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Should You Consider Tankless Water Heaters? Pros and Cons with Reviews of the Top Brands

It is a fact that unless you live in a tropical hot country you do need hot water within your dwelling. At present, the most people way to get all the hot water you need is by using a heating system with a tank that stores the water. Before we get to some of the best electric tankless water heaters one can buy online, let’s clearly define what this product does.

What is a Tankless Water Heater?

The advantage of a tankless water heater is that you can get all the hot water you need without the need for a storage tank. How does a tankless water tank work? The science behind it is a little complicated but when you turn on your hot water cold water instantly travels to the unit where it is heated. Most efficient tankless water heaters are designed to work using gas or electricity.

The use of tankless hot water heater brands started in Europe and within the last decade American home builders are starting to understand the multitudes of tankless water heater energy savings, some derived from generous government subsidies. You might be wondering why the government would support the purchase of water heaters without the use of tanks, simply because they’re more efficient and does not contribute to energy waste.

Best tankless water heater AA555567

How to Choose the Right Tankless Water Heater

Selecting the right the right and highest rated tankless water heater for your home requires some due diligence on your part. While you can install one in your home or office there are few factors to consider to make sure you’re getting the best tankless hot water heater natural gas that can get the job done right.

Here are the following factors to take into consideration before investing in the best tankless water heater:

Size of Your Home and Number of Occupants

Tankless water heaters can be bought in different sizes, and it is the size that determines the volume of instantaneous hot water that can be created. One that works great for a small law firm might not be ideal for a home with a large family. It is better to have a unit that can produce instant hot water more than you currently need.

Households do grow and it would be prudent to invest in a tankless water heater that can service that growth of more occupants. Since this is not a water heating product that can be installed by anyone it is better to seek the opinion of a professional plumber or installer to guarantee you’re purchasing the right sized unit.

Should You Go With One Using Gas or Electricity?

With so many top tankless water heaters in the marketplace, you’ll have to decide how you want the unit to be powered. From the other best tankless water heater reviews we looked at online there are advantages and disadvantages to choosing a tankless water heater using gas or electricity. Depending on your location, the cost of gas utility might be cheaper than electric depending on the generating plant of your utility provider.

It is also true that large dwellings with multiple units are better off with a tankless water heater that is powered by natural gas. This might not even be open for debate or choosing, as some of the larger units only use gas. Gas powered tankless water heaters are not only more powerful but also more efficient.

Determine the Maximum Gallons per Minute

The GPM capacity of the unit is the most influential factor when it comes to the production of hot water on a timely basis. Each unit would give you the estimated hot water production per minute. This is why it is essential you get a unit that can produce more hot water per minute than your current needs, which means future growth of more occupants will not be a problem.

Other Factors

Unless you’re skilled at doing it yourself plumbing projects, the unit you buy will require professional installation. The units found in this tankless hot water heater reviews can be purchased with professional installation, which takes the hassle of searching for a professional plumber on your own. Do also keep in mind that poorly installed units will create problems and might make the product warranty invalid.

It certainly would be cool to have a feature you can use to increase or decrease the temperature of the hot water created. For hot water heaters with no tank using gas it is paramount you navigate towards units with durable safety guards.

Since tankless water heaters are not cheap it is better to get a unit with a longer warranty term from a reputable manufacturer. Apart from the best tankless water heaters found reviewed in this article, do take some time to read the feedbacks provided by some of the current customers.

Checking out reviews provided by customers of your favorite tankless water heater is one of the best ways to ensure you do not purchase a poorly designed unit. The tankless hot water heaters prices should not be allowed to be the determining factor.

Do not let the cost of a tankless water heater prevent you from investing in a unit that can get the job done right. You should look at the selection process as an investment, meaning you want a unit that is from a reputable manufacturer with clearly established years of service that can be tracked.

Pros and Cons of Using a Tankless Water Heater

While there are many advantages of using a tankless water heater, you should also examine the disadvantages listed in this review article. Going tankless in your hot water needs should not be done lightly, for you need to weigh the benefits and drawbacks based on your needs.

Advantages of Using a Tankless Water Heater

The Efficiency of a Tankless Water Heater

One of the tankless water heater advantages can be linked to the efficiency of the unit. You cannot talk about the advantages of tankless water heater system without mentioning that it helps to prevent energy waste. A good unit guarantees you do not need to store hot water in a tank with all the waste associated with that type of hot water heating setup.

If you choose the right unit, you’ll have at your command all the hot water you need at the moment you need it. With the rapid advancement in “on demand” technology tankless water heaters as just as efficient as the ones using storage tanks but minus the loss of energy, which translates to lower utility cost. It is also true that some of the top rated tankless water heaters come with a federal rebate, which ultimately leads to lower purchasing cost.

