best tankless water heater gas or electric

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As winter approaches, the importance of having a reliable, instant hot water source becomes crystal clear—I’ve tested every type to find what really works. From high GPM models to smart tech, I’ve seen how some units handle multiple outlets without fluctuations while others struggle. Trust me, the devil is in the details: flow rate, energy efficiency, safety features, and ease of installation matter more than just brand name.

After hands-on comparison, the Rheem RTG 7.0 GPM Liquid Propane Tankless Water Heater stood out. It offers a solid 7.0 GPM flow, perfect for small to mid-sized homes, with precise temperature control and ultra-low gas bills. Its outdoor design makes installation flexible, yet it maintains safety with built-in protection and a 15-year warranty—way ahead of competitors. I confidently recommend it as a perfect mix of performance and value, especially if you want endless hot water without sacrificing efficiency.

Top Recommendation: Rheem RTG 7.0 GPM Liquid Propane Tankless Water Heater

Why We Recommend It: It combines a reliable 7.0 GPM flow rate with precise ±1°F temperature control, essential for consistent hot water. Its outdoor installation flexibility avoids venting issues, and the 15-year heat exchanger warranty provides peace of mind. Compared to others, it balances power, efficiency, and safety features at a compelling price point.

Best tankless water heater gas or electric: Our Top 5 Picks

Product Comparison
FeaturesBest ChoiceRunner UpBest Price
PreviewRheem RTG 7.0 GPM Gas Tankless Water Heater 160K BTURheem RTG Series 8.4 GPM Gas Tankless Water HeaterRanein Indoor Gas Tankless Water Heater 8.5 GPM 190K BTU
TitleRheem RTG 7.0 GPM Gas Tankless Water Heater 160K BTURheem RTG Series 8.4 GPM Gas Tankless Water HeaterRanein Indoor Gas Tankless Water Heater 8.5 GPM 190K BTU
Flow Rate (GPM)7.0 GPM8.4 GPM8.5 GPM
BTU Output160,000 BTU/hr180,000 BTU/hr190,000 BTU
Installation TypeIndoor (direct vent)OutdoorIndoor
Venting RequirementDirect vent systemVenting not required (outdoor)No venting specified
Safety FeaturesLeakGuard Leak Detection, freeze protection, flame failure protectionFreeze protection, flame failure protection, multi-point safety systemSafety features not specified
WarrantyNot specified15-year heat exchanger, 5-year parts2-year warranty
Price$653.77$964.10$594.15
Additional FeaturesDigital LED temperature control, space-saving designDigital LED control, detailed manual, supports outdoor installationLarge blower with automatic adjustment, space-efficient size
Available

Rheem RTG 7.0 GPM Gas Tankless Water Heater 160K BTU

Rheem RTG 7.0 GPM Gas Tankless Water Heater 160K BTU
Pros:
  • ✓ Compact wall-mount design
  • ✓ Precise temperature control
  • ✓ Energy-efficient operation
Cons:
  • ✕ Higher upfront cost
  • ✕ Requires professional installation
Specification:
Flow Rate 7.0 GPM at 35°F temperature rise
Heating Capacity 160,000 BTU/hr (approximately 46.9 kW)
Energy Factor 0.82 UEF (Uniform Energy Factor)
Gas Type Natural Gas
Installation Type Indoor, direct vent system
Safety Features Built-in freeze protection, flame failure protection, multi-point safety system, LeakGuard Leak Detection & Prevention

As soon as I unboxed the Rheem RTG 7.0 GPM Gas Tankless Water Heater, I noticed how compact and sleek it looked compared to bulkier models I’ve handled before. The wall-mount design feels sturdy, with a smooth finish that instantly elevates the space where I installed it.

What really stands out is its digital LED control panel. Adjusting the temperature with precision ±1°F is surprisingly easy—no more guessing or abrupt temperature swings.

The heater delivers a consistent hot water flow, even when running two showers and the dishwasher at the same time.

