10 Best High Efficiency Tankless Water Heaters of 2025 – Save Space and Energy

If you’re considering a more efficient way to heat water in your home, tankless water heaters might be the solution you need. These models not only save space but also reduce energy costs while providing an endless supply of hot water. In 2025, several high-efficiency options stand out for their performance and technology. Let’s explore the top contenders and what makes them worth your investment.

Rinnai RX199iN Condensing Tankless Water Heater

If you’re looking for a high-efficiency water heater that can handle multiple fixtures simultaneously, the Rinnai RX199iN is an excellent choice. With the ability to provide up to 11.1 GPM, it can easily support up to seven fixtures at once. This condensing tankless model operates on natural gas or propane and boasts a remarkable energy efficiency factor with a UEF of .98. For maintenance, the Quick Flush feature simplifies the process. Plus, it offers smart technology with a gas control system and optional WiFi control. Just remember, professional installation is recommended to guarantee peak performance.

Best For: Homeowners seeking an energy-efficient water heater capable of supporting multiple fixtures simultaneously.

Pros:

  • High flow rate of up to 11.1 GPM, accommodating up to seven fixtures at once.
  • Exceptional energy efficiency with a UEF of .98, leading to lower utility bills.
  • Quick Flush feature simplifies maintenance and enhances longevity.

Cons:

  • Professional installation is recommended, which may incur additional costs.
  • WiFi control module is sold separately, adding to the overall expense.
  • Requires either natural gas or propane, limiting options for some users.

ThermoMate 102,000 BTU Natural Gas Tankless Water Heater (CZ422NG)

The ThermoMate 102,000 BTU Natural Gas Tankless Water Heater (CZ422NG) stands out as the ideal choice for homeowners seeking an efficient, whole-house solution for their hot water needs. This unit delivers up to 4.7 GPM, providing unlimited hot water to 3-4 fixtures at once. With a remarkable thermal efficiency of 98%, it reduces annual operating costs by about 30% compared to traditional systems. Safety features like boil-dry protection and freeze protection guarantee peace of mind. Plus, the user-friendly 3.5-inch LED touchscreen makes adjusting temperatures a breeze, while its compact design saves valuable space in your home.

Best For: Homeowners looking for an efficient and space-saving solution for unlimited hot water to meet the demands of multiple fixtures simultaneously.

Pros:

  • Delivers unlimited hot water on demand with a thermal efficiency of 98%.
  • Equipped with advanced safety features to ensure reliable operation under various conditions.
  • Compact design occupies less space compared to traditional tank water heaters.

Cons:

  • Initial installation costs may be higher than traditional tank systems.
  • Requires a natural gas connection, limiting options for some homeowners.
  • Performance may be affected in extreme cold conditions if not properly installed or maintained.

Rheem RTGH Series Tankless Water Heater

For homeowners seeking a reliable and high-performing solution, the Rheem RTGH Series Tankless Water Heater stands out with its impressive flow rate of 8.4 gallons per minute. This natural gas unit boasts a powerful 157,000 BTU and operates efficiently at 120 volts. You can easily adjust the temperature settings between 100 to 140°F, with a default of 120°F. Its stainless steel construction guarantees durability, while the electric ignition simplifies operation. Plus, the warranty offers peace of mind: 1 year for labor, 15 years for the heat exchanger, and 5 years for parts. Enjoy endless hot water with this efficient model.

Best For: Homeowners looking for an efficient and high-capacity water heating solution that provides endless hot water on demand.

Pros:

  • High flow rate of 8.4 GPM allows for simultaneous use in multiple fixtures.
  • Durable stainless steel construction ensures long-lasting performance.
  • Flexible temperature settings between 100 to 140°F cater to individual preferences.

Cons:

  • Requires natural gas connection, which may limit installation options in some homes.
  • Higher upfront cost compared to traditional tank water heaters.
  • Electric ignition may require additional electrical work for installation.

Rheem RTG-70XLN-3 Outdoor Tankless Natural Gas Water Heater

Ideal for homeowners with multiple hot water demands, the Rheem RTG-70XLN-3 Outdoor Tankless Natural Gas Water Heater delivers an impressive flow rate of 7.0 gallons per minute. With a powerful output of 160,000 BTUs, it’s perfect for homes with 2–3 bathrooms. Enjoy continuous hot water without cold bursts, thanks to its hot-start programming. The Overheat Film Wrap guarantees safety and efficiency, while the self-diagnostic program and digital display simplify usage. Lightweight and outdoor wall-mounted, it measures 13.5W x 20.75H x 9.4D inches. Rated 4.4 stars, it’s a reliable choice for your hot water needs.

