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Purchasing a new water heater can be a difficult and confusing process. Modern hot water heaters include numerous high-tech and smart features designed to help you monitor and control your appliance and increase efficiency, so there may be much more to learn about when making a decision.

Electric hot waters are a great investment because the units are much more environmentally sustainable than their natural gas counterparts, and may qualify you for tax credits or rebates. Below we’ve ranked the best water heaters and outlined some key factors to consider when determining the best product for your home.

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A.O. Smith EG12-50R55DV

The A.O. Smith EG12-50R55DV electric water heater set itself apart from the competition with its compact size, high energy efficiency and intelligent design. This 50-gallon water heater features an Energy Smart mode which reacts intelligently to hot water usage to automatically reduce standby heat loss when you are not using hot water. Ideal for a three to four person household, this water heater is just over four feet tall and is ideal for small spaces like closets or under staircases.

Rheem XG50T12DU38U2

The Energy Star Certified Rheem XE50T12DU38U2 is an excellent choice for residents of Utah or most counties in California which require Ultra Low NOx water heaters. This 50-gallon environmentally-friendly natural gas water heater is designed to serve households of three to five people, reduce maintenance and work more efficiently than other heaters.

A powered flue damper closes when the burner is not operating, which prevents heat loss, while an electronic ignition system makes the startup simpler, safer and removes the need for a pilot light.

Rheem XE50T10H45U0

The Rheem ProTerra Hybrid Electric Water Heater (XE50T10H45U0) may be the most expensive water heater we rated, but it more than makes up for its cost with great energy efficiency. With a UEF (universal energy factor) of 4.0, this Rheem water heater will pay for itself within the first two years by using less energy than a 100w light bulb.

With Wi-Fi-control, a digital display, and an “away” mode to reduce water heating costs while out of town, this Rheem appliance is easier to control for the homeowner than any other water heater on the market.

Rheem XE50T12CS55U1

The Rheem Gladiator brand offers simple, affordable, intelligent water heater design for a homeowner on a budget. With an excellent 12-year limited warranty, a three-year full in-home labor warranty and a low price, homeowners can feel good about purchasing a water heater from this trusted company.

The Rheem Gladiator does not have a digital display but can be controlled by app via Wi-Fi, including hands-free voice control to check the hot water availability and control the temperature. The app also reports when the unit requires maintenance.

If you’re looking for an incredibly durable, high capacity electric water heater for your large home or commercial property, look no further than the Rheem Marathon Heavy Duty (MHD85245). This 85-gallon Rheem water heater provides an unparalleled 91 gallons of hot water in the first hour and is capable of delivering temperatures up to 180 degrees Fahrenheit for high temperature applications.

The tank’s seamless blow-molded design is impervious to rust and corrosion and the bowl-shaped bottom allows complete, easy draining of sediments when cleaning.

Gas and electric water heaters each have numerous advantages and disadvantages, but any comparison is complicated by additional myriad factors. If environmental sustainability is key for you, an electric water heater is the best option as electric units are much more efficient and don’t directly depend on fossil fuels to operate.

The cost of operating an electric water heater can be much higher than a natural gas water heater counterpart. In a power outage, a gas water heater will continue to run. Electric water heaters—especially Energy Star Certified ones—often offer federal and even state level tax credits which may save you money. These savings may not appear to be much at first, but run a careful calculation before buying—you may be surprised.

Tankless water heaters require significant cost and labor to install and set-up, but the energy-savings in the long run can be well worth the expense. Tankless water heaters provide an endless supply of hot water which never sits in a tank that may pool or contain rust or sediment build-up. To learn more about tankless water heaters, check out our Best Gas Tankless Water Heaters of 2022 .

Tank-style water heaters, on the other hand, are easy and inexpensive to install and can deliver hot water much more quickly than tankless water heaters. Tank-style water heaters also have a more consistent flow rate than tankless, which allows you to more consistently supply hot water to multiple appliances and taps at the same time—but not on endless supply.

When choosing the best hot water heater for your home, you’ll also have to find the best tank capacity for your household. This is an easy calculation based on the number of people in your house:

You should also consider the hot water heater’s first hour rating (FHR), which describes how much hot water a tank can produce in a single hour when fully heated. The FHR should meet or exceed the number of gallons of hot water needed for any and all simultaneous activities that your household may perform. A few estimates of hot water use can help you calculate the best FHR for your home:

One final determination to make when selecting a new hot water heater for your home is in the ease of use for your new appliance. Many modern electric hot water heaters come with digital displays to help you monitor and control your hot water heater. Others may come with an app and be controllable via Wi-Fi. Still, others are smart home enabled and can communicate with your other smart devices, including Amazon Alexa (yes, you can talk to your water heaters now).

While these may not be your key choices when finding a new hot water heater, the extra functionality may be an important consideration to make your life easier down the road.

To determine the best water heater ranking, the Forbes Home Improvement editorial team analyzed third-party data on 23 of major products, with each product’s star rating determined by evaluating a variety of metrics, including:

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A typical residential hot water heater should last between six and 12 years. Electric hot water heaters can last two to three years longer than gas water heaters because of cleaner operation and more efficient design

A few key signs a hot water heater is at the end of its life include: rusty or cloudy water (which may be caused by corrosion or sediment deposits in the tank), a hot water shortage with water not lasting as long as it used to or taking longer to arrive to the tap and varying water temperatures forcing you to continue adjusting the dial.

Manufacturers recommend flushing your water heater every six months or so to clear the tank of sediment build-up and refresh the water inside. In an environment with hard or harder water, you should flush more often as the mineral build-up will be greater. If you are a confident DIY-er you can flush your water heater yourself, otherwise we recommend hiring a professional.

Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency.

Lexie is an assistant editor who is responsible for writing and editing articles over a wide variety of home-related topics. She has almost four years’ experience in the home improvement space and harnessed her expertise while working for companies like HomeAdvisor and Angi (formerly Angie’s List).