Best Tankless Water Heaters for Small Homes

Living in a small home often means making compromises. Space is at a premium, and every appliance needs to pull its weight. One area where you don’t have to compromise, however, is hot water. Tankless water heaters, also known as on-demand water heaters, are a fantastic solution for small homes, offering endless hot water without the bulk of a traditional tank. But with so many options on the market, choosing the right one can feel overwhelming. This guide will walk you through the best tankless water heaters for small homes, considering factors like size, efficiency, flow rate, and budget.

Why Choose a Tankless Water Heater for a Small Home?

Before diving into specific models, let’s understand why tankless water heaters are particularly well-suited for smaller living spaces:

• Space Saving: This is the most obvious advantage. Tankless heaters are significantly smaller than traditional tank water heaters. They mount on a wall, freeing up valuable floor space. Imagine reclaiming the area where your old tank used to sit – that’s extra storage, a larger pantry, or simply more breathing room.
• Endless Hot Water: Say goodbye to cold showers! Tankless heaters heat water on demand, meaning you’ll never run out of hot water, no matter how long your showers are or how many people are showering sequentially. This is a huge benefit for families or households with multiple occupants.
• Energy Efficiency: Tankless heaters only heat water when you need it. They don’t continuously heat and reheat a large tank of water, leading to significant energy savings. While the initial cost might be higher, the long-term savings on your energy bill can make it a worthwhile investment.
• Longer Lifespan: Tankless water heaters typically last longer than traditional tank heaters, often lasting 20 years or more compared to the 10-15 year lifespan of a tank heater. This means fewer replacements and less hassle in the long run.
• Reduced Risk of Leaks and Water Damage: Because they don’t store large volumes of water, tankless heaters pose a lower risk of leaks and the associated water damage. A leaking tank can cause significant damage to your home, so this is a major advantage.

Factors to Consider When Choosing a Tankless Water Heater

Choosing the right tankless water heater requires careful consideration of several factors. Here’s a breakdown of the key aspects to keep in mind:

Flow Rate

Flow rate is the most crucial factor. It’s measured in gallons per minute (GPM) and indicates how much hot water the heater can produce at a specific temperature rise. You need to choose a heater with a flow rate that can meet your household’s peak hot water demands. Consider these questions:

• How many hot water appliances might be used simultaneously? (e.g., shower, sink, dishwasher, washing machine)
• What is the temperature of your incoming water? The colder your incoming water, the higher the temperature rise needed, and the lower the effective flow rate of the heater.
• What is the flow rate of your showerheads and faucets? Low-flow fixtures can help reduce your hot water consumption.

A typical showerhead uses around 2.5 GPM, while a faucet uses around 1-2 GPM. A dishwasher might use 1-2 GPM, and a washing machine can use 2-3 GPM. To determine the required flow rate, add up the flow rates of all the appliances you might use simultaneously and add a buffer for safety. For example, if you want to be able to run a shower (2.5 GPM) and a sink (1.5 GPM) simultaneously, you’ll need a heater with a flow rate of at least 4 GPM. However, remember to account for the temperature rise needed based on your local climate and incoming water temperature. This is often overlooked and leads to disappointment. If you live in a colder climate, you’ll need a higher GPM heater to achieve the same desired hot water temperature.

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

Pros:

• Easier Installation: Electric models are generally easier to install, requiring only an electrical connection. They don’t need venting, which can simplify the installation process.
• Lower Upfront Cost: Electric models often have a lower upfront cost than gas models.
• More Compact: Electric tankless heaters tend to be smaller and more compact than gas models.

Cons:

• Higher Operating Costs: Electricity is generally more expensive than natural gas, so electric tankless heaters can have higher operating costs.
• High Electrical Demand: Electric tankless heaters require a significant amount of electricity. You may need to upgrade your electrical panel to handle the load. This is a crucial consideration and often the biggest hurdle for homeowners considering electric tankless heaters.
• Lower Flow Rates: Electric models often have lower flow rates than gas models, especially in colder climates.