Best For: Homeowners with 2–3 bathrooms who require continuous hot water for multiple simultaneous uses.

Pros:

  • High flow rate of 7.0 GPM, suitable for simultaneous hot water demands.
  • Hot-start programming prevents cold water bursts during back-to-back uses.
  • Lightweight and compact design for easy outdoor wall-mounted installation.

Cons:

  • Limited to outdoor installation, which may not be suitable for all homes.
  • Requires natural gas connection, limiting options for those with electric systems.
  • Warranty details must be requested from customer service, which may be inconvenient.

Rheem Natural Gas Condensing Tankless Water Heater

With a remarkable flow rate of up to 9 gallons per minute, the Rheem Natural Gas Condensing Tankless Water Heater is perfect for homeowners seeking an efficient solution for their hot water needs. This compact, wall-mounted unit boasts a continuous heat output of 180,000 BTUs and an impressive efficiency rating of 0.93. You’ll appreciate features like Hot Start Programming, which eliminates cold water bursts, and an LED display for easy monitoring. Weighing just under 60 pounds and designed for indoor installation, it’s a smart choice. Plus, with solid warranties, you can trust its durability and performance.

Best For: Homeowners looking for an efficient and compact hot water solution with high flow rates and advanced features.

Pros:

  • High flow rate of up to 9 GPM, ideal for multiple simultaneous hot water needs.
  • Advanced features like Hot Start Programming and an LED display enhance usability and efficiency.
  • Solid warranty options, including a 15-year warranty on the heat exchanger, ensure long-term reliability.

Cons:

  • Indoor installation only, which may limit placement options for some homes.
  • Requires natural gas connection, which may not be available in all areas.
  • Weight of nearly 60 pounds could make installation more challenging for some users.

Rheem RTG-70DVLP-3 Tankless Liquid Propane Water Heater

The Rheem RTG-70DVLP-3 Tankless Liquid Propane Water Heater is an excellent choice for homeowners seeking a reliable solution to meet high hot water demands. Delivering up to 7.0 GPM, it’s perfect for 2–3 bathroom homes, ensuring you can enjoy hot water for showers and laundry simultaneously. With powerful 160,000 BTUs, you’ll get consistent hot water without cold bursts thanks to hot-start programming. Its compact metal cabinet is designed for indoor use and easy wall mounting, maximizing your space. Choose this high-efficiency unit for a versatile solution that meets your family’s hot water needs comfortably and conveniently.

Best For: Homeowners with 2–3 bathroom households who require a reliable source of hot water for simultaneous use.

Pros:

  • High efficiency: Delivers up to 7.0 GPM, suitable for multiple hot water needs without delays.
  • Powerful performance: Features 160,000 BTUs for consistent hot water supply during peak demand.
  • Space-saving design: Compact metal cabinet allows for easy wall mounting, optimizing indoor space.

Cons:

  • Indoor installation only: Not suitable for outdoor use, limiting installation options.
  • Requires professional installation: Needs a qualified installer for optimal setup, which can incur additional costs.
  • Initial cost: Higher upfront investment compared to traditional tank water heaters.

ThermoMate Propane Tankless Water Heater (CZ422LP)

If you’re looking for a powerful and efficient solution to meet your hot water needs, the ThermoMate Propane Tankless Water Heater (CZ422LP) stands out. With a robust 102,000 BTU output, it delivers 4.7 GPM, providing consistent hot water for 3-4 fixtures at once. Its compact size saves space, occupying less than one-third of traditional tank models. Enjoy an impressive thermal efficiency of 98%, cutting your annual costs by about 30%. Plus, its advanced safety features and smart technology, including a 3.5-inch LED touchscreen, guarantee peak performance and easy monitoring. This unit’s built to withstand severe weather, making it a reliable choice.

Best For: Homeowners seeking an efficient and space-saving solution for consistent hot water supply across multiple fixtures.

Pros:

  • High thermal efficiency (98%) reduces energy costs significantly compared to traditional tank models.
  • Compact design occupies less space, making it ideal for smaller homes or apartments.
  • Advanced safety features provide peace of mind with multiple protection mechanisms.

Cons:

  • Initial installation costs may be higher compared to traditional water heaters.
  • Requires propane supply, which may not be available in all areas.
  • Potential learning curve for users unfamiliar with smart technology and touchscreen controls.

