Deciding Between an Electric Heat Pump Water Heater and a Tankless Model

Making the smart decision when selecting a water heater for a home can make all the difference when it comes to savings and reliability. Both electric heat pump water heaters and tankless water heaters have their advantages and drawbacks, but understanding the differences between the two styles can help make the decision easier.

Electric heat pump water heaters are a type of tank-style water heater with an added heat pump which increases the overall efficiency of the unit. An electric heat pump is ideal for areas with mild climates, such as the Southeast, where they are often used. They are able to reduce energy costs up to 60% compared to traditional electric water heaters due to the way they transfer heat from the surrounding air and move it into the tank.

Tankless water heaters, on the other hand, provide an endless supply of hot water on demand. Unlike traditional tank-style water heaters, tankless water heaters heat water as it passes through the pipes, rather than heating and storing a large amount at once. Because of this, tankless water heaters are often considered more energy-efficient. While up-front costs may seem more expensive than an electric heat pump, tankless units often pay for themselves in a few years in terms of energy savings.

In the end, the choice between electric heat pump water heater and tankless water heater often comes down to the efficiency goals and budget of the homeowner. If long-term energy savings are the primary goal, a tankless water heater might be the better option. However, if the main focus is on a more economical purchase and immediate savings, an electric heat pump water heater might be the preferred choice.

No matter the decision, it’s important to do research on the best models for your needs. For those looking for more information on the best water heaters for the home, check out our Overview of Top Appliances, which provides an overview of the best models from a variety of brands.