Types of Water Heaters: Tank, Tankless, Heat Pump and More, Compared

When a water heater dies, most people replace it with the same kind they had. That's often the right call, but it's worth knowing the options first, especially if your family runs out of hot water or you're short on space.

What are the main types of water heaters?

Tank (storage) water heaters

The familiar cylinder in the basement. It keeps a tank of water hot all the time, heated by a gas burner or electric elements. Gas models usually recover faster after you use up the hot water. Electric models don't need a vent. Many tanks last somewhere around 8 to 12 years, though it varies. We install tanks up to 50 gallons. See how to flush a water heater for what maintenance involves.

Tankless (on-demand) water heaters

A tankless unit heats water as it flows through, only when a tap is open. It doesn't run out, and it hangs on the wall instead of taking up floor space. Gas tankless units often need a larger gas line and new venting. Each unit has a limit on how much hot water it can make at once, so it has to be sized for the number of showers and appliances you run at the same time. We maintain, diagnose and repair tankless units. We don't install or replace them.

Condensing water heaters

A high-efficiency gas heater, tank or tankless, that captures extra heat from its own exhaust before venting it. It uses less gas for the same hot water. It usually vents through plastic pipe and needs a drain for the condensation it makes.

Heat pump (hybrid) water heaters

A heat pump unit pulls heat from the surrounding air and moves it into a tank. It uses much less electricity than a standard electric tank, but it needs room around it and works best in a basement that stays fairly warm. We don't install heat pump water heaters.

Solar water heaters

Panels on the roof heat water or a fluid, usually with a backup heater for cloudy days and winter. They're rare in Central New Jersey and depend on roof space and sun exposure.

Oil-fired water heaters

Some older homes have them. We don't install or service oil-fired units.

Water heater types compared

How do you choose the right water heater?

• How many people shower in the morning, and do you run out now? A different size or type may help. We install tanks up to 50 gallons.
• What fuel do you have? Switching fuels means new gas piping or a new electrical circuit.
• How much space is there, and how will it vent? The venting is often what decides between models.
• Does your choice need an installer other than us? We don't install tankless, heat pump, oil-fired or over-50-gallon heaters.

What does replacing a water heater cost?

It depends on the type, the size, how hard it is to reach and whether venting or gas lines need to change, so we price each job after we assess it. A service call is $49, waived if you go ahead with the work. Written upfront flat-rate pricing options. You choose. Outside regular hours, emergency service requires a $250 upfront emergency fee. When paid, the standard $49 service fee is waived. During regular hours there is no emergency fee. Additional repairs are quoted before work begins. We respond immediately upon contact; dispatch and arrival depend on availability and location. Our water heater replacement cost guide explains what changes the price.

Need help choosing?

We repair and replace gas and electric tank water heaters up to 50 gallons. On tankless units we do diagnostics, repairs and maintenance only, with no tankless installation or replacement. See our water heater page, or call 908-873-6686 and tell us what you have now.