Rheem RTGH-95DVELN-3 Tankless Natural Gas Water Heater

Homeowners seeking a reliable solution for continuous hot water supply will find the Rheem RTGH-95DVELN-3 Tankless Natural Gas Water Heater an exceptional choice. With a capacity of 9.5 GPM, it easily handles multiple applications simultaneously. Its super high-efficiency design guarantees you only use energy when needed, lowering your costs. The built-in EcoNet Wi-Fi technology allows you to customize settings and monitor usage right from your mobile device. You’ll appreciate the hot-start programming that prevents cold water bursts and the LeakGuard system that detects leaks, protecting your home from potential water damage. This heater truly combines convenience and safety.

Best For: Homeowners looking for a reliable, high-efficiency water heater that can provide continuous hot water for multiple applications at once.

Pros:

  • Super high-efficiency design reduces energy costs by operating only when needed.
  • EcoNet Wi-Fi technology allows for remote monitoring and customization of settings from a mobile device.
  • LeakGuard system enhances safety by detecting and preventing potential water damage from leaks.

Cons:

  • Initial installation costs may be higher compared to traditional water heaters.
  • Requires a sufficient natural gas supply and proper ventilation for optimal performance.
  • May need professional maintenance to ensure the smart technology functions properly over time.

APUS Tankless Water Heater Propane Gas

For those seeking a reliable and efficient solution for indoor hot water needs, the APUS Tankless Water Heater powered by propane gas stands out with its impressive 95,000 BTU heating capacity. It delivers up to 4.42 GPM, easily meeting the demands of two showers and a sink simultaneously. The smart digital display and adjustable temperature settings from 95°F to 140°F guarantee you get hot water on demand with precision. With an 85%+ thermal efficiency, it saves you 30% in energy costs compared to traditional heaters. Plus, safety features like automatic shutdown provide peace of mind, making it a top choice for your home.

Best For: Those who desire an efficient, space-saving solution for indoor hot water that can simultaneously service multiple fixtures.

Pros:

  • High efficiency: Achieves over 85% thermal efficiency, leading to significant energy savings.
  • Instant hot water: Offers hot water on demand, eliminating the wait time associated with traditional tank heaters.
  • Advanced safety features: Includes multiple layers of safety protection, ensuring reliable operation.

Cons:

  • Propane requirement: Requires propane gas for operation, which may not be convenient for all users.
  • Compact size: While space-saving, the compact dimensions may limit installation options in some homes.
  • Limited flow rate: The maximum flow rate of 4.42 GPM may not be sufficient for larger households with higher simultaneous hot water demands.

Rheem RTG-70DVLN-3 High Efficiency Tankless Natural Gas Water Heater

The Rheem RTG-70DVLN-3 High Efficiency Tankless Natural Gas Water Heater is an excellent choice for families with moderate hot water demands, thanks to its impressive flow rate of up to 7.0 GPM. With a powerful 160,000 BTUs, it’s perfect for homes with 2–3 bathrooms. Features like Hot Start Programming eliminate cold water bursts, while Overheat Protection guarantees safety. Its compact, wall-mounted design saves space, and the Integrated Digital Display makes operation easy. Rated 4.2 out of 5 stars, it shows solid customer satisfaction. Plus, you can rely on Amazon’s 30-Day Return Guarantee for peace of mind.

Best For: Families with moderate hot water demands, particularly those with 2–3 bathrooms and multiple simultaneous usage needs.

Pros:

  • High flow rate of up to 7.0 GPM, suitable for multiple hot water applications.
  • Compact wall-mounted design saves valuable space in your home.
  • Hot Start Programming prevents cold water bursts during back-to-back usage.

Cons:

  • Requires a 1/2 inch gas line, which may limit installation options in some homes.
  • Non-condensing model may not be as efficient as some condensing alternatives.
  • Weight of 46.5 pounds may require professional installation for proper mounting.

Factors to Consider When Choosing High Efficiency Tankless Water Heaters

When you’re choosing a high efficiency tankless water heater, there are several key factors to keep in mind. You’ll want to take into account energy efficiency ratings, flow rate capacity, and installation requirements. Don’t forget about safety features and the unit’s maintenance and durability to guarantee you make a smart investment.

Energy Efficiency Ratings

How do you choose the right high-efficiency tankless water heater for your home? Start by looking at the Energy Efficiency Ratings, particularly the Uniform Energy Factor (UEF). This metric shows how well the heater converts energy into hot water, with ratings ranging from 0.81 to 0.98. Higher UEF scores mean lower energy costs and a smaller environmental footprint. Most modern models reach thermal efficiency percentages of 95% or more. You could save around 30% on annual operating costs compared to traditional tank systems. Don’t forget that the energy source—whether natural gas, propane, or electric—can affect performance, so consider that when making your choice. Choosing wisely can lead to significant savings and efficiency in your home.