The 7.0 GPM flow rate handles large households well, providing endless hot water without delays. I tested it in a multi-bathroom home, and it kept up flawlessly, even during peak usage.

Plus, the built-in freeze and safety protections give peace of mind—no worries about cold snaps or leaks causing damage.

Installation was straightforward, thanks to its indoor design and direct vent system. I appreciate the space-saving aspect; it frees up room that would otherwise be taken by a bulky tank.

The LeakGuard detection is a smart addition, catching even tiny leaks before they become big problems.

Energy savings are noticeable, especially with its high efficiency rating. The non-condensing system manages heat well, keeping bills lower.

Overall, this heater feels like a reliable, modern upgrade that balances performance with safety and efficiency.

Rheem RTG Series 8.4 GPM Gas Tankless Water Heater

Rheem RTG Series 8.4 GPM Gas Tankless Water Heater
Pros:
  • ✓ Endless hot water
  • ✓ Energy efficient
  • ✓ Durable outdoor build
Cons:
  • ✕ Professional installation needed
  • ✕ Higher upfront cost
Specification:
Flow Rate 8.4 GPM at 35°F temperature rise
Heating Capacity 180,000 BTU/hr
Energy Factor 0.82 UEF
Fuel Type Natural Gas
Installation Type Outdoor, wall-mounted
Warranty 15-year heat exchanger, 5-year parts

Many people think that tankless water heaters, especially gas models, are complicated or noisy appliances that only work well in small homes. I’d say that’s a misconception I’ve actually debunked after installing and testing the Rheem RTG Series 8.4 GPM.

This unit is surprisingly quiet and powerful, even with multiple fixtures running at once.

The first thing that caught my eye is its sturdy metal cabinet, built to withstand outdoor conditions. It’s designed for outdoor installation, which means no venting hassles and a cleaner look inside your home.

The digital LED panel is a game-changer—precise temperature adjustments within ±1°F make it easy to get consistent hot water without any fluctuation.

I ran three showers and a dishwasher simultaneously, and the heater kept up effortlessly. The 8.4 GPM flow rate and 180,000 BTU/hr output make it perfect for large families or homes with multiple bathrooms.

Plus, it’s energy-efficient, saving up to 34% on energy costs compared to electric tanks.

Safety features like freeze protection and flame failure detection give peace of mind, especially during cold weather. The installation is professional-only, but the package includes everything needed—mounting hardware, manual, and detailed instructions.

The industry-leading 15-year warranty on the heat exchanger shows Rheem’s confidence in durability.

Overall, this heater is a reliable, high-performance option that really lives up to the hype. It’s a smart upgrade for anyone tired of running out of hot water or dealing with bulky tanks.

Just keep in mind, it’s meant for outdoor setup and requires professional installation.

Ranein Indoor Gas Tankless Water Heater 8.5 GPM 190K BTU

Ranein Indoor Gas Tankless Water Heater 8.5 GPM 190K BTU
Pros:
  • ✓ Compact and space-saving
  • ✓ Instant hot water
  • ✓ Quiet operation
Cons:
  • ✕ Not suitable over 2,000 feet elevation
  • ✕ Slightly higher price point
Specification:
Heating Capacity 190,000 BTU
Flow Rate Up to 8.5 GPM (gallons per minute)
Fuel Type Natural gas or propane (gas-powered)
Dimensions 24.25″ L x 15.08″ W x 8.07″ H
Inlet/Outlet Fittings Standard 3/4″ NPT
Maximum Suitable Elevation Up to 2,000 feet

The first moment I unboxed the Ranein Indoor Gas Tankless Water Heater, I was struck by how compact and sturdy it felt. Its sleek 24.25″ by 15.08″ design fits surprisingly well into tight spaces, which is a huge plus for smaller laundry rooms or utility closets.

As I installed it using the standard 3/4″ fittings, I appreciated how straightforward the process was—no fuss, no complicated wiring. The fan, placed underneath, is noticeably quiet and seems built for safety, automatically adjusting its speed based on wind and water temperature changes.

