Tankless heaters are good for some specific point-of-use applications, such as when distance from a centralized tank heater makes it hard or inconvenient to get a sufficient supply of hot water to a kitchen or bathroom. In this case, you could install a tankless heater right in that room.

Otherwise, we recommend using a traditional tank heater and taking steps—like wrapping both the tank and the water pipes with insulation and installing heat traps on the pipes where they exit the top of the tank—to ensure it will operate as efficiently as possible.

If your old water heater is a gas unit, consider replacing it with a 30-gallon or larger electric model and you might qualify for CWLP's Water Heater Rebate. To be eligible for the rebate, you must be a CWLP residential electric customer and must be pre-certified to participate in the program.