The Best Tankless Water Heaters for Your Money – 2018

Are you considering a tankless water heater? You’ve come to the right place! Tankless water heaters have a ton of benefits over traditional units.

They can save you significant money on your utility bills – most homes see a 30% energy savings compared to tank-based water heaters! They also have the potential to provide continuous hot water since they are not limited by tank size.

We’ve done all the research, and have identified the best tankless water heaters on the market, so you can find the right fit for your home. We’ll help you figure out the best option based on your individual needs, so you can spend your money wisely.

The right water heater depends largely on the size of your household and the climate you live in.

Here are our top picks!

BEST PERFORMANCE

rheem 9.5gpm tankless water heater
$$$
Gas
9.5 GPM Flow Rate
4+ person households
Suitable for large households with multiple bathrooms and high demand.
Best performer, with enough capacity to service large homes. Freeze protection to -30 degrees.

BEST VALUE

takagi tankless water heater
$$
Gas
6.6 GPM flow rate
3+ person households
Suitable for medium-sized homes with two bathrooms, or small homes that need great cold weather performance.
Reliable unit that offers a great balance between value and performance.

MOST ECO-FRIENDLY

ecosmart tankless water heater
$$
Electric
3 GPM Flow Rate
1-2 person households
Suitable for small homes, or medium sized homes in warmer climates.
Highly efficient, eco-friendly unit, that comes with a lifetime warranty. Can get up to 6 GPM flow rate in warm climates.

BEST FOR SMALL HOMES

rheem 13 tankless water heater
$
Electric
4GPM Flow Rate
1-2 person households
Suitable for small homes and apartments
Great value for smaller homes with low demand, especially in warmer climates. Not suitable for multiple bathrooms or cold weather.

Buying a Tankless Water Heater

What is a tankless water heater?

Conventional water heaters store water in large tanks to keep the heated water at a predetermined temperature. Tankless water heaters heat water continuously, when it’s actually needed for use.

What are the benefits of tankless water heaters?

The main benefit of a tankless water heater is energy savings. Traditional water heaters constantly consume energy to keep the stored water at a high temperature. In contrast, a tankless water heater heats the water when it’s needed. A flow switch detects the water flow on demand and activates the system for heating the water, utilizing much less energy. A typical home can use roughly 30% less energy with a tankless water heater.

How to Choose a Tankless Water Heater

The key considerations when selecting a tankless water heater are the size of the household and climate where it is located. Each tankless water heater has a maximum flow rate, which tells you how much hot water it can effectively pump out each minute.

In a larger household, where you may have two people showering at the same time or several appliances (like a dishwasher and clothes washing machines) running simultaneously, a higher capacity water heater will be required.

As an example, a shower discharges around 9.5 liters per minute, a washing machine uses around the same and a sink requires around 3.8 liters per minute.

It’s also takes much less energy effort to heat water in warmer climates than in freezing ones. So you may be able to get away with a lower capacity unit in a hot climate, and you may need to consider a higher capacity one if your area gets freezing temperatures regularly.

In very large homes with many bathrooms and appliances, it may be necessary to install more than one tankless water heater unit.


Best Tankless Water Heater Reviews

Takagi T-KJr2-IN-NG Indoor Tankless Water Heater

takagi tankless water heater

The Takagi tankless water heater is our choice for the best value. With a flow of 6.6 gallons per minute, it has enough capacity to cover most medium-sized households, without an expensive price tag.

This is also a great choice if you live in a smaller home in a colder climate, where you experience freezing temperatures. 

Pros:

Despite its compact size of just 6.7 x 13.8 x 20.3 inches and weight of only 33 pounds, it can provide 6+ gallons of heated water each minute.

The unit is designed so that it can be mounted up on the wall if desired, taking up less floor space.

One nice feature is the remote control, which can make heat regulation easier for the user, especially if the unit is hidden away out of sight.

Cons:

As with all gas units, installation will be a little trickier than with an electric unit.

And despite it’s high capacity, this still may not be enough if you have a very large household with the need to run several showers and appliances at once. If that’s the case, consider the Rheem 9.5 GPM unit.

Check Price of Tagkagi Tankless Water Heater


Rheem RTE 9 Electric Tankless Heater Review

Rheem 9.5GPM Tankless Water HeaterThe Rheem RTE 9 is the best pick for high-end performance. This unit has enough capacity to service a large home without any problems.

Pros:

The incredible 9.5 GPM flow rate is enough to cover multiple bathrooms, plus run appliances like dishwashers simultaneously.

It also won’t have any problems keeping up in cold weather. It has an insulated stainless steel cover to help prevent heat loss. And it boasts freeze protection down to negative 30 degree (F).

It’s compact size also makes it easy to hide by installing in out-of-the way places.

Cons:

This is gas-powered unit, which means installation will be a little more difficult than with electric units.

Otherwise, the only real downside to this water heater is the price tag. It’s more of an investment than our other recommendations, but if you are willing to pay for top performance, this is the best unit you can get!

Check Price on Rheem RTE 9 Tankless Water Heater


Ecosmart ECO 27 Electric Tankless Water Heater 

ecosmart tankless water heaterIf energy savings is your first priority, the Ecosmart ECO 27 would be my first choice. Ecosmart claims it can save you up to 60% on your energy bill, which is great for both your wallet and the environment.

Pros:

With its self-modulating design, this water heater is capable of regulating the amount of energy used to heat the water supply, helping you save money on your electricity bill.

With a 3 gallon per minute flow rate, the ECO 27 is best suited to smaller homes and apartments. However, in warmer climates it can get up to 6 gallons per minute, making it a consideration for medium-sized homes in warm regions as well.

Since the ECO 27 is an electric water heater, installation is very simple and it can be installed just about anywhere.

Cons:

The ECO 27 has plenty of capacity for small households, but will have trouble keeping up with very large homes or homes in very cold climates.

Check the Price of Ecosmart ECO 27 Tankless Water Heater


Rheem RTE 13 Electric Tankless Heater Review

Rheem RTEX-13 Tankless Water HeaterThe Rheem RTE 13 is the most affordable tankless water heater on our list. Despite it’s friendly price tag, this one packs enough punch to handle the needs of a 1-2 person household with ease.

Pros:

Weighing 7.3 pounds with a size of 7.2 x 7.2 inches, this is a very compact unit that won’t take up too much space.

The flow capacity is limited at 4 gallons per minute. But if you only need to supply one bathroom in a small home, this is the most affordable way to do it.

Cons:

With the limited capacity, this unit won’t be suitable for larger households, and may have trouble keeping up in very cold climates.

Check Price on Rheem RTE 13 Tankless Water Heater