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Summary:
- Hot water heaters are the second largest contributor to high energy bills in the United States. Upgrading to a newer system can help you save money.
- Storage or tank water heaters are traditional and affordable. Tankless heaters and heat pump water heaters come with a higher upfront cost, but better efficiency.
- Solar water heaters are eco-friendly and highly efficient. Indirect water heaters are designed to integrate with existing furnaces or boilers.
- Before choosing a new water heater, it’s important to understand how much water you’re using, what’s out there, and how to hire a trustworthy plumber.
Water heaters are a big investment—and the upfront cost to buy one is just one of the many ways they can impact your wallet. The energy required to heat water accounts for up to 18% of the average homeowner’s energy bill each month.
Upgrading to a newer model can help you save. Call Caccia Plumbing for expert advice—and learn more about your options in this ultimate water heater buyer’s guide for 2025.
Related: The Best Water Heater Temperature Setting for You
Different Types of Hot Water Heaters
Step one in finding the right hot water heater is always understanding what’s out there. From traditional tank-based systems to newer options that integrate solar and shave down your energy bills, let’s take a look at the pros and cons of each type.
Storage/Tank Water Heaters
Traditional storage or tank water heaters are very common here in the US—you’re more likely to find this style in the average home than any other type. The system draws cold water into a storage tank that contains a heating element, which warms it up so it can be used when needed.
Pros
- Affordability. Tank water heaters cost significantly less out of pocket than other options on the market.
- Ease of access. Replacement parts like heating elements are typically easy to acquire—many plumbers and hardware stores will have them in stock.
- Reliability. If you choose a tank size that fits your needs, you should have consistent access to hot water when you need it.
Cons
- Not as efficient. Standby heat loss forces the tank to constantly re-heat water.
- Large footprint. Tanks are large and can take up a lot of space in smaller homes.
- Limited capacity. Small tanks may mean your water heater struggles to keep up if your household has a lot of demand.
Related: Tank or Tankless: What’s the Difference?
Tankless Water Heaters
Tankless water heaters are highly energy-efficient when installed correctly. They function by drawing in cold water from your intake line and heating it to a set temperature on demand. That means there’s no need for a tank!
Pros
- Energy efficiency. Tankless water heaters are between 8% and 34% more efficient than standard storage water heaters.
- Unlimited access. Tankless water heaters are less likely to run out of hot water because they heat it on demand.
- Long lifespan. Most tankless hot water heaters can last up to 20 years or longer with proper maintenance and care.
Related: The Benefits of Tankless Water Heaters
Cons
- More expensive. Upfront costs for purchase and installation are often higher.
- Flow rate limitations. Tankless water heaters may struggle to put out more than 2-5 gallons per minute.
- Complicated retrofits. In older homes, it may be necessary to upgrade electrical or gas systems before installing a tankless water heater.
Heat Pump Water Heaters
Heat pump water heaters (HPWHs), sometimes known as “hybrid” water heaters, are very efficient and work best in warmer climates. They work by collecting ambient heat from the air and transferring it into a large storage tank that draws cold water in from the intake line.
Pros
- Higher efficiency. ENERGY STAR-rated HPWHs use up to 70% less energy than traditional gas-powered systems.
- More eco-friendly. Pulling heat from the air lowers your carbon footprint by decreasing your reliance on gas and other fossil fuels.
- Other benefits. HPWHs can slightly cool and dehumidify the air around them as they work.
Cons
- Space restrictions. HPWHs range in size from , but they need between 450 to 700 cubic feet of clearance for ideal airflow.
- Noise levels. Because most models contain a fan and compressor, they can produce up to 55 decibels of noise.
- Poor performance in the cold. Cooler temperatures can force your HPHW to work harder than it should, which lowers energy efficiency.
Solar Water Heaters
Solar water heaters have been on the market for over a century, but have only recently gained serious traction in response to green energy subsidies. These systems use energy from the sun to heat water, either passively (by directly exposing the tank to sunlight) or actively (by converting sunlight into electricity to power a heating system).
Pros
- Higher efficiency. Solar water heaters are about 50% more efficient than gas or electric, which can save you money.
- Free energy (mostly). Unlike natural gas or electric heaters, you don’t have to pay a utility bill to access energy from the sun. Aside from the cost of solar panels, it’s free!
- Cooler weather compatible. Solar is about sunlight, not temperature—so cooler days or weather won’t affect how it works.
Cons
- High upfront cost. These systems can be expensive to install, especially if you don’t already have solar panels on your roof.
- Cloud cover problems. While temperature alone won’t change how your panels operate, cloudy days and rainy weather can.
- More maintenance. Solar panels and solar water heaters need regular maintenance in order to operate efficiently. If panels corrode or become dirty, they’ll stop working.
Indirect Water Heaters
An indirect water heater uses your home or building’s existing boiler or furnace to heat water. Most systems contain a heat exchanger that transfers heat to a large storage tank.
Pros
- Improved efficiency. Indirect water heaters use your furnace or boiler’s total BTU output to heat the water, which minimizes waste.
- Easier installation. If you already have a boiler or furnace, a combination system may be easier to install on your existing gas or electric hookup.
- Great consistency. More powerful systems struggle less to keep water at a set temperature, regardless of the weather.
Cons
- Potential bans. The Bay Area is slowly phasing out gas-powered water heaters and furnaces.
- Space restrictions. Boilers, furnaces, and indirect water heaters can take up a lot of space in small homes.
- More complicated repairs. An indirect water heater is directly tied to your boiler or furnace—that means no hot water if it stops working.
Which Water Heater is Best?
Rapid advances in technology and the changing HVAC landscape are helping homeowners enjoy more consistent hot water and lower their carbon footprint, too. Finding the right product, though? That can be a serious challenge! Let’s take a look at what you should consider—and why.
