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There are pros and cons to tankless water heaters. They are more efficient than traditional tank water heaters, and maintenance costs are lower. These units are also much more compact. On the other hand, they cost about twice as much to install as traditional tank water heaters and are more limited in terms of flow rate.

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.

Price variations arise from size, type (tankless or tank), efficiency grades, and installation complexity, including labor and materials.

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.