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Basements, specifically those without any air conditioning, are the best location for a hybrid water heater. These rooms are less likely to experience extreme temperature fluctuations, which can affect your hybrid water heater’s efficiency and performance. Basements often have more than enough space for their tanks and proper air circulation. Hybrid water heaters can also be a bit noisy, but putting them in your basement will keep the noise away from your main living areas.

While not all homes require a hot water heater expansion tank, they are necessary in most newer homes and are often mandated by local building codes. Codes typically require an expansion tank if your plumbing system is a 'closed-loop' system, which often includes a backflow preventer or pressure regulator on the main water line. Some municipalities have specific requirements. Installing an expansion tank on a closed system is crucial, as it prevents excess pressure that can damage your water heater and other appliances, potentially shortening their lifespan. However, tankless water heaters do not require an expansion tank.

Electric water heaters use a high amount of electricity, so they’re best for homeowners who subsidize their electric bill with solar or who live in an area with inexpensive electricity. For others, gas water heaters versus electric water heaters may be the more cost-effective solution, with the added bonus of heating water quickly and efficiently. No matter which you choose, you can lower your water temperature as low as possible to keep costs down.

If you have a tank-type electric water heater, it runs regularly to keep the water at the desired temperature. If you live in a home where you don’t use much hot water, it could seem wasteful to run power to heat water that you’re using infrequently. You could save some power by using a smaller tank, insulating the tank, or lowering the temperature of the water heater.