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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.

The right way to vent a gas water heater is to have a pipe directly upward or slopes upward out of the house. Because hot air naturally rises, this type of venting will efficiently ensure that all gas moves out of the house. Your system may rely on fans or blowers as well.

Going from a tank to a tankless water heater is one of the most effective ways to lower your utility bills. The switch also frees up more space and ensures a consistent hot water supply, as the water is heated on an as-needed basis. It costs between $5,400 and $7,400 to install a new tankless water heater. Most installation companies will also help dispose of your old water tank.

If your water heater is about to celebrate the big 2-0, you may want to consider sending it off to greener pastures. While the water heater may seem to be working well, any conventional, tanked water heater over 10 years of age is at risk of failure. If your water heater is 20 years or older, your best move is to replace your aging heater before it completely breaks down.