There are two primary options for heating water: tank and tankless water heaters. The first option, and most traditional, is a tank water heater. These water heaters heat water and store it in large tanks so that it’s ready whenever needed. Tanks are typically between 15 to 60 gallons, allowing homeowners quick access to hot water.

While tank water heaters aren’t comparatively expensive, the primary downside is that energy must constantly be expended to keep the tank warm at all times. This means that you may see a spike in your energy bills due to the water heater running at a higher energy level.

The second option for heating water is a tankless water heater. These heat water as needed and are installed directly on the water lines that go to your plumbing fixtures. While they require a few more seconds to reach the fixture than a hot water tank does, they don’t require a constant expenditure of energy.

Tankless water heaters are incredibly energy-efficient and can potentially reduce your energy consumption by up to 35 percent. They can be installed in small spaces and take up significantly less space than a tank water heater. Depending on the size of your home, you may need to install several tankless water heaters to provide adequate hot water throughout the house. This is important if multiple household members or appliances use hot water simultaneously.

Tankless water heaters tend to require more maintenance due to hard water sediment buildup, but these mineral deposits can usually be mitigated with a whole-home water softener.