienced team can help you compare residential water heater options and select the one for your specific needs. Contact That Plumber today to schedule a consultation for water heating solutions.