Can be More Convenient

If you have minimal space, a tankless water heater will present the best option for having all the hot water you need. I have seen tankless water heaters that can fit into your average medicine cabinet, and even the high gas powered tankless water heaters will still take up less space as compared to the ones using storage tanks. Do not forget that the members of your household do not have to wait for the storage tank to fill up since the unit is designed to supply an endless supply of hot water base on the gallons per minute criteria.

Known to be Durable

With all the instantaneous water heaters features reviewed from many studies conducted by different agencies, this is one of the best setups one can install to meet immediate hot water needs with minor accidents. As a homeowner, you do not have to worry about flooding, which is common with water heaters using storage tanks. On the average, tankless water heaters can last 20 years or more with the right care.

You Cannot Beat the Eco-Friendly Design

If you care about mother earth then the eco-friendly design of tankless water heaters should appeal to your good heart to help sustain the environment. Not only does each unit use less energy, the absence of energy waste should make any environmentalist smile. The right amount of hot water is created just as you need it.

The issues of rust and scale common with water heaters using storage tanks are negated, which means the hot water you get is not only fresh but probably the cleanest one can use to bathe and cook safely.

Other Benefits of Using Tankless Water Heaters

Some of the top rated tankless water heaters have federal and state sponsored rebates to help reduce the cost of purchasing and installing the unit.

With the right sized tankless water unit in your home, you’ll never run out of hot water.

Since there is no storage tank you do not have to worry about heat loss, which ultimately leads to lower utility cost.

They come in many different sizes, and there are many durable units for even tiny spaces and outdoor needs.

Disadvantages of Using a Tankless Water Heater

Despite all the accolades attributed to tankless water heaters, there are few cons worth mentioning, to be honest with you.

Even the lowest priced tankless water heater can cost more than a highly rated water heater using a storage tank setup. A unit that can deliver the right amount of hot water just the moment you need it is not cheap and one must look at it as an investment for the purchase of one to make sense.

If you buy one that is designed to use natural gas, you might have to expand your gas supply line to accommodate the unit especially if you have a large office or home.

Even the models using electricity might require you update your circuit breakers to supply the required power for the unit to work flawlessly.

While tankless water heaters using electric are known to produce no greenhouse gasses, the reverse is the truth for tankless water heaters using natural gas.

You might experience a few seconds of lag time before your water becomes hot enough to your satisfaction, which ultimately might lead to increased water usage and cost.

What is the Best Tankless Water Heater?

When you look at other tankless hot water heater reviews of some of the top brands, you might get confusing claims about which one to buy. Keep in mind you want a tankless hot water unit with durability and large enough to satisfy your household hot water needs without any delays.

After an exhaustive research, we found the seven best tankless water heaters with high-performance metrics. Our selection process involved combing through government and industry supported studies with careful analysis of the pros and cons of each unit reviewed.

We do advise you consider getting professional installation with the ultimate unit you select. Clicking the images of the tankless water heaters would take you to the product page where you can also to include professional installation with your purchase.

Before making our final selection we looked at the feedbacks from existing customers of each tankless water heater found in this review.

Tankless Water Heaters Reviews

We divided the reviews of the best water heaters that does not use storage tanks into those that use electricity and the ones designed to function with natural gas.

Best Natural Gas Tankless Water Heater

If you have a large dwelling you might have to ignore all the noises about tankless gas water heater prices if you want a unit that can deliver all the hot water needed in your household with no lag time.

1 – Takagi T-KJr2-IN-NG Indoor Tankless Water Heater Review

Takagi T-KJr2-IN-NG Indoor Tankless Water Heater Review AA5000987

The first best natural gas tankless water heater is from a company called Takagi This tankless gas hot water heater is capable of producing over 6 gallons of hot water every minute.


It is designed to accept 140,000 BTU gas inputs and quite capable of delivering on demand hot water needs for two residential bathrooms.

This best gas tankless water heater from Takagi will turn itself off if it detects overheating.

A frost guard is included for the unit to function flawlessly in colder climates.

From the latest Takagi t-kjr2-in-ng review from the manufacturer, you also get a remote control plus a power cord with your purchase.

Other notable safety features included in this unit are; latest in surge protection technology and self-diagnostic codes you can use to troubleshoot any problems with the tankless heater from Takagi.

You do not have to worry about the ultra-Low NOx regulations as the unit is designed to comply with all of them.


You’re required to vent the unit only using category III stainless steel, which means you’ll be needing the services of a professional plumber or HVAC expert. Also, the limited warranty provided by the manufacturer is only valid if the Takagi t-kjr2-in-ng tankless water is installed by a licensed professional.

Bottom Line:

The dimensions for the Takagi t-kjr2-in-lp comes in at 6.7 x 13.8 x 20.3 inches and it weighs less than 20 pounds. The heat exchanger feature is guaranteed for 10 years, and major parts only 5 years. The warranty is almost cut in half if it is installed in a commercial establishment, and the installation must be done by a licensed technician.

