Best Energy Efficient Water Heaters for Lower Bills
Answering your search for energy efficient water heaters, these five models excel at reducing energy use while delivering dependable hot water. The top picks vary by fuel type and household needs, helping you choose based on space, installation requirements, and hot-water demand. Best for spacious homes with high hot-water needs are tankless options; best for tight spaces are compact electric models; best for reliability and long warranties are high-efficiency hybrids.
The following quick-reference table summarizes the five options and who they’re ideal for. Use this as a starter guide before diving into detailed product sections.
| Product | Best For | ||
|---|---|---|---|
| Rheem 50 Gal. Smart High Efficiency Hybrid Heat Pump Water Heater | Large homes with high hot-water demand | Electric (hybrid heat pump) | High efficiency, long warranty |
| Rheem RTGH-95DVELN-3 Condensing Indoor Tankless Gas Water Heater | Large homes with simultaneous showers | Natural gas | Very high flow, efficient condensing design |
| EcoSmart ECO 11 Electric Tankless Water Heater | Space-constrained locations | Electric | Compact, efficient, self-modulating |
| Rheem RTGH Series 8.4 GPM Tankless Gas Water Heater | Indoor tankless performance | Natural gas | Compact and efficient |
| Rheem RTG-70DVLN-3 Indoor Tankless Gas Water Heater | 2–3 bathrooms, moderate demand | Natural gas | Good balance of size and output |
Rheem 50 Gal. Smart High Efficiency Hybrid Heat Pump Water Heater
The Rheem Hybrid Heat Pump Water Heater combines electric storage with heat-pump efficiency. It must be wired into your home’s electrical system, typically requiring a dedicated circuit much like large electric appliances. This unit is best for homeowners seeking long-term energy savings and a high-capacity supply for families with multiple daily hot-water demands. The 50-gallon tank provides ample supply for daily routines without frequent re-heating. Consider this model if you want a hybrid approach that leverages ambient heat to cut electricity use.
Who it’s best for: Homes with ample electrical capacity and a need for reliable, steady hot water across multiple simultaneous uses.
Why selected: High-storage capacity and hybrid energy strategy help minimize energy costs over time. The water heater’s design supports efficient operation in many climate zones.
Limitation: Requires installation by a qualified electrician due to dedicated circuit requirements; not a plug-in unit.
Rheem RTGH-95DVELN-3 Condensing Tankless Gas Water Heater
This high-efficiency condensing tankless unit delivers up to 9.5 GPM and 199,900 BTUs, supporting large homes with 3–4 bathrooms. It uses a condensing design that can save energy compared with standard tank heaters, potentially reducing utility bills while providing endless hot water during peak demand. It runs on natural gas and offers fast, reliable hot water delivery even under heavy load.
Who it’s best for: Families needing substantial hot water on multiple fixtures at once, especially in homes with high simultaneous demand.
Why selected: Strong flow rate and energy efficiency from a condensing system help lower energy use compared to traditional setups.
Limitation: Requires proper gas line installation and venting by a qualified professional; not suitable for all homes without appropriate venting and space considerations.
EcoSmart ECO 11 Electric Tankless Water Heater
The EcoSmart ECO 11 is a compact electric tankless water heater that uses patented self-modulating technology to adapt heat output to demand. It is designed to save space and energy, with a small footprint that can be wall-mounted or installed at the point of use. This model is especially attractive for point-of-use installations or smaller homes where space constraints are a top concern. Energy efficiency comes from heating only when needed and modulating power to match hot-water usage.
Who it’s best for: Apartment dwellers or small households where space savings are critical and hot-water needs are modest.
Why selected: Extremely small footprint and high efficiency per dollar, suitable for limited-space scenarios.
Limitation: May not provide sufficient flow for larger households with heavy simultaneous hot-water demands.
Rheem RTG-84DVLN-3 Condensing Tankless Gas Water Heater
The Rheem RTG-84DVLN-3 is an indoor tankless gas option in the condensing family, designed for efficient water heating with a compact footprint. It is suitable for homes with 2–3 bathrooms and moderate hot-water needs, delivering reliable performance and space-saving installation. This model emphasizes energy efficiency relative to traditional tank systems, while maintaining steady hot water supply as flows vary. It works best where gas lines and venting are properly configured for indoor use.
Who it’s best for: Households prioritizing energy efficiency with a compact indoor installation and moderate simultaneous demand.
Why selected: Balanced output and efficiency, making it a practical choice for mid-sized homes seeking reliable hot water without a large storage tank.
Limitation: Requires professional installation with proper venting and gas line considerations; not ideal for homes lacking adequate space for venting.”
Rheem RTG-70DVLN-3 Indoor Tankless Gas Water Heater
The Rheem RTG-70DVLN-3 is a high-efficiency non-condensing indoor tankless natural gas water heater rated at 7.0 GPM and 160,000 BTUs. It caters to homes with 2–3 bathrooms and multiple hot-water needs such as showers and laundry. Its compact design supports easy wall mounting by a qualified installer. This model provides reliable on-demand hot water while prioritizing energy efficiency in a compact package.
Who it’s best for: Homes with moderate hot-water demand and a need for a space-saving, indoor solution.
Why selected: Good balance of flow and installation practicality for smaller to mid-sized homes.
Limitation: Non-condensing design means slightly lower energy efficiency compared with condensing tankless units; ensure venting and clearances meet local codes.
Buying Guide: Key Considerations for Your Upgrade
- Fuel type: Electric versus gas affects operating costs, installation, and maintenance. Gas tankless units tend to handle higher flows, while electric models excel in tight spaces and simpler wiring.
- Flow rate and demand: Calculate your peak simultaneous hot-water needs (bathrooms, laundry, appliances). Choose a model with a GPM rating that exceeds your worst-case demand.
- Space and installation: Tank models require space for a tank and venting; tankless models emphasize compact footprints but may require venting for gas units or electrical panel upgrades for high-power electric units.
- Energy efficiency: Look for UEF, Yearly Fuel Utilization Efficiency, or energy factor metrics for tankless options. Condensing designs capture waste heat for better efficiency.
- Maintenance and service: Tankless systems may require annual venting checks for gas models and periodic descaling in hard-water areas. Electric models have different service needs tied to electrical components.
- Warranty and durability: Higher-end hybrids and condensing tankless units often include longer warranties, which can affect long-term ownership costs.
- Installation costs: Factor in professional installation, electrical upgrades, venting, and potential permits when evaluating total cost of ownership.
FAQs: Quick Answers for Buyers
Which type saves the most energy overall?
Hybrid heat-pump electric models and condensing gas tankless units generally offer higher efficiency, reducing energy use compared with traditional storage tanks.
Do I need a dedicated electrical circuit for electric water heaters?
Yes. Electric models, especially hybrids and tankless units, typically require dedicated circuits and proper panel capacity.
Is a tankless system better for a small home?
Tankless can be space-saving and energy-efficient, but ensure the model provides sufficient GPM for your hot-water demand. Point-of-use electric tanks can also be viable.
What maintenance do gas tankless water heaters require?
Gas tankless units may require vent inspection, gas line checks, and periodic descaling if you have hard water.
Are tankless systems more expensive to install?
Initial installation can be pricier due to venting, gas line work, and potential electrical upgrades, but long-term energy savings can offset costs.
Can these units deliver endless hot water?
Tankless systems can provide continuous hot water within their flow limits. If multiple fixtures demand hot water simultaneously, select a high-GPM model to avoid fluctuations.