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You have more options for water heaters than ever before. The best one for your home depends on your hot water usage and budget. Some of the more common types of water heaters are the conventional gas heater, a heat pump water heater, or a tankless heater for smaller homes or those with less water demands. Some uncommon types are solar and point-of-use systems. Some homes may have a combination of two units, such as a large heat pump heater and a backup point-of-use system.

Tankless water heaters are more expensive than those with a storage tank, but they come with some impressive benefits that most homeowners find worth the higher investment. Most importantly, they provide unlimited hot water, so you’ll never run out like you would with a storage tank. Tankless heaters are also more efficient, so comparing gallon-for-gallon, you’ll spend less on hot water with a tankless heater. Tankless water heaters are also smaller, require less maintenance, and tend to last longer than storage tank water heaters.

Yes, a heat pump water heater can work in colder climates but it’s much more effective where it’s warm. The reason is that the heat pump needs ambient warmth in the air to compress. The less warmth, the more compression required, thus using more electricity and offsetting the energy-efficient benefits.

Water heater installation code requirements are in place to keep your family and home safe. Water heaters that are installed wrong can simply not work. However, that's an, if you're lucky, type of situation. More commonly, incorrectly installed water heaters pose a real threat from carbon monoxide poisoning, gas leaks, water leaks, and even explosions.