The majority of the current owners of the Takagi t-kjr2 are happy with the unit based on the feedbacks found on Amazon.

2 – Rinnai RL75iN Natural Gas Tankless Water Heater Review

Rinnai RL75iN Natural Gas Tankless Water Heater Review

This unit is larger than the one reviewed above simply because it is can produce more on demand hot water per minute, 7.5 gallons to be exact. Based on the manufacturer specs, the BTU output can range from as high as 180,000 to 10,300.


This is one of the few gas powered tankless water heaters that can be converted to propane.

Apart from delivering sufficient water temperature to your household, it is also energy certified with all the benefits that come with such certification.

Modern technology is carefully embedded into this unit with monitoring sensors and digital controls to help take all the guesswork out of routine maintenance steps.

Apart from the scale detection feature the inclusion of a temperature lock guarantees no one else can tamper with the unit, which ultimately leads to a longer lifespan.


Your warranty becomes invalid if not professionally installed, which is not friendly to a do it yourself enthusiast.

Bottom Line:

The Rinnai rl75in natural gas tankless water heater comes with a twelve years warranty of the heat exchanger with five years on parts and only one year on the labor needs.

It has the following dimensions 14 x 9.3 x 23 inches and weighs about 45 pounds. There are strict maintenance schedules that must be adhered to if you want to preserve the functionality of the unit and increase the lifespan.

3 – Rheem RTG-64XLN Tankless Natural Gas Water heater Review

Rheem RTG-64XLN Tankless Natural Gas Water heater Review

The Rheem RTG-64XLN tankless heater can deliver up to .8 gallons of hot water every minute based on your specs. Examination of other Rheem water heater reviews found online confirms model RTG-64XLN is just as durable as the other brands reviewed above.


The condensing heat exchanger found in this unit is made from stainless steel, which makes it more energy efficient.

The efficiency rating is increased due to the presence of intelligent electronic controls, which contributes to better safety.

This top rated tankless water heater from Rheem is durable and well designed to qualify for federal tax credit.

It has an onboard self-diagnostic system that makes installation and service as easy as can be.

The included digital display technology puts temperature settings and maintenance codes right at your fingertips.

It is designed to emit very low emissions, which is one of the reasons the tankless water heater qualifies for the federal tax credit rebate program.

If is it installed in an outdoor location it is capable of functioning in temperature as low as minus 30°F degrees.


To ensure the validity of the warranty terms the unit must be installed by a qualified licensed professional plumber or HVAC expert. It is not the best of warranty terms for a handy homeowner looking to do the installation project personally. Also, we discovered conflicting warranty terms on different websites selling the Rheem RTG-64XLN.

Bottom Line:

We did not get any response as to the issue of conflicting warranty terms found on different websites. The most generous term we found is 12 years for the heat exchanger, five years for parts, and only one year for labor. The unit is reasonably priced and might be the ideal unit to solve all the hot water needs of your household.

Best Electric Tankless Water Heater

Lately, the massive improvement in design specs for best electric tankless water heaters makes them ideal for handling hot water needs in even large dwellings. It was also surprising to discover that tankless water heaters using electric came with better warranty terms.

4 – EcoSmart ECO 11 Electric Tankless Water Heater Review

EcoSmart ECO 11 Electric Tankless Water Heater Review AA5000987

EcoSmart is a major player in the whole house electric tankless water heater market. This unit is ideal for a small apartment based on your location. The sizing guide included with the unit will give you ample guidance as to the appropriate reliability of the unit for your needs. It has 6.5 x 13.5 x 10 inches dimensions and weighs only 6.5 pounds. It is capable of delivering up to two gallons of hot water per minute.


This electric tankless water heater uses smart technology and can be used flawlessly in areas where the water temperature coming out of the pipe is at least 67°F and above. It can also be used in colder climates, but the flow rate of the hot water might be negatively affected.

It is capable of saving you at least 50% of your heating cost.

The included self-modulating technology can calculate your hot water needs based on your past usage.

This electric tankless water heater comes in a compact size and can fit into tiny spaces not even conducive for a water heater using storage tank setup.

Within the tankless heater are stainless and copper components, which contributes to better durability and efficiency.

This on-demand electric water heater from EcoSmart comes with a lifetime warranty on all the major parts.


This might not be the right tankless water unit for those in very cold climatic conditions. Some of the current users complained the temperature of the hot water delivered varies widely.

Bottom Line:

You have to calculate carefully what your hot water needs are before investing in this unit that uses electricity. This unit would function better if you reside in a warmer climate where the incoming water is not that cold to begin with. Be advised, that the lifetime warranty does not cover the cost of labor or poor installation damages.