Best Tankless Water Heaters for Small Homes

Living in a smaller home often means making smart choices about space and energy efficiency. One area where you can significantly improve both is with your water heating system. Tankless water heaters, also known as on-demand water heaters, are a fantastic option for smaller dwellings because they heat water only when you need it, eliminating the need for a bulky storage tank. This not only saves space but also reduces energy waste. But with so many options available, how do you choose the best tankless water heater for your small home? This comprehensive guide will walk you through the top models, important factors to consider, and installation tips to help you make an informed decision.

Why Choose a Tankless Water Heater for a Small Home?

Before we dive into specific models, let’s explore the key advantages of tankless water heaters in a small home setting.

Space Saving

The most obvious benefit is the space savings. Traditional water heaters can take up a significant amount of room, often in a closet or utility area. Tankless models, on the other hand, are much smaller and can be mounted on a wall, freeing up valuable floor space. This is especially crucial in smaller homes where every square foot counts.

Energy Efficiency

Tankless water heaters are significantly more energy-efficient than traditional tank heaters. They only heat water when you turn on a faucet or appliance. This eliminates the standby heat loss that occurs with tank heaters, where water is constantly being heated and reheated, even when you’re not using it. This can lead to substantial savings on your energy bills over time. Studies show that tankless water heaters can be up to 34% more energy efficient than storage tank water heaters for homes that use 41 gallons or less of hot water per day. Even larger households that use up to 86 gallons per day can still achieve energy savings of 8-14%.

Unlimited Hot Water (Potentially)

While not always “unlimited” in the strictest sense, tankless water heaters can provide a continuous supply of hot water as long as they are properly sized for your household’s needs. You won’t have to worry about running out of hot water in the middle of a shower or while doing laundry. However, it’s crucial to choose a model with a sufficient flow rate to meet your peak demand.

Longer Lifespan

Tankless water heaters typically have a longer lifespan than traditional tank heaters. While a tank heater might last 10-15 years, a tankless model can last 20 years or more with proper maintenance. This means you’ll be less likely to face costly replacements in the long run.

Reduced Risk of Water Damage

Because tankless water heaters don’t store a large volume of water, there’s a reduced risk of water damage in the event of a leak. A traditional tank heater can release a significant amount of water if the tank ruptures, leading to costly repairs. While tankless heaters can still leak, the amount of water involved is typically much smaller.

Factors to Consider When Choosing a Tankless Water Heater

Selecting the right tankless water heater for your small home involves careful consideration of several factors. Here’s a breakdown of the key aspects to keep in mind:

Flow Rate

Flow rate is arguably the most important factor. It refers to the amount of hot water the heater can produce per minute, measured in gallons per minute (GPM). You need to choose a model with a sufficient flow rate to meet your household’s peak demand. To determine your peak demand, consider the number of hot water appliances and fixtures you typically use simultaneously. For example:

• Shower: 2.5 GPM
• Faucet: 1.5 GPM
• Dishwasher: 1-2 GPM
• Washing Machine: 2-3 GPM

Add up the flow rates of all the appliances and fixtures you’re likely to use at the same time. For instance, if you typically take a shower while someone else is washing dishes (2.5 GPM + 1.5 GPM = 4 GPM), you’ll need a tankless water heater that can deliver at least 4 GPM. It’s always better to overestimate your flow rate needs to ensure you have enough hot water.

Fuel Type: Electric vs. Gas

Tankless water heaters come in two main types: electric and gas. Each has its own advantages and disadvantages.

Electric Tankless Water Heaters

Electric models are generally easier to install, as they don’t require venting. They are also more energy-efficient than gas models, but they may require significant electrical upgrades to your home’s wiring. This can be a major expense, especially if you need to upgrade your electrical panel.

Pros of Electric Tankless Water Heaters:

• Easier installation (no venting required)
• Higher energy efficiency
• Lower initial cost (typically)
• Smaller size

Cons of Electric Tankless Water Heaters:

• May require electrical upgrades
• Can be expensive to operate if electricity rates are high
• Limited flow rate compared to gas models

Gas Tankless Water Heaters

Gas models are more powerful and can deliver a higher flow rate than electric models. They are also generally less expensive to operate, especially if natural gas is readily available in your area. However, gas models require venting, which can add to the installation cost and complexity. They also require a gas line connection.

Pros of Gas Tankless Water Heaters:

• Higher flow rate
• Lower operating costs (typically)
• Better for larger households

Cons of Gas Tankless Water Heaters:

• More complex installation (venting required)
• Higher initial cost (typically)
• Requires a gas line connection

Size and Installation

Tankless water heaters are compact, but you still need to consider their size and installation requirements. Measure the available space in your home and make sure the model you choose will fit comfortably. Also, consider the location of the water heater. It should be easily accessible for maintenance and repairs. Gas models require venting to the outside, so you’ll need to factor in the location of existing vents or the cost of installing new ones. Electric models need to be close to the main electrical panel, and it’s essential that the electrical wiring is adequate to handle the unit’s power requirements. Improper installation can lead to safety hazards and void the warranty, so it’s generally best to hire a qualified plumber or electrician to handle the installation.

