What should I replace my hot water tank with?

Author: Ronaldo Langworth PhD  |  Last update: Monday, September 22, 2025

10 Water Heater Replacement Options
  • Tankless Water Heaters. The first option to discuss with homeowners is tankless water heaters. ...
  • Heat Pump Water Heaters. ...
  • Solar Thermal Water Heaters. ...
  • Quick Recovery Water Heaters. ...
  • Self-Cleaning Water Heater. ...
  • Mixing Valves. ...
  • Expansion Tanks. ...
  • Recirculation Pumps.

What should I replace my hot water heater with?

Heat pump water heaters move heat from one place to another instead of generating heat directly for providing hot water, resulting in high efficiencies and significant cost savings. Solar water heaters use the sun's heat to provide hot water and also save money on energy bills.

What can I replace my water tank with?

To remove the water tank from the loft and receive water at mains pressure you will need to replace the regular boiler with a system or a combi boiler. A system boiler takes its water from the mains and will heat the water for your radiators, but not your taps.

What to use instead of a hot water tank?

Heat pump water heater IMO. They are designed to replace conventional electric water heaters, they use the same wire, and pretty much take up the same space. They make about as much noise as a clothes dryer, they don't require a flue, a larger eclectic service, a larger gas meter, or a gas line.

Is it worth converting to a tankless water heater?

According to the US Department of Energy, tankless water heaters can be up to 34% more efficient than traditional tank-style models. This is because they only heat water when it's needed, eliminating standby energy loss. Furthermore, tankless water heaters have a longer lifespan compared to tank-style models.

Replace Your Water Heater Yourself in 10 Easy Steps

What is the downside of a tankless water heater?

Before you commit to buying a tankless water heater, the primary drawbacks to know include: Higher upfront costs. Tankless water heaters are, on average, quite a bit more expensive to buy and install than tank water heaters. Access to fuel.

Can I replace my 40 gallon water heater with a tankless water heater?

Absolutely! In fact, tankless water heaters are becoming the standard for new home construction because of the energy efficiency.

Is there an IRS tax credit for a tankless water heater?

The federal tax credit for tankless water heaters can lead to significant savings for homeowners. Eligible tankless gas water heaters must have an ENERGY STAR certification and a UEF of greater than 0.95. Homeowners can claim up to $3,200 in tax credits for eligible home improvements in a single year.

Why do people not like tankless water heaters?

Additional Installation Costs

Tankless water heaters are much more complex than traditional hot water tanks. As a result, they require professional installation. If you're switching from a hot water tank to a tankless unit, you will likely need your gas lines rerouted, as well as a larger gas supply line.

What trade replaces hot water heaters?

After buying a new water heater from a plumbing company, it is installed by a licensed plumber. He or she performs all work necessary to place your new system into service for your family's use.

When should a water tank be replaced?

When should I consider replacing my water heater? If you suspect your water heater is more than 10 years old—it is time to consider replacing it before you're left with an emergency decision. To determine the age of your water heater, you'll need to identify the Brand Name and Serial Number for your unit.

Does Home Depot install hot water tanks?

The Home Depot partners with local, licensed and insured professionals to help homeowners choose the right water heater for their home. If you live within 30 miles of a Home Depot store and call us before noon at 1-800-HOME-DEPOT, our team offers same-day installation.

What water heaters do plumbers recommend?

AO Smith, State, and Bradford White are all very dependable brands and are known by professional plumbers for top-quality gas and electric water heaters. Master plumber Eddie Heil put it this way, “AO Smith, State, and Bradford White are all great choices in our experience.

How often should a hot water tank be replaced?

Water Heater Lifespan

If your tank water heater is more than 10 years old, it may be time to consider replacing it. With proper maintenance, a tank water heater tank should last six to 12 years. A tankless water heater can last for more than 20 years. Check your water heater's warranty for the most accurate timelines.

What is the most efficient hot water system?

An electric heat-pump hot water heater uses much less electricity than an electric storage water heater, and are the most efficient hot water systems on the market.

What is the alternative to a hot water tank?

How Tankless Water Heaters Work. Tankless water heaters heat water instantaneously without the use of a storage tank. When a hot water faucet is turned on, cold water flows through a heat exchanger in the unit, and either a natural gas burner or an electric element heats the water.

What is the downfall to a tankless water heater?

A tankless water heater cannot provide hot water faster than its ability to heat the water. While a tank unit can provide hot water for multiple uses at once, a tankless unit might not be able to support simultaneous usage, such as washing dishes, taking a shower and running a washing machine all at once.

How much should I spend on a water heater?

Naturally, tanks that heat more gallons of water typically have a higher price point, so the larger the tank size, the more you can expect to pay. For example, the average 40-gallon water heater installation cost runs between $1,000 and $2,500, while its 80-gallon counterpart runs between $2,650 and $3,910.

Can you write off a new hot water heater?

You can claim 30% of the project cost, up to a $2,000 maximum credit. Heat pump water heaters that have earned the ENERGY STAR are eligible for this credit. You can find a list of ENERGY STAR certified models here.

What is the best tankless water heater?

7 Best Tankless Water Heaters for Large Homes in 2025
  • Best Overall: Rinnai RU199iN.
  • Best Premium: Navien NPE-240A.
  • Best Gas Option: Rheem RTGH-95DVLN.
  • Best Electric: Stiebel Eltron Tempra 36.
  • Best Value: EcoSmart ECO 36.
  • Best Compact: Takagi T-H3-DV-N.
  • Best Warranty: Noritz NR981-DVC-NG.

Are hybrid water heaters worth it?

Hybrid water heaters are an excellent choice for all-electric homes with sufficient space and mild climates. While the initial cost may be higher, government incentives and utility savings over the unit's longer lifespan make them a cost-effective and environmentally friendly investment.

Why avoid a tankless water heater?

Upfront Costs

The upfront cost of equipment is often higher for tankless units. Tankless water heater costs are running anywhere from 25% to 50% more than standard tank units. Additionally, gas models tend to be more expensive than electric ones.

Does Costco sell tankless water heaters?

And to keep the hot water flowing, we offer a variety of high-performance water heaters, including electric water heaters, energy-saving tankless water heaters, and the latest smart water heaters. Costco carries a variety of lighting that's perfect for your kitchen, bathroom, dining room, and outdoor living areas.

What is the average cost to convert to a tankless water heater?

The typical range for tankless heater installation is between $5,400 and $7,400 averaging out to around $6,400 (including the water heater, warranty and tune ups). The tankless installation without the unit can cost between $1800 and $3500, averaging out to around $2650. One of the big variables is labor rates.

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