Gas Tankless Water Heaters (Natural Gas or Propane)

Pros:

• Lower Operating Costs: Natural gas is typically cheaper than electricity, so gas tankless heaters can have lower operating costs.
• Higher Flow Rates: Gas models generally offer higher flow rates than electric models, making them better suited for households with higher hot water demands.
• More Reliable in Power Outages: Many gas tankless water heaters can operate during a power outage, provided they have a battery backup for the ignition system.

Cons:

• More Complex Installation: Gas models require venting to safely exhaust combustion gases. This can make installation more complex and expensive.
• Higher Upfront Cost: Gas tankless heaters typically have a higher upfront cost than electric models.
• Larger Size: Gas models tend to be larger than electric models.

Choosing Between Electric and Gas: The best choice depends on your specific circumstances. If you have natural gas available and high hot water demands, a gas tankless heater is likely the better option. If you don’t have natural gas, have limited hot water needs, and have an adequate electrical panel, an electric tankless heater might be a good choice.

Size and Installation

Tankless water heaters are generally compact, but size can still be a factor, especially in very small homes. Consider the available wall space and ensure there’s enough room for proper ventilation and maintenance access. Installation requirements vary depending on the model and fuel type. Electric models are generally easier to install, but gas models require venting and a gas line connection. It’s often best to hire a qualified plumber or HVAC technician for installation to ensure it’s done correctly and safely.

Energy Efficiency

Look for tankless water heaters with a high Energy Factor (EF). The EF is a measure of the heater’s overall efficiency. The higher the EF, the more efficient the heater. Tankless water heaters typically have an EF of 0.80 or higher. Some models also qualify for energy efficiency rebates from your utility company or government, which can help offset the initial cost.

Budget

Tankless water heaters range in price from a few hundred dollars to several thousand dollars, depending on the fuel type, flow rate, and features. Factor in the cost of installation, which can vary depending on the complexity of the job. While the upfront cost might be higher than a traditional tank heater, remember to consider the long-term energy savings and longer lifespan. It’s often helpful to get quotes from multiple installers to compare prices.

Features

Some tankless water heaters come with additional features, such as:

• Digital Displays: These displays show the water temperature and flow rate.
• Remote Controls: These allow you to adjust the water temperature from a remote location.
• Built-in Freeze Protection: This protects the heater from damage in cold climates.
• Self-Diagnostics: These features help you troubleshoot problems with the heater.
• Wi-Fi Connectivity: Some models can be controlled via a smartphone app.

While these features can be convenient, they also add to the cost of the heater. Consider which features are important to you and choose a model that meets your needs without breaking the bank.

The Best Tankless Water Heaters for Small Homes: Our Top Picks

Now that you know what to look for, let’s explore some of the best tankless water heaters for small homes currently available on the market. We’ve considered various factors, including flow rate, efficiency, price, and customer reviews.

For Electric Tankless Water Heaters:

Rheem RTEX-13 Electric Tankless Water Heater

The Rheem RTEX-13 is a popular choice for small homes due to its compact size and relatively simple installation. It’s designed for point-of-use applications or for supplying hot water to a single bathroom. Its key features include:

• Flow Rate: Up to 3.17 GPM at a 30°F temperature rise. This is suitable for a single shower or sink.
• Voltage: 240V
• Power: 13 kW
• Energy Factor: 0.99
• Compact Design: Easy to install in tight spaces.
• Self-Modulating Power: Adjusts power consumption based on hot water demand.

Pros:

• Affordable price point.
• Easy to install.
• Compact and space-saving design.

Cons:

• Lower flow rate compared to gas models.
• May require an electrical panel upgrade.
• Not suitable for high hot water demand applications.

Who it’s best for: Individuals or couples living in small apartments or condos who primarily need hot water for a single bathroom or point-of-use application. It’s a good option for those who are comfortable with the electrical requirements and have moderate hot water needs.

