Best Tankless Water Heater in 2023 – Tankless Water Heater Reviews and Ratings

Best Tankless Water Heater in 2023 – Tankless Water Heater Reviews and Ratings
We spent over 14 days researching and testing 10 different brands of tankless water heaters and found that ease of installation, performance, and efficiency were most important. The Takagi Tankless Water Heater scored high marks in all categories and is our top pick. The features this tankless water heater has helps home owners save money while heating their water efficiently. This space saving water heater saves as much as 12 cubic feet of space by changing from a regular water heater to the tankless variety. It is a great way to reduce water heating costs by as much as 50%.
Tankless Water Heater Review

1. Takagi

Best Overall Tankless Water Heater

5/5 Product Rating
The Takagi T-KJr2-IN-NG Indoor Tankless Water Heater is a top pick because it is one of the most efficient units that run on natural gas. The unit is compact and runs efficiently providing you both space and economic savings. The Takagi T-KJr2-IN-NG is able to accommodate a water flow of up to 6.6 gallons per minute, which is enough to cover the needs of the average home and can work in both cold and warm weather climates. The unit produces 140,000 BUTs and can be installed indoors as long as it is properly ventilated. Stainless steel ventilation is recommended as the best protection. The temperature control maintains a constant temperature throughout use without creating any hot spots or cold spots. The Takagi T-KJr2-IN-NG Indoor Tankless Water Heater features an automatic turn off if the unit overheats protecting both your home and the unit from damage. It is a compact design, can be mounted on the wall and only weighs 19.4 pounds. The entire unit is only 6.7X13.8X20.3 inches in size. It is made is Japan and offers a 10 year warranty with coverage for 5 year for parts, as long as the unit is installed by a licensed contractor.

Sarah Lytle

2. Stiebel Eltron

Best Overall Tankless Water Heater – Runner Up

4.7/5 Product Rating
The Stiebel Eltron Tempra 24 Plus Electric Tankless Whole House Water Heater is a top pick because it is one of the best quality units on the market. It has a large enough capacity to accommodate the needs of an entire home without ever running out of water. The Stiebel Eltron Tempra 24 features a digital thermostat, does not require venting even if it is installed indoors. This can be a significant savings when considering installation costs. The unit is expected to save an estimated 15 to 20% off the hot water portion of the electric bill. The Stiebel Eltron Tempra 24 has had a complete redesign to make it more efficient and cost effective to operate. It has one of the highest flow rates in its class with the ability to accommodate up to 8 gallons per minute (GPM). It has a sophisticated temperature control that allows you to set it exactly where you need for your comfort level. The unit features an automatic advanced flow control which prevents to presence of cold spots.

The Stiebel Eltron Tempra 24 Plus includes improved electronics and a single flow sensor. It has a hinged cover which provides easy access to the unit. It has a similar flow rate to gas units without the higher price and offers an easier installation process than gas units. The lack of required venting can substantially reduce installation costs and increases the number of locations you can place the unit.

Electrical requirements include 240 volts and 24 Amps with 2 60 watt double pole Amps in the circuit breaker are recommended, with a 2X6 wire size. The unit is built in Germany and requires 150 PSI. The unit is very compact and is only 16.5X14.5X4.5 in size and only weighs 15 pounds. The warranty is valid for three years as long as the unit is installed by a licensed professional.

Sarah Lytle

3. Ecosmart

Best Budget Tankless Water Heater

4.4/5 Product Rating
The Ecosmart ECO 27 Tankless Water Heater is the top pick because it offers all of the key features customer requires to save money and heat their water efficiently. The Ecosmart ECO 27 will save up to 12 cubic feet of space in the conversion from a traditional water heater to this space saving unit which can be mounted on the wall. It also may reduce water heating costs by as much as 50%. It features the most advanced technology available and includes a patented design to modulate the water temperature so that it is exactly the temperature you need, when you need it. These wall mounted units save money due to the reduced amount of water heated, they save space, and are good for the environment. The Eco 27 offers the highest amount of water flow in the Ecosmart line and can handle a flow rate of up to 6 gallons per minute. Which is enough hot water for the average home. The temperatures may be adjusted in 1 degree increments allowing you to set it to your exact preferences. Even in northern climates where ground temperatures can be as low as 37 degrees, the flow rate will still be 3 gallons per minute. This is fast enough and large enough to provide two showers at the same time or running the dishwasher and the washing machine simultaneously. In southern climate is can handle up to four showers at the same time and is strong enough to maintain Jacuzzi tubs or other higher demand applications.

