Types of Tankless Water Heaters: Which One Is Right for You?

Looking to upgrade your water heater? Tankless water heaters offer on-demand hot water, energy savings, and longer lifespans. But not all tankless water heaters are created equal. Understanding the different types of tankless water heaters, their advantages, and drawbacks will help you make the best decision for your home or business.

🔍 Top Searches This Article Answers:

• What types of tankless water heaters are there?

• Electric vs. gas tankless water heaters

• Indoor vs. outdoor tankless systems

• Best tankless water heater for my home

• Tankless water heater pros and cons

🛠️ What Is a Tankless Water Heater?

A tankless water heater, also known as an on-demand water heater, heats water only when you need it—unlike traditional tank models that constantly store and reheat water.

✅ No bulky tank✅ Energy efficient✅ Endless hot water✅ Longer lifespan (15–20 years)

🔎 4 Main Types of Tankless Water Heaters

Electric Vs Gas Tankless Water Heater

1. 🔌 Electric Tankless Water Heater

How it works: Uses electric coils to heat water instantly as it flows through the unit.

✅ Pros:

• Lower upfront cost

• Compact and lightweight

• Easier to install (no venting required)

• No gas line needed

• Ideal for smaller homes or point-of-use (e.g., bathrooms)

❌ Cons:

• May struggle with high hot water demand

• Requires upgraded electrical capacity

• Higher operational costs in areas with expensive electricity

💡 Best For: Apartments, small homes, or point-of-use applications

2. 🔥 Gas Tankless Water Heater (Natural Gas or Propane)

How it works: Burns natural gas or propane to heat water as it flows through the heat exchanger.

✅ Pros:

• Heats water faster than electric models

• Handles large demand (multiple showers, dishwashers, etc.)

• Lower operating costs in areas with cheap gas

❌ Cons:

• Higher upfront cost

• Requires proper venting and gas lines

• Larger and heavier than electric models

💡 Best For: Medium to large households with high hot water usage

Indoor Vs Outdoor Tankless Water Heater

3. 🏠 Indoor Tankless Water Heater

Installed inside your home (garage, utility room, closet, basement) and vented through a wall or ceiling.

✅ Pros:

• Protected from weather elements

• Easier maintenance access

• Safer from freezing temperatures

❌ Cons:

• Requires a ventilation system

• Takes up indoor space

• Needs proper gas and water connections

💡 Best For: Homes with space indoors and cold climates

4. 🌦️ Outdoor Tankless Water Heater

Mounted outside the home and built to withstand the elements.

✅ Pros:

• Saves indoor space

• No need for a venting system

• Easier installation in some cases

❌ Cons:

• Exposed to weather, may need freeze protection

• More difficult to service in rain or snow

• Lifespan may be shorter if not protected

💡 Best For: Homes in warm climates with limited indoor space

📊 Comparison Chart: Types of Tankless Water Heaters

Feature	Electric	Gas	Indoor	Outdoor
Cost to Install	Low	Moderate to High	Moderate	Moderate
Energy Source	Electricity	Natural Gas / Propane	Varies	Varies
Hot Water Capacity	Low–Moderate	High	Varies	Varies
Best For	Small homes, point-of-use	Large families	Cold climates	Mild climates
Installation Location	Indoor	Indoor/Outdoor	Indoors	Outside
Maintenance Needs	Low	Moderate	Easy access	Weather-dependent

🧰 Additional Options to Consider

• Condensing Tankless Water Heaters: Capture and reuse exhaust heat for higher energy efficiency.

• Non-Condensing Models: Simpler and cheaper but less efficient.

• Recirculation Pumps: Deliver hot water faster, but add to installation costs.

🔎 Choosing the Best Tankless Water Heater

Ask yourself:

• How many people live in your home?

• How many appliances use hot water at the same time?

• What’s your energy source: gas or electric?

• Do you have room indoors, or prefer to install outside?

A licensed plumber or contractor can help size and select the ideal model for your specific needs.

Local Rooter Corp. Tankless Water Heater Service

💡 Notes for Choosing:

Consideration	Electric	Gas	Indoor	Outdoor
Power Source Available?	✔️ Electric Panel	✔️ Gas Line	—	—
Cold Weather?	❌ Less Ideal	✔️ Gas Better	✔️ Indoor Safer	❌ Needs Freeze Protection
Home Size?	Small-Mid	Mid-Large	Any	Mild Climate Only
Ease of Install?	Easiest	Requires Venting	Requires Space	No Venting Needed

🛠️ Need Help Choosing or Installing a Tankless Water Heater?

At Local Rooter Corp., we provide:

✅ Professional installation

✅ Permit and code compliance

✅ Gas, electric, indoor, and outdoor models

✅ Maintenance and repair services

✅ Energy-efficient upgrades

📞 Get a Free Tankless Water Heater Consultation

📱 Call or Text: (408) 868-8759

🌐 Visit: www.localrooter.net

📍 Serving San Jose and surrounding areas