Stiebel Eltron Tempra 12 Trend Electric Tankless Water Heater

The Stiebel Eltron Tempra 12 Trend is another excellent electric tankless water heater for small homes. It features advanced flow control and temperature stabilization technology. Here’s a rundown of its key characteristics:

• Flow Rate: Up to 2.0 GPM at a comfortable temperature rise (specific temperature rise varies based on incoming water temperature).
• Voltage: 240V
• Power: 12 kW
• Energy Factor: 0.93-0.96 (depending on model variations)
• Advanced Flow Control: Maintains a consistent water temperature, even when demand fluctuates.
• Self-Modulating: Adjusts power based on hot water usage.

Pros:

• Precise temperature control.
• Compact and sleek design.
• Whisper-quiet operation.

Cons:

• Relatively low flow rate, best suited for a single point of use.
• Can be more expensive than other electric models with similar flow rates.
• Requires sufficient electrical capacity.

Who it’s best for: Those who prioritize precise temperature control and quiet operation. Ideal for small apartments or condos with a need for hot water at a single point of use like a bathroom sink or a low-flow shower. It is essential to ensure the electrical system can handle the load before purchasing.

Ecosmart ECO 11 Electric Tankless Water Heater

The Ecosmart ECO 11 is a popular and efficient electric tankless water heater, often praised for its ease of use and digital temperature control. Here’s a look at its specifications:

• Flow Rate: Up to 1.8 GPM to 3 GPM depending on the incoming water temperature (check temperature rise charts for specific values).
• Voltage: 240V
• Power: 13 kW
• Energy Factor: 0.99
• Digital Temperature Control: Allows for precise temperature settings.
• Self-Modulating Technology: Adjusts power consumption based on demand.

Pros:

• Easy to install and operate.
• Precise digital temperature control.
• Energy efficient.

Cons:

• Lower flow rate, suitable for single-point use applications only in colder climates.
• Requires dedicated 60 amp breaker, potentially requiring an electrical upgrade.
• May struggle to provide hot water for multiple simultaneous uses.

Who it’s best for: Individuals or couples who need a point-of-use solution and value ease of use and precise temperature control. Ideal for supplementing an existing hot water system or providing hot water to a remote bathroom or kitchen. Electrical system compatibility is key to consider before purchase.

For Gas Tankless Water Heaters:

Rinnai RUC60iN Ultra Series Tankless Water Heater

The Rinnai RUC60iN is a compact and powerful gas tankless water heater that’s well-suited for small homes with higher hot water demands. This model is designed for indoor installation and uses natural gas. It has numerous notable features:

• Flow Rate: Up to 6.0 GPM.
• Fuel Type: Natural Gas
• Energy Factor: 0.95
• Ultra Low NOx Emissions: Environmentally friendly.
• Compact Design: Space-saving design for easy installation.
• Built-in Recirculation: Reduces wait time for hot water.

Pros:

• Higher flow rate compared to most electric models.
• Energy efficient.
• Ultra-low NOx emissions.

Cons:

• Requires venting, which can add to installation costs.
• Higher upfront cost compared to electric models.
• Requires a natural gas connection.

Who it’s best for: Small families or couples with moderate to high hot water demands who have access to natural gas. It’s a great option for homes where simultaneous hot water usage is common. It excels in situations where a consistent supply of hot water is required, eliminating cold-water sandwich effect.

Takagi T-KJr2 Indoor Tankless Water Heater

The Takagi T-KJr2 is a compact and efficient gas tankless water heater designed for smaller homes and apartments. It offers a good balance of performance and affordability. Here’s a breakdown of its key features:

• Flow Rate: Up to 6.6 GPM.
• Fuel Type: Natural Gas or Propane (convertible).
• Energy Factor: 0.81-0.83 (depending on fuel type).
• Compact Design: Space-saving and easy to install.
• Built-in Freeze Protection: Protects against damage in cold climates.
• Digital Remote Control: Included for convenient temperature adjustment.

