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Residential Water Heater: Key Insights to Make the Right Choice

By Editorial Team

Updated on January 30, 2025

Water heaters are indispensable devices fitted inside every household. They allow dwellers access to hot water, which is essential for showering, washing dishes, and other daily uses. Water heaters can't be separated from housing quality and convenience.

What Is the Point of a Water Heater?

Woman in bathtub

The primary purpose of a water heater is to heat domestic water. It’s rather straightforward: Cold water is fed into a tank and heated by either electrical resistance, gas-fired burners, or renewable energy. Next, it’s held in a storage tank, allowing homeowners access to a supply of domestic hot water, which can be used at any given time. 

Before purchasing a water heater, it’s important to gain insight into the different units available to choose the one that best suits your needs. 

What Is the Most Common Residential Water Heater?

hot water tap

Choosing a water heater adapted to your needs may seem like a complex undertaking when faced with a slew of different available models. To make a well-informed decision, it’s important to assess a few key factors, such as your hot water use, the size of your home, the available energy (electricity, gas, solar), and your budget.

Whether it’s an electric, gas, thermodynamic, or solar water heater, each device has model-specific advantages that meet different needs. Understanding their particularities allows you to choose the most efficient and cost-effective device for your home.

Comparing Water Heaters: Which Is Best?

Let’s take a look at the most common water heaters, their advantages, drawbacks, and how they’ve outperformed other devices.

Electric Water Heater

Electric water heaters are easy to install, affordable, and perfectly suited to many household needs.

  • Tankless model: Ideal for small homes or those consuming below-average quantities of hot water (e.g., for one to two dwellers).

  • Storage tank: Designed for families due to its 40–60-gallon tank, meeting daily household needs.

Gas-Fired Water Heater

As for a gas-fired water heater, it heats quickly and suits homes hooked to a natural gas or propane supply. However, it must be regularly maintained and properly ventilated to release emissions generated.

  • Storage tank: Stores hot water in a tank.

  • Tankless: Generates hot water on demand, limiting heat loss.

Thermodynamic Water Heater (Hybrid)

A thermodynamic water heater features a heat pump, harvesting the energy released in the ambient air and heating water.

  • Advantages: Reduces your energy consumption and carbon footprint.

  • Drawbacks: Less efficient when the temperature outside drops below 5 °C, requiring the use of electric resistance thereafter.

This model is especially advantageous for well-insulated homes and financially mindful homeowners who are looking to save down the line.

Solar Water Heater

Solar water heaters use solar energy to produce hot water, courtesy of rooftop solar panels.

  • Advantages: Allows for energy savings and eco-conscious practices.

  • Downsides: High upfront cost and relies on sunrays, which can be challenging during Canada’s harsh winters.

This device is often paired with an electric or gas-fueled model to ensure a constant hot water supply.

How to Make the Right Price-Based Choice?

The cost of a water heater varies based on the type of device, its storage capacity (e.g., 40 or 60 gallons), and installation fees.

When selecting a water heater, it’s essential to consider your water use, budget, and storage tank capacity. For example, a 60-gallon storage tank is often recommended for families of four, whereas tankless water heaters may be best suited to specific or short-term needs. Lastly, consider maintenance fees when budgeting to ensure your device lasts a long time and allows you to save down the line.

How Much Are Residential Water Heaters?

Here’s an overview of the most common devices available and their price points:

Type of Water Heater

Capacity

Average Cost (Device)

Installation Cost

Total Estimated Cost

Electric

40–60-gallon

$300–$700

$300–$500

$1,200

Electric (tankless)

Tankless

$200–$800

$300–$500

$500–$1,300

Gas (storage tank)

40–60-gallon

$700–$1,500

$500–$800

$1,200–$2,300

Thermodynamic

40–60-gallon

$1,500–$3,000

$600–$1,000

$2,100–$4,000

Solar

60+ gallons

$2,500–$5,000

$1,000–$2,500

$3,500–$7,500

Installing a Home Water Heater Tank

Installing a Home Water Heater Tank

Installing a water heater, whether electric, gas-fueled, or thermodynamic, is crucial for ensuring its proper functioning and safety. While some models are straightforward to install, hiring a qualified professional is still strongly advised. 

Why Hire a Professional?

A specialist will know how to:

  • install your water heater according to current safety standards, including required clearance between the device and the water or heat supply output;

  • hook up the necessary lines to ensure an optimal supply of hot water;

  • adjust the water temperature and test the water flow to ensure maximum comfort;

  • correctly install a vertical or horizontal water heater based on the available space in your house.

Installation Steps

  • Site assessment: Choose the most appropriate and safest place to install the water heater.

  • Hook up to water and energy supply: Connect to cold water and hot water supply and gas or electricity line.

  • Install safety systems: Install a safety valve and drainage system to prevent leaks or excessive pressure.

