Which is better, a tankless or hybrid water heater?

Author: Scot Barrows I  |  Last update: Friday, August 8, 2025

If you only have electric access for your water heater, and the space is open, a hybrid may be the best option. However, if you have gas fuel, a smaller space, and want to save water as well, the tankless water heater is typically preferred.

Which is better, a tankless water heater or a hybrid water heater?

Energy Savings – Winner: Hybrid

This approach is far more energy-efficient than the traditional methods used by tankless water heaters, which rely on electricity or gas to generate heat.

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.

What is the downside of a hybrid water heater?

On the cons side, the initial investment is higher, they require more space than traditional heaters, their efficiency can vary with climate, and regular maintenance is necessary to ensure optimal performance. How do the hybrid water heater pros and cons compare with traditional water heaters?

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.

Tankless (electric) Water Heater vs Hybrid with a TESLA POWERWALL...which is BEST?

Do plumbers recommend tankless water heaters?

Tankless Water Heaters: Tankless water heaters, also known as on-demand or instantaneous water heaters, heat water directly without the need for a storage tank. Plumbers recommend tankless water heaters for their energy efficiency, space-saving design, and endless hot water supply.

What is the life expectancy of a hybrid water heater?

A hybrid water heater uses heat from the outside air to heat the water that comes into your home with the help of a heat pump (and electricity) and works as a refrigerator in reverse to heat the water coming into your home. On average, hybrid water heaters can last anywhere from 13 to 15 years.

Can you run out of hot water with a hybrid water heater?

Just like a tankless water heater, it is not running all the time, which makes for a real money saver when it comes to pulling electricity, so this is far more efficient than a standard water heater, but also keep in mind it still has a tank with an allowed amount of gallons of hot water so if your home is busy at a ...

Do hybrid water heaters qualify for tax credit?

One such energy-efficient upgrade that's covered through the program is the installation of hybrid water heaters. Under the program, homeowners who choose to install a heat pump water heater may claim up to 30% of the project cost on their tax return (up to a $2,000 maximum credit).

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.

When not to get a tankless water heater?

Electric Tankless Water Heaters

They're less expensive than gas-powered ones but aren't efficient if you run multiple hot water devices. They may struggle to keep up with multiple appliances at the same time.

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.

Are hybrid water heaters worth the extra cost?

Compared to a standard electric resistant water heater, a HPWH can save a family of four an estimated $550 a year on their energy bill with an expected average lifetime savings of more than $5,600!

What is the life expectancy of a Rinnai tankless water heater?

The life expectancy (or useful lifespan) of a Rinnai tankless water heater is up to 20 years. Actual life is impacted by water quality, usage and proper maintenance. For comparison, a tankless water heater lasts about twice as long as a tank water heater, making them a better value in the long run.

What is the most efficient type of hot water heater?

One type of water heater may use a fuel type more efficiently than another type of water heater. For example, an electric heat pump water heater typically is more energy efficient than an electric conventional storage water heater.

What are the cons of hybrid water heaters?

Cons:
  • Noisier than a standard electric water heater but roughly as loud as gas tankless heater.
  • More expensive then a standard electric.
  • Most need a 30 amp circuit (not a big deal if you have a 60+ gallon tank as those are generally 30 amp already)
  • Needs a drain as it condensates.
  • Space requirements.

How much does it cost to install a hybrid water heater?

Hybrid water heaters combine elements of conventional tank water heaters and their heat pump counterparts for improved efficiency. The labor cost to install water heater options like these may run more than usual due to extra essential components. The units usually run between $1,250 to $3,600.

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.

What brand of water heater lasts the longest?

Its award-winning construction makes the Rheem® Marathon® water heater the most durable electric water heater ever made. And its industry-best warranty makes it a smart purchase you can count on for years to come.

Do hybrid water heaters need maintenance?

Without proper maintenance, your hybrid water heater is vulnerable to a few different methods of failure. As they include both a heat pump-based system and an electric heating system, they're redundant to failure and can often still produce some hot water in the event one system or the other fails.

Does a hybrid water heater run all the time?

Hybrid water heaters do not run all the time, which makes them incredibly efficient. During periods of high hot water demand, the water tank fills to meet the demand, which means hot water will always be available.

What are the downsides of tankless water heaters?

Tankless water heaters have several drawbacks and disadvantages, including a higher initial cost, limited flow rate, specialized venting requirements, potential need for additional equipment, limited hot water supply, delayed hot water delivery, mineral buildup and maintenance, complexity of installation, dependence on ...

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.

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.

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