Pros:

• High flow rate for its size.
• Convertible between natural gas and propane.
• Affordable price point for a gas tankless heater.

Cons:

• Requires venting.
• Slightly lower energy factor than some other models.
• May require professional installation.

Who it’s best for: Small families or individuals who need a reliable and affordable gas tankless water heater. It’s suitable for homes with limited space and can be converted to propane if natural gas is not available. The inclusion of a digital remote control enhances user convenience.

Noritz NRC66DV Condensing Tankless Water Heater

The Noritz NRC66DV is a condensing tankless water heater that offers high efficiency and reliable performance. It is designed for indoor installation and utilizes natural gas. Its features include:

• Flow Rate: Up to 6.6 GPM.
• Fuel Type: Natural Gas
• Energy Factor: 0.92
• Condensing Technology: Maximizes energy efficiency.
• Compact Design: Suitable for small spaces.
• Built-in Freeze Protection: Prevents damage from freezing.

Pros:

• High energy efficiency.
• Consistent hot water supply.
• Reliable brand reputation.

Cons:

• Higher initial cost than non-condensing models.
• Requires a drain for condensate.
• Professional installation recommended.

Who it’s best for: Homeowners who prioritize energy efficiency and are willing to invest in a higher-quality unit. Suitable for small to medium-sized homes with moderate hot water demands. Condensing technology translates to lower utility bills over the long term, making it a cost-effective choice despite the higher initial price.

Installation Considerations

Regardless of the tankless water heater you choose, proper installation is crucial for optimal performance and safety. Here are some key considerations:

• Professional Installation: While some homeowners may be tempted to DIY the installation, it’s generally best to hire a qualified plumber or HVAC technician. Gas tankless heaters require venting and gas line connections, which can be dangerous if not done properly. Electric tankless heaters require significant electrical capacity and may necessitate an electrical panel upgrade.
• Venting (Gas Models): Gas tankless heaters require proper venting to safely exhaust combustion gases. The venting system must meet local codes and regulations.
• Gas Line Sizing (Gas Models): The gas line must be properly sized to provide adequate gas flow to the heater. An undersized gas line can result in reduced performance.
• Electrical Requirements (Electric Models): Ensure your electrical panel has enough capacity to handle the heater’s electrical load. You may need to upgrade your electrical panel.
• Water Line Connections: Ensure the water line connections are properly made to prevent leaks.
• Location: Choose a location that is easily accessible for maintenance and repairs. Ensure there is enough space around the heater for proper ventilation.
• Local Codes and Regulations: Always check local codes and regulations before installing a tankless water heater.

Maintenance Tips

To ensure your tankless water heater operates efficiently and reliably for years to come, regular maintenance is essential. Here are some maintenance tips:

• Descaling: Over time, mineral deposits can build up inside the heater, reducing its efficiency. Descale the heater annually, or more frequently if you have hard water. You can purchase descaling kits specifically designed for tankless water heaters.
• Check Venting (Gas Models): Inspect the venting system regularly for any blockages or leaks.
• Inspect Gas Line (Gas Models): Have a qualified technician inspect the gas line annually for any leaks.
• Clean Air Filter (If Applicable): Some tankless water heaters have air filters that need to be cleaned regularly.
• Check for Leaks: Regularly inspect the heater and water line connections for any leaks.
• Follow Manufacturer’s Recommendations: Always follow the manufacturer’s recommendations for maintenance and service.

Conclusion

Tankless water heaters offer a compelling solution for small homes, providing endless hot water, saving space, and improving energy efficiency. By carefully considering factors like flow rate, fuel type, size, budget, and features, you can choose the right tankless water heater for your needs. Remember to factor in the cost of installation and ongoing maintenance. Our top picks include the Rheem RTEX-13 and Stiebel Eltron Tempra 12 Trend for electric models, and the Rinnai RUC60iN, Takagi T-KJr2 and Noritz NRC66DV for gas models. Investing in a tankless water heater can significantly enhance your comfort and convenience while saving you money in the long run.