  • System testing: Check the water flow and temperature and ensure a leak-proof installation.

The Advantages of Hiring an Installation Professional

  • Guaranteed safety: A poorly carried out installation can lead to water leaks, heat loss, or electrical hazards.

  • Optimized performance: A professional ensures the device functions at its peak for optimal energy use.

  • Upheld warranties: Some warranties mandate a professional installation to ensure validity.

Having your water heater installed by a specialist prevents complications, prolongs the device's lifespan, and ensures a reliable hot water supply for your home.

When and How to Replace a Water Heater?

Water heater

Regular maintenance is essential to maximize your water heater’s lifespan and avoid costly repair fees. However, when wear overrides everything else, it’s time to consider replacing your device. Here’s how to maintain your device, including telltale signs of wear.

Best Practices for Water Heater Maintenance

Proper care and upkeep allow the water heater to maintain its efficiency while reducing the risks of breakdown or power failure:

  • Flush yearly: Drain the tank to eliminate sediment buildup, which can hinder water flow, resulting in heat loss. 

  • Temperature testing: Check that the thermostat is set between 55 °C and 60 °C for energy-saving purposes.

  • Inspect the safety valve: Regularly test the pressure relief valve to prevent excess pressure.

  • Check the anode rod: This rod protects the tank against corrosion. Replace it every 3–5 years to prolong the device’s service life.

  • Professional servicing: A professional can inspect all heating parts, spot leaks, and deep clean the device to ensure that the water heater is functioning properly.

Whether you’ve purchased an electric, gas-fueled, or thermodynamic model, preventative maintenance can reduce your electricity bill and prevent unforeseen mechanical issues, prolonging the water heater’s lifespan.

When Should You Replace Your Water Heater?

Even when properly maintained, a water heater will wear over time. Here are the most common telltale signs indicating the device’s need for replacement:

  • Discoloured or smelly water: Excessive sediment buildup or corroded interior.

  • Slow water flow: This can be a sign of a clogged tank or that the device is nearing the end of its lifetime.

  • Unusual noises: Cracking or whistling can be a sign of a limescale buildup.

  • Visible leaks: All leaks around the tank indicate a major issue.

  • Water takes longer to heat up: Defective resistance wire or thermostat can impede hot water output.

On average, an electric water heater lasts 10 to 15 years, whereas a gas-fueled model has a lifespan of 8 to 12 years. If your device is nearing the end of its lifetime or repair costs are too high, replacing it might be the best course of action.

Common Repairs to Consider

Before replacing your entire water heater system, note that certain system failures can be repaired:

  • Replacing the resistance wire if the water doesn’t heat up properly.

  • Repairing or adjusting the thermostats in case of an unstable temperature.

  • Cleaning the tank to eliminate sediments.

  • Replacing for better savings.

Investing in a new water heater can be the most cost-effective option in the long run, especially if you’re looking into purchasing an energy-efficient model, such as a thermodynamic or Energy Star-certified device. Doing so means saving on monthly energy costs, improving household comfort, and ensuring a need-adapted hot water output.

You can benefit from an efficient water heater for years by combining rigorous maintenance and monitoring signs of wear.

Make the Right Choice, and Prioritize Your Comfort

A water heater is an essential household comfort device, and choosing the most appropriate one ensures energy savings and long-term optimal use. Each model meets specific needs, whether electric, gas-fueled, thermodynamic, or solar.

By combining professional installation, regular upkeep, and special attention to signs of wear and tear, you can prolong your device’s lifespan and ensure a constant supply of domestic hot water. To fully benefit from the advantages of an efficient water heater, make a well-informed choice that meets your daily use, budget, and lifestyle.

Frequently Asked Questions (FAQ)

What is the average size water heater for a house?

The device’s capacity depends on the number of occupants and household needs. A 40-gallon water heater suits 2–3 people, whereas a 60-gallon model is ideal for a family of four. For five or more people, opt for an 80-gallon tank or bigger. Moreover, consider the number of bathrooms in your home to avoid hot water shortages.

Which water heater best suits a family of four?

A 60-gallon water heater provides enough hot water for a family of four and consumes a standard amount. However, if your household uses a lot of hot water at once, a model with a bigger tank capacity might be better suited.

How best to choose a tankless water heater?

A tankless water heater is ideal for small apartment units or those with low hot water usage. It heats water on demand, eliminating heat loss. Check the system’s performance level and the necessary water flow to supply all household water points.

What is the most reliable water heater brand in Canada?

In Canada, leading brands include Rheem, Bradford White, and Giant. These brands are known for their reliability, durability, and long warranties.

How do you choose the right pool water heater?

An electric water heater suits small pools, whereas a gas-fueled one heats large bodies of water faster. A heat pump is also an energy-efficient option for maintaining a stable water temperature.


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