Budget

Tankless water heaters can range in price from a few hundred dollars to several thousand dollars. Set a budget before you start shopping and stick to it. Remember to factor in not only the cost of the unit itself but also the cost of installation, including any necessary electrical or plumbing upgrades. While it may be tempting to choose the cheapest model available, it’s important to consider the long-term costs, such as energy savings and lifespan. Investing in a higher-quality model may save you money in the long run.

Energy Efficiency and Rebates

Look for models with a high Energy Factor (EF). The EF is a measure of the water heater’s overall energy efficiency. The higher the EF, the more energy-efficient the unit is. Also, check for any available rebates or incentives from your local utility company or government. Many utility companies offer rebates for installing energy-efficient appliances, which can help offset the initial cost of the water heater.

Warranty

A good warranty can provide peace of mind and protect you from unexpected repair costs. Look for models with a long warranty period, especially on the heat exchanger, which is the most expensive component to replace. Read the warranty carefully to understand what is covered and what is not. Be sure to register your water heater after installation to ensure that your warranty is valid.

Hard Water Considerations

If you have hard water, which contains high levels of minerals like calcium and magnesium, it can cause scale buildup inside the tankless water heater. This can reduce its efficiency and lifespan. Consider installing a water softener to protect your water heater from hard water damage. Some tankless water heater models are also specifically designed to withstand hard water conditions. Regular flushing of the system can also help to prevent scale buildup.

Top Tankless Water Heaters for Small Homes (Reviews)

Now, let’s take a look at some of the best tankless water heaters for small homes, based on the factors we’ve discussed.

Rheem RTEX-13 Electric Tankless Water Heater

The Rheem RTEX-13 is a popular choice for small homes due to its compact size and ease of installation. This electric tankless water heater is ideal for point-of-use applications or for supplying hot water to a small apartment or condo. It features self-modulating power control, which adjusts the energy input based on the demand for hot water, maximizing energy efficiency.

Key Features:

• Digital temperature display
• Self-modulating power control
• Simple installation
• Compact design
• Suitable for point-of-use applications

Pros:

• Easy to install
• Energy-efficient
• Compact and space-saving
• Precise temperature control

Cons:

• Limited flow rate (suitable for 1-2 fixtures at a time)
• May require electrical upgrades

Ideal For:

Small apartments, condos, or point-of-use applications such as a single bathroom or kitchen sink.

EcoSmart ECO 11 Electric Tankless Water Heater

The EcoSmart ECO 11 is another excellent option for small homes. It’s designed to provide on-demand hot water for a single point of use, such as a bathroom sink or shower. It features patented self-modulating technology, which automatically adjusts the power consumption based on the hot water demand, resulting in energy savings. The ECO 11 is known for its ease of installation and compact design.

Key Features:

• Patented self-modulating technology
• Digital temperature control
• Compact design
• Easy to install

Pros:

• Energy-efficient
• Easy to install
• Space-saving
• Precise temperature control

Cons:

• Limited flow rate (suitable for one fixture at a time)
• May require electrical upgrades

Ideal For:

Single-person households, small apartments, or point-of-use applications like a bathroom sink or shower.

Takagi T-KJr2 Indoor Tankless Water Heater

The Takagi T-KJr2 is a gas-powered tankless water heater that offers a higher flow rate than electric models, making it suitable for small homes with multiple hot water demands. It’s designed for indoor installation and requires venting. The T-KJr2 features a compact design and is known for its reliability and performance.

Key Features:

• High flow rate (up to 6.6 GPM)
• Indoor installation
• Compact design
• Digital remote control

Pros:

• High flow rate for multiple fixtures
• Reliable performance
• Suitable for small to medium-sized homes

Cons:

• Requires venting
• More complex installation than electric models
• Higher initial cost

Ideal For:

Small to medium-sized homes with moderate hot water demands, such as simultaneous showers and dishwashing.

Rinnai V65iN Indoor Tankless Water Heater

The Rinnai V65iN is a popular gas tankless water heater known for its reliability and efficiency. It is designed for indoor installation and provides a consistent supply of hot water on demand. With a flow rate of up to 6.5 GPM, it is suitable for smaller homes with moderate hot water needs. The V65iN features advanced temperature controls and safety features.

Key Features:

• Indoor installation
• 6.5 GPM maximum flow rate
• Energy Star certified
• Digital temperature control
• Safety features like overheat protection

Pros:

• Reliable and efficient
• Consistent hot water supply
• Suitable for smaller homes

Cons:

• Requires professional installation
• Higher initial cost compared to electric models
• Needs venting to the outside

Ideal For:

Small homes or apartments needing a reliable and efficient gas tankless water heater solution.

Noritz NRC66DVNG Indoor Condensing Tankless Water Heater

The Noritz NRC66DVNG is a high-efficiency condensing gas tankless water heater designed for indoor installation. Its condensing technology allows it to achieve higher energy efficiency compared to non-condensing models. With a flow rate of up to 6.6 GPM, it’s suitable for smaller homes with moderate hot water demands. It also features advanced temperature controls and diagnostics.

