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Here’s How to Choose the Right Water Heater

Looking for a new water heater?

Every home and cottage relies on a water heater for everyday comfort. From hot showers and clean dishes to laundry and handwashing, your water heater plays a critical role in daily life. Today’s water heaters come in a variety of types and sizes, each offering different features designed to match your household’s hot water needs, available space, budget and energy‑efficiency priorities. Before choosing a new water heater, it’s important to understand your options and what to look for to make the right long‑term investment.

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Storage tank water heater

Tankless water heater


Fuel Types

When replacing a hot water heater, it’s easiest to choose one that runs on the same type of fuel. The three main sources of water heater fuel are electric, natural gas and propane. Here’s what you need to know about each. All are available in both storage tank and tankless models.

Electric water heater

Natural gas water heaters

Propane water heater

Buying Considerations & Features

Find the water heater that’s right for your household’s hot water needs. Keep these key considerations and features in mind to help ensure reliable hot water—so you’re never left with a cold surprise in the shower.

first hour rating

First-Hour Rating (FHR)

The First‑Hour Rating (FHR) tells you how many gallons of hot water a storage tank water heater can deliver in one hour when starting with a full tank. It’s one of the most important factors for ensuring your household has enough hot water during peak use, such as mornings or evenings. As a general rule of thumb, multiply the number of people in your household by about 10–12 gallons to estimate the FHR you may need. Larger households or homes with heavy hot water use may require a higher rating.

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Flow Rate

For tankless water heaters, performance is measured by flow rate, expressed in gallons per minute (GPM). Flow rate represents how much hot water the unit can supply continuously. To determine your needs, add together the GPM requirements of the fixtures and appliances you may use at the same time. For example, running a shower rated at 2.0 GPM while a dishwasher uses 2.5 GPM requires a tankless water heater capable of delivering at least 4.5 GPM.

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Unit Size

The physical size of your water heater affects where it can be installed. A storage tank water heater typically requires more floor space, although slimmer and low‑profile models are available. A tankless water heater offers the most compact design, making it a popular choice for smaller homes, cottages, mobile homes, and utility rooms where space is limited.

energy factor

Energy Factor

Water heater efficiency is shown on the EnerGuide label, using either the Energy Factor (EF) or the newer Uniform Energy Factor (UEF) rating. These ratings measure how efficiently a water heater converts energy into hot water. The higher the EF or UEF, the more energy‑efficient the unit. Choosing an efficient water heater can help reduce energy consumption, lower utility bills, and support long‑term energy savings.

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Capacity

A storage tank water heater can hold anywhere from about 20 to 60+ gallons of hot water, depending on the model. The right tank size depends on the number of people in your household, your typical hot water usage, and the number of fixtures and appliances in use. Choosing a tank that’s too small may lead to running out of hot water, while an oversized tank can waste energy.

Glass-lined Tank

Glass-lined Tank

A glass‑lined water heater tank is coated on the inside to help protect steel surfaces from rust and corrosion. While the lining doesn’t make the tank corrosion‑proof, it significantly reduces wear over time and helps extend the overall lifespan of the water heater when combined with proper maintenance, such as regular anode rod checks.

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