What to Look for When Choosing a New Water Heater

Replacing your water heater is not as simple as picking the first model you find. It requires a solid understanding of how various systems work, what size fits your home, and how energy usage impacts your bills. Whether you're replacing an old unit or outfitting a new build, your choice will affect daily comfort and long-term costs. At Tiger Plumbing Heating & Air, we know the right system can improve performance and reduce future maintenance.

The selection process brings important questions. Should you choose a tank or tankless model? What capacity matches your household’s water usage? Is efficiency, lifespan, or cost your top priority?

Keep reading to learn how to make the smartest choice. This guide will cover everything you need to know to find a water heater that delivers reliable comfort, efficiency, and value for years to come.

Comparing Tank, Tankless, and Hybrid Water Heaters

Water heaters fall into several major categories—tank, tankless, and hybrid—each with distinct performance and installation characteristics.

Traditional tank water heaters store a set volume of hot water, typically between 30 and 80 gallons, and heat it continuously to maintain a set temperature. They are widely available, relatively inexpensive, and easy to install. However, they consume more energy over time due to standby heat loss and may run out of hot water during peak usage.

Tankless water heaters, also known as on-demand systems, heat water as it flows through the unit. They offer increased energy efficiency since they eliminate standby loss and are more compact than tank models. These systems are ideal for households looking to reduce energy costs in the long term. However, their initial installation costs are higher, and they may struggle to supply sufficient hot water when multiple outlets are in use simultaneously. Hybrid water heaters combine tank storage with heat pump technology to maximize efficiency by transferring heat from the surrounding air. These units use less electricity than standard tanks but require more installation space and ideal ambient conditions to operate efficiently.

Understanding these differences allows homeowners to match a system to their specific needs. For example, smaller homes with limited space may benefit from a tankless unit, while larger families with steady demand might prioritize a high-capacity tank. 

Determining the Right Water Heater Size for Your Home

Proper sizing is one of the most important factors when choosing a water heater.

A unit that’s too small will fail to meet demand, while an oversized one increases upfront and operational costs. For tank-style water heaters, size is measured in gallons. A typical household of two may only need a 30–40-gallon tank, while homes with four or more people generally require 50–80 gallons. These estimates also depend on usage patterns—taking multiple showers, running laundry, and operating dishwashers simultaneously will increase demand.

Tankless water heaters are sized by their flow rate, measured in gallons per minute (GPM). A typical shower uses 2.5 GPM, so a tankless system that serves multiple bathrooms must supply 5–7 GPM or more. The climate also plays a role; colder groundwater requires more heating power, affecting output. Sizing for tankless units also considers temperature rise—the difference between incoming water temperature and the desired output temperature.

Accurate sizing involves evaluating peak water usage and understanding appliance demands. Consulting with a professional plumbing team ensures that the selected unit handles all scenarios without wasting energy or falling short during high-demand periods.

Understanding Energy Efficiency Ratings in Water Heaters

Water heaters are evaluated by their energy factor (EF) or uniform energy factor (UEF), which measures the unit’s efficiency in converting energy into hot water.

The higher the EF or UEF, the more efficient the system. Traditional tank water heaters have UEF ratings between 0.58 and 0.65 for electric units and slightly lower for gas models. Tankless water heaters often achieve UEF ratings above 0.90, making them one of the most energy-efficient options available.

These ratings also consider standby heat loss and cycling losses, both of which affect long-term operational costs. Energy Star-rated models typically fall in the highest UEF brackets and offer features such as better insulation, advanced burners, or heat pump technology to reduce waste. Hybrid electric water heaters, for example, often reach UEF ratings above 3.0, meaning they produce more hot water per unit of energy consumed than standard models.

Incorporating energy-efficient models can lead to significant annual savings, especially in high-use households. While upfront costs are typically higher, rebates, lower operating expenses, and longer lifespans often offset initial investments.

When comparing models, prioritize UEF ratings, operating cost estimates, and projected energy use over the unit's life cycle.

How to Extend the Lifespan of Your Water Heater

Water heaters have average lifespans of 8–12 years for tank models and up to 20 years for tankless units.

However, with proper maintenance, many units exceed these benchmarks. Routine tank flushing removes sediment buildup, which can reduce efficiency and lead to internal corrosion. In areas with hard water, sediment accumulation occurs faster, making annual flushing even more important. Installing a whole-house water softener can reduce mineral deposits and extend the unit’s operating life.

The anode rod in a tank water heater attracts corrosive minerals and prevents rust from damaging the tank’s interior. Depending on water conditions, this component should be inspected and replaced every 3–5 years. Descaling the unit periodically with a vinegar solution for tankless systems prevents mineral buildup in the heat exchanger and maintains system performance. Monitoring the pressure relief valve and checking for leaks also prevents catastrophic failure and water damage.

Following manufacturer guidelines and scheduling annual inspections helps identify early issues before they turn into major problems. Timely maintenance prolongs service life and maintains peak efficiency, minimizing utility costs over time.

Recognizing When It's Time to Replace Your Water Heater

Signs that a water heater is nearing the end of its life include inconsistent water temperatures, reduced hot water availability, discolored water, and strange noises like popping or rumbling.

These sounds typically indicate sediment buildup or internal wear. Leaks around the base of a tank system often signal internal corrosion, which is usually irreparable. A declining performance or increased energy bills may also point to aging components or a failing thermostat.

Another clear indicator is the age of the unit. Tank water heaters older than 10 years and tankless units over 15 years are often no longer worth repairing. At this stage, components begin to fail more frequently, and replacement becomes more cost-effective. Manufacturers include serial numbers on each unit to help determine production dates and estimate the service window.

If your system exhibits any of these issues, it’s time to evaluate replacement options. Modern units offer improved efficiency and performance, which can translate into lower energy bills and better reliability. 

Get Expert Help Choosing and Installing Your Next Water Heater

Choosing the right water heater means balancing performance, capacity, and efficiency to meet your household’s needs without overspending.

Understanding the differences between tank and tankless models, reviewing energy efficiency ratings, and selecting the right size all contribute to long-term satisfaction and savings. Preventative maintenance and recognizing early signs of wear can also extend your system’s life and avoid unexpected issues.

The Tiger Plumbing Heating & Air team offers the expertise and product knowledge to help you make an informed choice. Whether replacing an old unit or outfitting a new home, we provide clear advice, licensed installation, and full support to ensure your new water heater performs reliably for years. We work with all major types and offer maintenance solutions to help you get the most from your system.

Ready to get started? Call us at 612-445-3030 or request your free estimate today. Our expert team is ready to help you choose a water heater that brings comfort, efficiency, and peace of mind to your home.