Key Features:

• Condensing technology for high efficiency
• Indoor installation
• 6.6 GPM maximum flow rate
• Digital display with error code diagnostics
• Remote control included

Pros:

• Extremely energy-efficient
• Suitable for smaller homes with moderate usage
• Advanced features and diagnostics

Cons:

• Higher initial cost
• More complex installation requiring professional expertise
• Requires venting

Ideal For:

Homeowners looking for the highest energy efficiency in a gas tankless water heater for their smaller home.

Stiebel Eltron Tempra 12 Plus Electric Tankless Water Heater

The Stiebel Eltron Tempra 12 Plus is an electric tankless water heater designed for whole-house applications in smaller homes. It features advanced flow control technology that ensures a consistent water temperature, even with fluctuating water pressure. This model is known for its reliable performance and user-friendly interface.

Key Features:

• Advanced flow control technology
• Electronic temperature control
• Suitable for whole-house applications in smaller homes
• Self-modulating power

Pros:

• Consistent water temperature
• Reliable performance
• User-friendly interface

Cons:

• May require significant electrical upgrades
• Lower flow rate compared to gas models

Ideal For:

Smaller homes where electrical infrastructure can support the high power demand of electric tankless heaters, offering consistent temperature delivery.

Installation Tips for Tankless Water Heaters

Proper installation is crucial for the performance and longevity of your tankless water heater. Here are some essential tips to keep in mind:

Hire a Qualified Professional

Unless you have extensive plumbing and electrical experience, it’s best to hire a qualified plumber or electrician to install your tankless water heater. This will ensure that the installation is done correctly and safely, and that the unit meets all local codes and regulations. Improper installation can void the warranty and lead to safety hazards.

Follow Manufacturer’s Instructions

Always follow the manufacturer’s instructions carefully. The installation manual will provide detailed guidance on how to install the water heater properly. Pay close attention to the venting requirements for gas models and the electrical requirements for electric models.

Ensure Adequate Venting (for Gas Models)

Gas tankless water heaters require proper venting to exhaust combustion gases safely. The venting system must be installed correctly to prevent carbon monoxide poisoning. Use the correct type of venting material as specified by the manufacturer and ensure that the venting system is properly sealed.

Check Electrical Requirements (for Electric Models)

Electric tankless water heaters require a dedicated electrical circuit with the correct voltage and amperage. Consult with an electrician to determine if your home’s electrical system can handle the load. You may need to upgrade your electrical panel to accommodate the new water heater.

Flush the System

After installation, flush the system to remove any debris or sediment that may have accumulated during the installation process. This will help to prevent clogs and ensure optimal performance.

Register Your Warranty

Don’t forget to register your water heater with the manufacturer to activate your warranty. This will protect you from unexpected repair costs in the future.

Regular Maintenance

Perform regular maintenance on your tankless water heater to keep it running smoothly. This includes flushing the system to remove mineral buildup and inspecting the venting system (for gas models) for any signs of damage or leaks. Consult your owner’s manual for specific maintenance recommendations.

Troubleshooting Common Tankless Water Heater Problems

Even with proper installation and maintenance, you may encounter some common problems with your tankless water heater. Here are some troubleshooting tips:

No Hot Water

If you’re not getting any hot water, check the power supply (for electric models) or the gas supply (for gas models). Make sure the circuit breaker hasn’t tripped or the gas valve is open. Also, check the temperature settings on the water heater.

Insufficient Hot Water

If you’re getting some hot water but not enough, the flow rate may be too high. Try reducing the flow rate by turning down the faucet or using fewer hot water appliances at the same time. Also, check the temperature settings on the water heater. If you live in a colder climate, the incoming water temperature may be too low, which can reduce the flow rate of the water heater. You may need to adjust the temperature settings or consider a model with a higher flow rate.

Cold Water Sandwich

A “cold water sandwich” occurs when you get a brief burst of cold water between periods of hot water. This can be caused by the water heater cycling on and off. Some models have features to minimize this effect. Ensuring the unit is sized correctly can also help prevent this.

Error Codes

If your water heater displays an error code, consult the owner’s manual to identify the problem and potential solutions. Some error codes may indicate a minor issue that you can resolve yourself, while others may require professional assistance.

Limescale Buildup

If you have hard water, limescale can build up inside the water heater, reducing its efficiency and lifespan. Flush the system regularly with a descaling solution to remove limescale buildup. Consider installing a water softener to prevent limescale buildup in the first place.

Pilot Light Issues (for Gas Models)

If your gas tankless water heater has a pilot light, it may go out occasionally. Try relighting the pilot light according to the manufacturer’s instructions. If the pilot light continues to go out, there may be a problem with the gas supply or the thermocouple. Consult with a qualified technician to diagnose and repair the problem.

Making the Final Decision

Choosing the best tankless water heater for your small home requires careful consideration of your hot water needs, budget, and installation requirements. By understanding the key factors discussed in this guide, you can make an informed decision and select a model that will provide reliable and efficient hot water for years to come. Remember to prioritize safety and hire a qualified professional for installation. With the right tankless water heater, you can enjoy the benefits of space savings, energy efficiency, and potentially endless hot water.