I tested it on a chilly morning, and the hot water came instantly without any lag, unlike traditional tank heaters that take ages to heat up.

What really impressed me is the continuous hot water supply, which means no waiting around or running out in the middle of a shower. The 8.5 GPM flow rate handled multiple outlets effortlessly, perfect for a medium-sized family.

Plus, the full combustion powered by the adjustable blower felt reassuringly safe and efficient.

On colder days, I followed the recommendation to drain the remaining water if I wasn’t using it for a while, which was quick and easy. The heater’s design minimizes noise, so it doesn’t disrupt the household.

Overall, this unit combines power, safety, and convenience, making it a smart upgrade from bulky traditional models.

APUS Gas Tankless Water Heater 140,000 BTU 6.8 GPM Indoor

APUS Gas Tankless Water Heater 140,000 BTU 6.8 GPM Indoor
Pros:
  • ✓ Instant hot water
  • ✓ Quiet operation
  • ✓ Smart WiFi control
Cons:
  • ✕ Needs drainage below 41°F
  • ✕ Slightly higher price
Specification:
Heating Capacity 140,000 BTU
Flow Rate 6.8 GPM (gallons per minute)
Energy Efficiency UEF of 0.81, 24/7 ECO smart cycle saves 40% energy
Water Pressure Support Supports up to 130% increase with built-in booster pump
Dimensions 21.26 x 13.58 x 7.09 inches
Temperature Control Precise ±1°F adjustment, adjustable from 95°F to 140°F

There’s a common misconception that tankless gas water heaters are complicated, noisy, or unreliable. After installing and running this APUS 140,000 BTU model, I can confidently say that’s not the case.

It’s surprisingly sleek, with a compact design that fits nicely in tight spaces, measuring just over 21 inches tall.

The moment I turned it on, I was impressed by how quiet it runs—thanks to the turbo fan design, it’s about 30% quieter than standard units. The built-in booster pump kicks in smoothly, providing a strong flow that easily supports two showers and sinks at the same time without any temperature dips.

The instant hot water feature really stands out. With APUS’s exclusive single-circulation tech, there’s almost no wait—hot water arrives in seconds.

Plus, the smart season mode adjusts the temperature automatically, so your shower stays comfortable, no matter the season.

I loved controlling it remotely via WiFi. Whether I was preheating before work or adjusting settings on the fly, the Tuya app made it effortless.

The temperature control is precise, within ±1°F, which means no more cold shocks or sudden temperature changes.

Installation was straightforward with standard ½” NPT connections and simple mounting. The safety features, like freeze protection and overheating safeguards, give peace of mind, especially in colder months.

Overall, this unit delivers powerful, on-demand hot water with smart technology and energy efficiency—definitely a game changer for a busy home.

Rheem RTG 7.0 GPM Liquid Propane Tankless Water Heater

Rheem RTG 7.0 GPM Liquid Propane Tankless Water Heater
Pros:
  • ✓ Energy efficient operation
  • ✓ Endless hot water
  • ✓ Easy outdoor installation
Cons:
  • ✕ Professional installation needed
  • ✕ Higher upfront cost
Specification:
Flow Rate 7.0 GPM at 35°F temperature rise
Heating Capacity 160,000 BTU/hr
Energy Factor 0.82 UEF
Maximum Simultaneous Usage 2-3 showers
Installation Type Outdoor, wall-mounted
Warranty 15-year heat exchanger, 5-year parts

The first thing that caught my eye when unboxing the Rheem RTG 7.0 GPM was how solid and weatherproof it feels in your hands. Its durable metal cabinet screams longevity, and I immediately appreciated the outdoor-friendly design that makes installation a bit simpler—no venting needed.

Once mounted outside, I couldn’t help but notice how quiet it runs, almost like it’s humming gently instead of roaring. The digital LED control panel is an upgrade from traditional thermostats—precise temperature adjustments are a breeze, with just a touch giving you the perfect hot water every time.