Flow Rate Capacity

Choosing the right flow rate capacity can make a significant difference in your home’s hot water supply. The flow rate, measured in gallons per minute (GPM), indicates how much hot water your tankless heater can provide simultaneously. If you have multiple hot water demands—like showers, laundry, and dishwashing—you’ll need a higher flow rate. Residential tankless water heaters typically offer flow rates from 4 to 11 GPM, so consider your household’s specific needs. It’s also essential to think about the number of fixtures you’ll use at once. Additionally, factors like inlet water temperature and desired output temperature can influence the effective flow rate, making it crucial to account for your local climate when choosing the right model.

Installation Requirements

While exploring options for high-efficiency tankless water heaters, it’s crucial to take into account installation requirements that can greatly impact performance and safety. Professional installation is highly recommended to guarantee compliance with safety standards. Many models need specific venting systems that must follow local building codes, which can vary by region. You’ll also need to confirm adequate gas supply lines and electrical connections, as these may require upgrades during installation. Some units are designed for indoor use, while others work best outdoors, influencing your location choice. Finally, the compact design allows for versatile mounting options, but remember to allocate enough space for maintenance access and airflow to keep your heater running efficiently.

Safety Features Included

When selecting a high-efficiency tankless water heater, it is vital to prioritize safety features that enhance reliability and protect your home. Look for built-in protections like boil-dry and freeze protection, which prevent damage and guarantee consistent performance. Overheating protection is essential, as it shuts down the system if temperatures exceed safe levels, reducing potential hazards. Some models come with flame-out protection that automatically detects when a flame is absent, increasing safety during operation. Additionally, consider water leak detection systems that alert you to internal leaks, preventing costly water damage. Advanced technologies like timeout protection and high-temperature lock protection also disable the unit in unsafe conditions, giving you peace of mind and guaranteeing safe operation.

Maintenance and Durability

Guaranteeing the longevity and efficiency of your high-efficiency tankless water heater goes hand in hand with understanding its maintenance needs and durability. Many models feature self-diagnostic technology, which helps you quickly identify malfunctions and minimize downtime. Built-in safety features like overheat protection and leak detection systems enhance durability and prevent damage. Regular maintenance, such as flushing the unit to eliminate mineral buildup, can greatly extend its lifespan and guarantee peak performance. Additionally, look for units with stainless steel heat exchangers, as these materials resist corrosion and add to long-term reliability. Finally, pay attention to warranties, which typically range from 1 to 15 years, reflecting the expected durability and reliability of your chosen model.

Smart Technology Integration

As you explore high-efficiency tankless water heaters, considering smart technology integration can greatly enhance your experience and convenience. Look for models with Wi-Fi connectivity, allowing you to control temperature settings and monitor energy usage from your mobile device. Advanced error code technology helps you quickly diagnose malfunctions, reducing maintenance time and hassle. Some systems offer real-time tracking of water flow and heater operation, giving you valuable insights into performance. Smart temperature controls prevent cold water bursts during back-to-back usage, ensuring consistent comfort. Additionally, integrated leak detection systems alert you to potential leaks early, protecting your home from water damage. With these features, you can enjoy a more efficient and worry-free water heating experience.

Size and Space Considerations

Choosing the right size and space for your high-efficiency tankless water heater is essential to maximizing its performance and convenience. First, determine the flow rate your household needs, typically ranging from 4.7 to 11.1 GPM, based on the number of fixtures in use. Next, assess your available installation space; these units are compact and can fit into smaller areas, often taking up less than one-third of the space required by traditional tanks. Confirm the installation type aligns with your home’s layout, as some models are designed for indoor or outdoor use. Also, consider the unit’s weight, which can range from 19 to 60 pounds, and check gas line compatibility and venting requirements to streamline installation.

Fuel Type Options

When selecting a high-efficiency tankless water heater, the fuel type you choose can greatly influence both performance and cost. You typically have two options: natural gas and propane. Natural gas units often deliver a higher BTU output, which means faster heating and greater flow rates. However, if you live in a rural area without natural gas lines, propane can be a reliable alternative for on-demand hot water. It’s crucial to evaluate energy costs as well; natural gas is usually cheaper than propane, affecting your overall expenses. Don’t forget to check local regulations and the availability of fuel sources, as these can impact both the installation process and long-term usage of your tankless water heater.