Water Heaters to Watch For in 2025
Every water heater is unique, and some brands or models may be more reliable than others. The best way to determine which product is right for your home is to give us a call at Caccia Plumbing. In the meantime, here’s a sneak peek at a few of the latest systems on the market.
Permits, Local Regulations, & Rebates
San Mateo tightly regulates water heaters, so it’s important to understand what standards your system needs to meet before you pick a product. You’ll also need a permit—that’s something we can handle for you when we install your heater! Other requirements include:
- Seismic safety protocols. Water heaters must be anchored or strapped down to prevent them from falling over during earthquakes. Learn more about why it’s important to strap your water heater down.
- Insulation levels. All hot water heater tanks must be wrapped in an insulation blanket with an R-value of at least 12.
- National Electric Codes (NEC). A bonding jumper of the correct size must be installed across your hot and cold water pipes.
- Pipe insulation. The first 5 feet of your hot and cold water pipes must be insulated.
Other NEC and local plumbing codes set guidelines for the amount of space around your water heater or how far the ignition source needs to be from the floor. Because these can be tricky to navigate on your own, we strongly recommend calling us for help.
Related: Water Heater Regulations to Look Out For
Rebates & Tax Credits
Upgrading your water heater can cut your electric bill, but you may also qualify to save money on the cost of the system itself. New programs aimed at incentivizing energy-efficient upgrades help homeowners recoup their costs to make upgrading more affordable.
Choosing the Right Contractor
Choosing the right plumber to install your new hot water heater is extremely important. Their level of expertise and skill can quite literally make or break your system—and if they don’t have the right coverage, that could leave you footing the bill.
Here’s what to ask whenever you’re considering a contractor for hot water heater installation:
- Ask about licensing. All reputable plumbers should be licensed—and insured.
- Ask about experience. The more years in the industry, the more expertise they have.
- Read reviews. A flood of negative reviews with specific details is a red flag.
- Get referrals. Ask your friends and family to refer you to their favorite plumber.
- Ask for a quote. Never proceed with a service job until you have a quote in-hand.
At Caccia Plumbing, we have decades of experience working with residential plumbing systems, including water heaters. See our list of tips for finding the right plumber to get more helpful guidance. Or, just skip the process and call us directly—after all, plumbing is what we do best!
Hot Water Heater Maintenance Tips
Regardless of whether you go with a small solar water heater or a much larger system, your new equipment will need regular maintenance to stay in good working condition. The tips listed below can help you spot and prevent problems on your own, but if you aren’t comfortable around plumbing, we’re happy to step in!
- Check for leaks and corrosion around the tank itself (if your heater has one), and any pipes connected to it.
- Set your thermostat at a maximum of 120°F to avoid issues like scalding and maximize your energy efficiency.
- Hot water tanks should be drained and flushed at least once per year—more often if you have very hard water. This will flush away sediment that can cause damage over time.
- Read the warranty and user’s guide to ensure you know how to use and maintain your new hot water heater. You should also know when the warranty ends.
- Keep a log of any plumber’s visits or maintenance tasks. If you have a breakdown, knowing what you did already can help us find and fix it faster.
As for DIY water heater fixes and replacements? We don’t recommend handling jobs like these on your own, especially if you have to tinker with electrical connections or the inner workings of your tank. This can result in serious safety risks—it just isn’t worth it.
Related: Why You Should Have Your Hot Water Heater Drained
Upgrade to a Water Heater That Fits Your Life
Constantly running out of hot water is no fun—we get it! Don’t let your system give you the cold shoulder and hold you back. Our experts can help you explore your options and get a great deal on a brand-new water heater that fits your needs.
To get help with your water heater, just send us a message. For emergencies and total break-downs, call us directly at (650) 442-1470 for faster service.
Frequently Asked Questions About the Water Heater
How long do water heaters typically last?
Lifespan varies widely between types, brands, usage, and even the quality of your water. Hard water, for example, can lead to sediment build-up or corrosion that shortens the lifespan of your water heater.
Here’s a quick look at the average lifespans per type:
- Tank Water Heaters: 8 to 12 years
- Tankless Water Heaters: Over 20 years
- Heat Pump Water Heaters: 10 to 15 years
- Solar Water Heaters: 15 to 20 years
Ask us how you can extend the life of your water heater with yearly inspections.
How do I know when it’s time for a new hot water heater?
The most obvious symptoms are a total loss of hot water or leaks around the unit itself. If you’re already experiencing an issue like this, call us at (650) 442-1470 right away so we can help get you sorted. Other less urgent indicators include:
- Running out of hot water often
- Water that doesn’t get hot
- Sediment coming from your hot water only
- Loud hissing, clanking, or banging from the system
We’re happy to help you assess the situation and find the best solution—just send us a message!
Can I replace a hot water heater on my own?
We don’t recommend tackling this one yourself, even if you’re a confident DIYer. Installing a water heater can be a dangerous and complicated process, especially if it involves electrical or gas lines. Having anyone other than a licensed plumber install it voids the warranty, too.
Give us a call at (650) 442-1470 to ensure everything is up to code.
What type of hot water heater is best in California?
In California’s warm climate, tankless or heat pump water heaters are ideal—they increase efficiency and lower water bills. But the right choice for your home depends on factors like the size of your household, how much water you use, and whether being eco-friendly is important to you. Call us at (650) 442-1470 to explore your options!
Is my water heater still under warranty?
Look for a label with a model and serial number on the outside of your water heater. You should be able to look up the status of your warranty on the manufacturer’s website or by calling their customer service line.
Too complicated? Send us a message to schedule a service call.
