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Typically, only a high-efficiency water heater with an inducer fan can be vented outside the house. Otherwise, your water heater needs to be installed on the inside and vented through the roof. However, certain areas may allow a standard-efficiency water heater to be vented outside. Check your local building codes to be sure.

Yes, most municipalities have codes that require water heaters to have pans. A pan is necessary when a water heater or hot water storage tank is installed in an area where water leakage could cause damage, such as an attic, second floor, or finished basement. Tankless water heaters are not required to have a pan since there is no storage tank.

Every type of water heater has its advantages and disadvantages. Understanding those can help you decide the best type for your situation and budget. 

Pros

• Safer than gas or propane

• Doesn’t require extensive venting systems

• Lower upfront costs

• Simpler to operate

• No pilot light

• Easier installation

• More efficient heating than gas models

• Available as point-of-use (POU) and whole-house units

Cons

• Slower to heat water

• Longer recovery time

• Possibly higher operating costs

• Doesn’t work during a power outage

• Costs can increase without a 240-volt connection

Most standard residential water heaters, which are typically around 40 gallons and use 240 volts and between 3,500 and 5,500 watts, require a 30-amp, two-pole circuit breaker. For smaller, point-of-use water heaters using 120 volts and between 1,500 and 3,000 watts, a 30-amp breaker is also often adequate. However, some models may have different needs; units that use more watts than average may require a 40-amp breaker, while smaller units might only need a 20-amp breaker. Newer, tankless, or more energy-efficient models can also require a higher amperage. Having the correct breaker size is crucial for safe and efficient operation, so it's best to consult a licensed electrician to determine the specific needs of your water heater.