Many factors determine which water heater is best for your home. The Home Depot offers a full line of water heaters with the latest technologies, from high-capacity traditional tank units to tankless models that deliver a near endless supply of hot water and save energy. This guide will help you understand the different types of water heaters and the features you should look for. Its easy to feel confident about choosing the perfect hot water heater for your home.  

Considerations 
The three main factors to consider in choosing your water heater are:

• Fuel – Gas or electric
• Water Storage – Tank or tankless
• Function – Whole house or Point of Use
  
  

Fuel
Most water heaters are fueled by gas or electricity. Refer to the table below to compare the differences between the two. 

Type	Factors to Consider
Gas	Requires a slightly larger up-front investment Must be vented outdoors for safety Units with sealed combustion or power venting increase safety Usually cost less to operate Not affected by power outages (tank-style only)
Electric	Generally cost less than gas models Easy to maintain Requires no combustibles or venting Heats water quickly Offer high energy factor ratings

Water Storage
Conventional tank water heaters store water in an insulated tank until it is needed. Tankless units do not store water but heat it by running it through coils. Each offer their own unique advantages, and you can compare features and benefits in the table below.

 

Type	How it Functions	Factors to Consider
Conventional Tank	Stores constantly heated water	Economical Can be positioned in closet, basement or garage Capacity ranges from 20 to 80 gallons Efficiency varies between models, brands and fuel sources
Tankless	Heats cold water with a gas burner or electric element as it passes through the water heater	Require a larger up-front investment Hang on wall and frees up floor space Excellent option for residences occupied part-time Reduce energy consumption by as much as 30% Can run out of hot water during heavy usage Requires ventilation

Whole House and Point of Use Systems
Conventional tank water heaters are whole house systems that send hot water from the tank through the house to the point where you want hot water. Tankless water heaters are typically whole house systems as well, heating water as needed. Whole house systems can provide hot water to more than one fixture at a time. Depending on the size of your home and the number of fixtures, you may need to consider adding additional hot water heating capacity.

 

Point of use systems are individual units that install directly under the sink or in a closet. These systems deliver instant hot water to a specific location. Point of use systems typically augment a whole house system when instant or additional hot water is needed.

 

Other Criteria
Once you’ve determined the fuel, tank type and whether you want a whole house or point of use system, you’ll want to consider capacity, fuel efficiency, and size options.

Capacity 
It’s important to select a hot water heater that provides enough hot water for your home. An undersized water heater will work harder and have a shorter lifespan. 

Conventional Tank: Determining the proper capacity for your household based on the number of bathrooms and bedrooms in your home. If you choose to purchase a unit with a tank, consult the table below for help in determining storage capacity.

 

Determine Water Heater Capacity

Number of Bathrooms   1 − 1.5   2 − 2.5 3 − 3.5 Number of Bedrooms       1 2 3               2 3 4 5                 3 4 5 6         Minimum Tank Size       20 30 40               50 50 50 60                 50 60 60 80

Tankless: To determine the size of the tankless hot water heater you need, you’ll need to calculate how much hot water you’ll need at one time, which is called the flow rate. Flow rate is measured in gallons per minute (gpm). The table below provides typical flow rates for typical household hot water applications.

Fixture/Appliance	Typical Flow Rates
Bathroom Faucet	0.5 – 1.5 gpm
Low Flow Kitchen Faucet	3.0 – 7.0 gpm
Shower	1.0 – 2.0 gpm
Dishwasher	1.0 – 2.5 gpm
Clothes Washer	1.5 – 3.0 gpm

To determine the gpm you need, add the gpms of the major fixtures or appliances you expect to be using simultaneously. As an example, if you typically run the kitchen faucet (1.5 gpm) and the dishwasher (2.5 gpm) at the same time, you’ll need to heat 4.0 gpm of water. Once you have identified the maximum gpm required for your tankless unit, the next factor to consider is the temperature rise it needs to provide. 

 

Dimensions
Once you know the capacity for your water heater, remember to take the unit’s dimensions into consideration. 

• A new conventional storage replacement unit may be larger than the old one because more insulation is required to meet the latest strict federal energy standards. Keep this in mind where units are installed in closets or other close quarters.

• If you are upgrading to a larger unit, you may need to have plumbing run to it if it has to be relocated. One way to avoid relocating the unit is to select a model in a non-standard size, such as a unit that is shorter but larger around, known as a “low boy” hot water heater.

• If you are purchasing a tankless water heater, be sure the location you choose for installation meets ventilation requirements.

• The ideal location for a tankless unit is on an exterior wall near a gas supply line, water supply line and electrical power source. This is also the easiest and most cost-effective way to run the venting.

• The unit should have ½” clearance on the sides, 12” on the front and 18” off the floor.

 

Energy Efficiency
Whichever fuel source you use, a water heater can be the third largest energy user in your home, so you’ll want a unit that offers energy and cost savings. Fortunately, almost all water heaters offer increased efficiencies to meet increasingly strict federal energy standards. Look for the Energy Factor (EF) rating on the unit. This rating measures how efficiently a unit converts energy into heat as well as how much heat is lost during storage. The higher the energy factor, the more energy efficient the water heater is. Look for EF ratings as close to 1 as possible. Electric heaters tend to have the highest EF ratings.