There are a number of factors to consider when choosing a new water heater. First, you must decide what type of water heater you would like – tank or tankless. Tank water heaters hold a certain volume of water at a preset temperature – usually between 120 and 130 degrees. When you turn on a hot water tap, water is pulled from the tank and replaced with cold water which is then heated. Tankless water heaters are different in that they only heat the water you need as you need it. This saves quite a bit of money in operational costs over time, though installation can cost more.
Finally, you must select a capacity and energy efficiency level to match your needs. A good water heater must be sized to the single hour peak need of your home. So, if you ran hot water for every fixture in your home for one hour, such as doing dishes and taking a shower continuously for one hour, how much water would you need? This is the right sized tank for you.