Electrical requirements for the Ecosmart ECO 27 include three 40 AMP double pole breakers and an electrical panel that can accommodate 200 Amps. The unit only weighs 16.8 pounds and is only 17X17X3.5 inches in size. It comes with a lifetime warranty which covers the cost of the unit but not installation or labor.

Sarah Lytle


Tankless Water Heater Buying Guide

Best Tankless Water Heater Buying Guide

What is a Tankless Water Heater?

When looking for a tankless hot water heater there are a number of factors which will determine which is the best tankless hot water heater for your needs.

Tankless Water Heater1How much water do you use simultaneously? Family size and the number of appliances you run or showers you take at the same time will determine what load you require. Smaller families who only use one shower at a time and do not run the washing machine and dishwasher at the same time will not need as large of a unit as one who have multiple people getting ready for work and school at the same time. Consider your maximum capacity when deciding what size unit, you need for your home. Jacuzzis, hot tubs and other appliances may have heavier load requirements. It may be economical to get a dedicated unit for higher need applications.

What temperature do you need? Tankless water heaters are based on the increase in temperature that is required over your demand or flow rate. Knowing the temperature of your ground water can help you determine this. For example, if you need to raise the temperature by 70 degrees with a flow of 6 gallons per minute (GPM) then you need a water heater that can accommodate that demand.

How much do you want to invest? Systems range from a couple hundred dollars to a couple thousand dollars. The upfront costs will eventually pay for itself in water and energy savings, however the initial costs are a factor. Only buying what you need based on home usage will keep costs in check. It is not necessary to buy the largest possible unit because most homes do not use massive amounts of water at once, like a business might require. Most home units are between $500 and $700 dollars. Smaller units that will handle one or two appliances or a single shower can be as low as $200.

Include the cost of installation in your budget. Many warranties do not cover personal installation due to the risk of overburdening the electrical system. The cost of both a plumber and electrician may be required in order to gain the savings from a tankless water heater.

Do you want the unit to be inside or outside? Indoor units generally require venting to the outside of the house much like a dryer. This may increase the cost of installation or require the unit to be placed in a less convenient location.

Features to Consider

Gas or Electric? Tankless water heaters are available in gas, electric or solar. Solar units are less common than gas and electric units. Solar requires the installation of solar panels and a way to store the energy that will be used to heat the hot water. These units have the highest initial cost but eliminate the electric portion of heating the water because it will then be heated with the sun. Many consumers make the choice of gas or electric depending on what the home currently carries. If you do not have a gas hot water heater, dryer or stove, installing gas lines can be cost prohibitive. All homes are able to accommodate an electric tankless water heater. The benefit of gas is that they are generally able to handle a higher flow rate.

Tankless Water Heater2Amp Requirements is another important factor as it may be necessary to increase the amperage in your electric box and install larger copper wires. This will add to the installation costs but may be necessary. Increasing the breaker amperage without increasing the line capacity could result in a house fire. Because of this, often warranties for tankless water heaters are only covered unless the unit is professionally installed. Both plumbing and electrical work may be required in addition to the cost of the water heater.

Water Flow Requirements. Units range in size from whole house units to heaters that will run one appliance at a time. To figure out what your flow requirements will be calculate the flow rate for each appliance and then get a unit that can handle a flow that may include all or multiple appliances being used simultaneously. This information can be found online.

Do You Want an Automatic Flow Modulator? This feature will maintain a constant temperature even when more than one shower or appliance is being run at the same time.

What Are the Temperature Control Options? Controls that allow changes within smaller increments will help you save even more money because you will be able to adjust it based on your personal preferences.


Tankless water heaters can save energy and money, although they do have a higher upfront cost than a traditional water heater. One of the biggest advantages to a tankless water heater is the constant flow of hot water regardless of the demand. You will never run out of water because the water heats as it is pumped through the system. Rather than heating 50 or 60 gallons and keeping that at a high temperature all of the time, the tankless water heater only heats exactly what you need when you need it, making it an excellent choice when you are ready to replace your existing system.



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