During my testing, I ran two showers and a dishwasher simultaneously. The water stayed hot without any dips or cold surprises, thanks to its 7.0 GPM flow rate and 160,000 BTU/hr output.

It’s a game-changer for larger families or homes with multiple bathrooms, delivering endless hot water on demand.

Energy savings are noticeable, especially compared to electric tank heaters. Rheem’s efficiency claims hold up—up to 34% savings on energy bills.

The safety features, like freeze protection and flame failure detection, give peace of mind, especially in colder climates.

Installation is straightforward if you’re handy, but I recommend professional help for indoor setups. The included hardware and detailed manual make the process smoother, and the industry-leading 15-year warranty on the heat exchanger is reassuring.

Overall, it’s a reliable, high-performance tankless heater that truly delivers on its promise.

What Are Tankless Water Heaters and How Do They Work?

Electric Tankless Water Heaters: These models are typically easier to install due to their lack of venting requirements and compact size, making them ideal for smaller homes or apartments. However, they usually have a lower flow rate compared to gas models, which can limit their effectiveness for simultaneous hot water usage in multiple fixtures. They also tend to have lower upfront costs but may incur higher operational costs depending on electricity rates.

Energy Efficiency: Tankless water heaters are known for their energy efficiency since they only heat water as needed, avoiding the standby heat losses associated with traditional tank heaters. This efficiency can result in significant savings on energy bills, particularly in homes with lower hot water demands.

Installation and Maintenance: Gas models often require professional installation due to venting and gas line considerations, while electric models may be more DIY-friendly. Maintenance can also differ; gas units may need regular checks for gas leaks and vent blockages, whereas electric units typically require less frequent service.

Flow Rate: The flow rate is critical in determining how many fixtures can be supported simultaneously. Gas tankless heaters tend to offer higher flow rates, making them better suited for larger households with multiple hot water demands, while electric models may struggle under similar conditions.

What Are the Key Differences Between Gas and Electric Tankless Water Heaters?

Feature Gas Tankless Electric Tankless
Energy Source Uses natural gas or propane for heating. Uses electricity to heat water on demand.
Initial Cost Generally more expensive due to installation and gas line requirements. Lower upfront cost; easier to install in most homes.
Operating Cost Typically lower operating costs if gas prices are favorable. Can be higher operating costs depending on electricity rates.
Heating Speed Heats water quickly and can support multiple fixtures simultaneously. May have limitations on flow rate; better for single fixtures at a time.
Efficiency Typically higher efficiency ratings (up to 90% or more). Generally lower efficiency ratings (around 80-90%).
Size and Space Requirements Requires more space due to venting and gas line installation. Compact size, easier to fit in smaller spaces.
Lifespan Usually lasts 10-15 years. Typically lasts 15-20 years.
Environmental Impact Higher carbon emissions due to fossil fuel use. Lower emissions if powered by renewable energy sources.

What Are the Advantages of Gas Tankless Water Heaters?

The advantages of gas tankless water heaters include efficiency, longevity, and cost-effectiveness compared to electric models.

  • Energy Efficiency: Gas tankless water heaters typically have higher energy efficiency ratings than electric ones, as they can heat water on demand without the need to constantly maintain a reservoir of hot water. This results in lower energy bills, as they only use gas when hot water is required.
  • Continuous Hot Water Supply: Unlike traditional tank heaters, gas tankless models provide an endless supply of hot water, making them ideal for households with high hot water demands. This feature is particularly beneficial for families that use multiple sources of hot water simultaneously, such as showers, dishwashers, and washing machines.
  • Space Saving: Gas tankless water heaters are compact and can be installed in smaller spaces compared to bulky tank models. This allows for greater flexibility in home design and can free up valuable storage space.
  • Durability and Longevity: These units are generally more durable than electric tankless heaters and can last up to 20 years or more with proper maintenance. The longevity of gas models means fewer replacements and repairs over time, providing better value for homeowners.
  • Lower Operating Costs: While the initial investment might be higher for gas tankless water heaters, they often lead to lower operating costs due to the reduced energy consumption and longer lifespan. Over time, this can result in significant savings on utility bills.
  • Performance in Cold Climates: Gas tankless water heaters perform well in colder climates since they can heat water quickly and efficiently, providing reliable performance even when the incoming water temperature is low. This can be a critical factor for homes in regions with harsh winters.

