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No, boilers and water heaters are not interchangeable because they serve different primary functions. Boilers are used for central heating systems, providing hot water or steam to heat your home. In contrast, a water heater's purpose is to supply hot water for daily household use, such as for faucets and showers. A water heater alone cannot supply the warm water or steam needed for a central heating system.

While they are not interchangeable, it is common to have both a boiler and a water heater. In fact, a conventional boiler often works best when a water heater system is already in place. The two systems can be combined to provide both heating and hot water, either by pairing a boiler with an indirect water heater or by installing a premade combination boiler-water heater unit. For home heating, some homeowners may also opt for a furnace instead of a boiler.

Not all types of water heaters require a venting system. Electric tankless water heaters don’t use natural or propane gas, so no venting is required. Instead, they use electric burners to heat water quickly and efficiently. However, any system that does use gas or propane will require ventilation.

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.

In most municipalities, a license is not mandatory for water heater installation or replacement. However, we strongly recommend hiring a licensed plumber or water heater installer to handle the work. Licensed installers are far less likely to make a mistake during the installation, which means paying for the experience decreases your risk of a leak and other issues. You can use our state licensing tool to find out if a contractor you’re considering in your area holds a plumber’s license.