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A tankless water heater with a flow rate of 10 GPM should replace a conventional 50-gallon water heater. To avoid a surprise cold shower or two and to keep your energy costs in check, it's important to replace a conventional tanked water heater with the equivalent tankless water heater. Your household size and the number of hot-water-using devices you use at once can help you determine the best-size tankless water heater.

Electric water heaters do not need an attached vent, but the location of the water heater should allow for roughly 12 inches of clearance around it. This allows cool air to flow around the appliance and allows repair technicians to work on its components safely. The exact amount of clearance space required depends on your local building codes.

The average cost to replace a water heater is around $1,325, with a typical range of $900 to $1,800 for a standard replacement. The final price depends on the type of heater (tank vs. tankless), its size, fuel source (gas or electric), and the complexity of the installation. A simple one-to-one replacement will be on the lower end of the cost spectrum. However, if you are switching from one type of heater or energy source to another, you can expect labor costs to be significantly higher due to the extra work involved. It's also worth considering that while gas and electric heaters may have similar upfront costs, their long-term operating costs can differ based on local utility prices.

A single shower consumes an average of over 17 gallons, while brushing your teeth with the water running uses up to four unnecessary gallons. Watering the lawn spreads hundreds of gallons of water across the yard each time. Limiting water usage in these areas can significantly cut down your water bill.