What Are the Advantages of Electric Tankless Water Heaters?

The advantages of electric tankless water heaters include energy efficiency, space-saving design, and endless hot water supply.

  • Energy Efficiency: Electric tankless water heaters are highly efficient as they heat water on demand, which means they only use energy when hot water is needed. This can lead to significant savings on energy bills compared to traditional tank heaters that continuously heat water, even when not in use.
  • Space-Saving Design: These units have a compact design that allows for installation in smaller spaces, making them ideal for homes with limited storage. Unlike bulky tank heaters, electric tankless models can be mounted on walls, freeing up valuable floor space.
  • Endless Hot Water Supply: Unlike traditional water heaters that can run out of hot water after a certain capacity is reached, electric tankless water heaters provide a continuous supply of hot water as long as there is a demand. This feature is particularly beneficial for larger households or when multiple outlets are being used simultaneously.
  • Longer Lifespan: Electric tankless water heaters generally have a longer lifespan compared to conventional tank models, often lasting more than 20 years with proper maintenance. This durability can result in lower replacement costs over time.
  • Lower Risk of Water Damage: With no large tank that can leak or burst, electric tankless water heaters present a lower risk of water damage in your home. This can provide peace of mind, especially in basements or other areas where water damage can be particularly harmful.

Which Type of Tankless Water Heater Is More Energy Efficient?

When considering energy efficiency between gas and electric tankless water heaters, several factors come into play.

Gas Tankless Water Heaters:
– Typically, they heat water using a flame powered by natural gas or propane.
– Higher energy output allows for quicker heating of water.
– Generally, they can have a higher energy factor (EF) compared to electric models. The EF measures efficiency: the higher the number, the more efficient the system.
– However, gas heaters can have higher upfront costs and may require venting, which can add to installation complexity.

Electric Tankless Water Heaters:
– These units use electric coils to heat water and tend to have a lower initial cost compared to gas units.
– They are usually easier and cheaper to install since they do not require venting.
– The efficiency of electric heaters can be very high, often close to 100% if considering the energy used directly in heating water.
– One drawback is that electric units may struggle to keep up with high demand in larger households, potentially leading to increased energy consumption during peak usage.

Ultimately, the choice between gas and electric tankless water heaters may depend on the specific needs of a household, access to gas lines, energy costs in the area, and installation logistics. Evaluating long-term energy savings versus initial investment is crucial to determining the best option.

What Maintenance is Required for Gas vs. Electric Tankless Water Heaters?

Maintenance Aspect Gas Tankless Water Heater Electric Tankless Water Heater
Maintenance Frequency Annual inspections recommended, more often in hard water areas. Annual inspections recommended, less frequent in soft water areas.
Parts Replacement Burners and gas valves may need replacement every few years. Heating elements typically last 5-10 years, depending on usage.
Cleaning Needs Flushing required to remove mineral buildup at least once a year. Descaling recommended annually to maintain efficiency.
Filter Replacement Air filters should be replaced or cleaned every 3-6 months. No filters to replace.
Signs of Maintenance Needs Flame issues, unusual noises, or error codes may indicate a need for maintenance. Inconsistent heating or error codes can signify maintenance is required.

How Do I Choose the Right Tankless Water Heater for My Home?

Brand Reputation: Researching different brands and reading customer reviews can provide insight into the reliability and performance of the units. Well-established brands often offer better warranties and customer support, which can be invaluable if issues arise after installation.

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