Different Types of Water Heaters and Their Benefits

No matter what kind of water heater you have, there’s no denying that it plays an important role in your household. You need it to heat water and ensure that everyone in your home has enough hot water to take a shower or do the dishes when they need to, but figuring out which type of water heater works best can seem like more trouble than it’s worth if you don’t know where to start.

This guide will help you learn about the different types of water heaters available today so you can make an informed decision when choosing one for your household.  

Common Types of Water Heaters: 

There are four main types of water heaters: Tankless Water Heater, Heat Pump Water Heater, Electric Storage Water Heater, and Gas-Fired Storage Water Heater. Each type has its own benefits, so let’s take a look at each one.


1. Tankless Water Heaters 

When it comes to types of water heaters, tankless water heaters (also known as instantaneous or on-demand) are a great choice if you need hot water quickly. These models don’t store any hot water, but instead use gas or electricity to provide you with hot water right when you need it. With no storage tank involved, you don’t have to worry about maintaining one; in fact, tanks can actually increase your utility costs over time due to storage losses. A second big benefit is that you won’t have to wait for your tankless heater to fill up before getting hot water—just turn on a faucet and start washing dishes, taking a shower or doing laundry.

Tankless Water Heater Benefits

  • Unlike a traditional tank water heater, which heats and stores water in a large storage tank, a tankless water heater only heats water as it’s needed. This means that if you live alone or have one bathroom, you don’t need to heat gallons of water at once just to get ready for your day. 
  • A tankless system heats on demand, meaning you can take a shower and run your tap at the same time without worrying about running out of hot water. If there are more people living under your roof, these types of systems save tons of money because they do not use much energy while still providing plenty of hot water. 
  • If you’re looking for an environmentally friendly option, tankless systems work well because they don’t create greenhouse gases like regular heating systems do. 
  • And finally, tankless systems save space – no more storing gallons upon gallons of water in advance! Manufacturers also make tankless heaters that include on-demand features with electric resistance elements to heat your water even faster. 

These models are cost-effective options that use less energy than other electric hot water heaters. They’re a good choice if your household is big or if you live in a rural area where it might take longer to get water from your tap to your shower head at certain times of day.

2. Heat Pump Water Heaters

A heat pump water heater can save you a ton on your utility bills. It uses electricity to power an electrical current which is used to move heat from one place to another. In essence, it’s a reverse air conditioner that works well for transferring heat from outside air into your home during summer months (and inside air in during winter). This technology has been around for decades, but due to its complicated nature, it was originally reserved for high-end consumers.

Heat Pump Water Heater Benefits

A heat pump water heater is one of the most energy-efficient choices you can make. This type of water heater uses both electricity and natural gas to heat your water for you. The combination may seem odd at first, but it really does work. Heat pumps are especially useful in cold climates where a solar hot water system won’t be much help. In these areas, it’s crucial that a home has an alternative source of heating so that occupants have access to hot water when they need it. Some conventional models use only electricity or only natural gas, making them less efficient than other options on our list—but many heat pump models use some combination of both gases depending on how efficiently they need to run. 

3. Electric Storage Water Heaters

These use electricity to heat water. This is less efficient than using natural gas, but costs are still low since hot water can be produced 24 hours a day. There are two types of electric storage water heaters – active tank systems, which keep hot water at a near-constant temperature all day, and passive tank systems, which hold less hot water than active tank systems but take longer to lose their heat overnight. Passive tank systems are typically cheaper to buy but more expensive to operate.

Electric Storage Water Heater Benefits

The majority of water heaters in US households are electric storage. This is due to their ease of use, cost-effectiveness, safety, and relative longevity. These units utilize an electric heating element (similar to a household dryer or oven) that boils and stores hot water as it slowly cools down. When you’re ready for hot water, you simply turn on your faucet and enjoy instant access to hot water – but because they don’t have a continuous flow of power (like tankless or solar), they require some time before they can produce more hot water once they’ve run out. 

They are also stored in tanks so they are insulated and provide optimal temperatures even after hours of not being used. If you live in a colder climate, these units allow for maximal heat conservation by not using any electricity while waiting to be used again; though keep in mind that older models need a significant amount of insulation around them to retain temperature while newer models can be installed with minimal or no insulation at all. 

4. Gas-Fired Storage Water Heaters

Storage water heaters usually have a storage tank that is either built into a closet or is placed in an attic. The benefit to these types of water heaters is that they can be connected directly to your gas supply and do not require any electrical connection (they are entirely gas-powered). The downside, however, is that you need to refill them with water every six months or so. You should also clean them about once a year.

Gas-Fired Storage Water Heater Benefits

Gas-fired water heaters are known for their fast heating times. A gas-fired tank, on average, can be heated in less than 30 minutes. 

Another benefit is that they have no limit on capacity, unlike a tankless water heater. You can add multiple water heaters to increase your hot water storage if you have an increased demand for hot water in your home or business. The best part is they’re cheaper than other types of units!

Water Heater Types - Summary


There are many different types of water heaters to choose from and each has their own benefits! We hope this article can help you decide which type of water heater you'll need for your residential or commercial property and is best for your water usage. If you are still have trouble deciding which type or how many is best for your system needs, get in contact with the Water Heater professionals at Bulldog Rooter to get started or learn more about water heaters today! 

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