The Best Type of Tankless Water Heaters

Updated February 21, 2017

In recent years, tankless water heaters have been heavily touted as a money-saving alternative to the traditional hot water heater with a storage tank. The theory is that a tankless unit heats water instantly upon demand rather than working constantly to keep a reservoir of hot water ready at all times. Several companies have come on to the scene as leaders in the field of tankless hot water heaters.


This company has been selling tankless water heaters for half a century in Japan, and entered the North American market in the late 1990s. With the T-K3 model, Takagi introduced a system of linking four separate tankless heaters without having to add another control panel. This simplicity might appeal to families or businesses with high hot water demands. Eight Takagi models qualify for the federal tax credit, which amounts to 30 per cent off the purchase and installation price up to £975.


Noritz makes 12 tankless hot water heaters that qualify for a federal tax credit. Many states also have approved a rebate program for Noritz Energy Star models. Noritz introduced the dual flame burner technology. By adding a second row of burners, efficiency increases. Escaping gases from the first row of burners are consumed by the flame from the second row. Another benefit of this additional burner is to stabilise water temperature at the spigot and reduce fluctuation.


Like Takagi and Noritz, Rennai produces a line of tankless water heaters, many of which would also qualify for the federal tax credit and state rebate program. The technology in Rinnai is similar to the other two. Rinnai picked up additional name recognition after being chosen the official tankless water heater for the HGTV 2010 Home Giveaway.

Final Tips

A consumer review by Healthy House Institute found that the technology employed by tankless water heaters performs well while one shower or bath was running, but hot water flow diminished when a second shower or bath was added. Do your research accordingly. Small differences in price, efficiency and size might affect your decision. Traditional water heaters with a tank cost between £195 to £325. Tankless water heaters are priced according to heating power and can run more than £650 for top models.

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About the Author

Derek Dowell has ghostwritten dozens of projects and thousands of blogs in the real estate, Internet marketing and travel industry, as well as completed the novel "Chrome Sombrero." He holds a Bachelor of Science in environmental legal studies from Missouri State University.