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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.

Installing a water heater without a permit can result in high fines—as much as hundreds of dollars per day, in some areas. It can also void your homeowners' insurance and cause problems when selling your home because it violates local building codes and safety regulations.

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.

Yes, you can replace a current tank water heater with a tankless model or vice versa. If you’re maintaining the same fuel source—gas or electricity—the switchover should be smooth. A conventional tank requires open floor space, while a tankless model can be wall-mounted. If you’re switching to a tank water heater, you might need to clear space for it. Gas-powered tankless water heaters need a large volume of gas when they start running to heat the water instantly. You might need to increase the size of the gas line when going from a tank to a tankless model.