A. O. Smith GDHE-50 Vertex 100
A. O. Smith GDHE-50 Vertex 100

Best gas water heater

*Est. $1,940
Estimated Price

Before you gasp at the cost of this energy-efficient water heater, lower its price by at least 30 percent. The reason: This water heater qualifies for a federal tax credit (if installed during 2010) plus state rebates and any other local incentives. Experts say gas water heaters cost the least to operate anyway, and this model saves 30 percent compared with other gas models. It also provides nearly unlimited hot water, so it's ideal for a big household with high peak demands. Experts and users say this tank-style model not only saves gas, but it also costs less to install than a tankless water heater, and its power vent lowers installation costs when replacing a fuel-hungry electric water heater.

Rheem FVR NATGAS 22V40F1
Rheem FVR NATGAS 22V40F1

Best budget gas water heater

*Est. $260
Estimated Price

Like most gas models, this budget-friendly pick costs less to operate than average electric water heaters. Reviews appreciate the Rheem's moderate price tag and praise its simple design and quality features. This 40-gallon water heater comes with a warranty for six years.

GE GeoSpring Hybrid GE H50DNSRSA
GE GeoSpring Hybrid GE H50DNSRSA

Best hybrid electric water heater

*Est. $1,440
Estimated Price

This efficient, Energy Star-rated electric water heater is eligible for the 30 percent federal tax credit plus other incentives. This hybrid water heater adds a heat pump to a storage tank to boost efficiency and can run in several modes depending on how much hot water users need. This GE hybrid earns the most recommendations in reviews and is praised for its outstanding energy efficiency and ease of installation.

Kenmore 32656
Kenmore 32656

Best budget electric water heater

*Est. $290
Estimated Price

This 55-gallon electric water heater costs much less than more energy-efficient water heaters, and minimizes installation costs if you're replacing another electric model. It's sized for a family of four and can heat 61 gallons for your household's peak hour of usage. That said, Kenmore in general doesn't earn high marks for its water heaters, and it's important to note that this unit's six-year warranty doesn't cover any labor. Still, owners give this budget-priced water heater good ratings.

Rinnai R75LSiN
Rinnai R75LSiN

Best whole-house tankless water heater

*Est. $900
Estimated Price

This tankless water heater only burns gas when hot water is used, a fact that saves users some money. For an existing home, the lower installation costs of the A.O. Smith Vertex storage-tank water heater may make it a better buy. Both models are eligible for the 30 percent federal tax credit plus other Energy Star incentives. Gas tankless water heaters have a much longer average lifespan, though, and Rinnai earns top ranking among water heater brands. This model is recommended in more than one review, with praise for its build quality, ease of installation and excellent warranty. The maximum flow rate of 7.5 gallons per minute is enough for most households with two or three bathrooms.

Bosch Ariston GL4
Bosch Ariston GL4

Best small point-of-use water heater

*Est. $170
Estimated Price

Installing a small point-of-use water heater can help deliver hot water to bathrooms or sinks that are too far away from your main hot-water source. Reviews say this electric on-demand water heater combines the best of tankless technology with a 4-gallon mini-tank for quick hot water at one shower or sink. It's small enough to install under a sink and plugs into a regular outlet for DIY installation. It's useful either as a stand-alone water heater or to augment another water heater. The warranty is for six years.

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