A water heater usually warns you before it goes: rusty water, a rumble from the tank, hot water that runs out faster than it used to, or moisture pooling at the base. Any of those is worth a phone call while it is still a repair.
Tankless: endless hot water, if your house suits it
Tankless heaters do not store hot water. They heat it as it flows, so you only spend energy when you actually want hot water. Here in Tennessee natural gas and propane are usually the right fuel, though an electric tankless is occasionally the answer.
The benefits are real: energy savings from no standby loss, hot water that genuinely does not run out no matter how many showers run back to back, and a unit about the size of a briefcase on the wall instead of a tank taking up half the utility room.
Hybrid heat pump: the one most people should look at
If your home has no gas or propane, or more than two people live there, tankless often is not the practical choice. A heat pump water heater is. These use roughly a quarter of the energy of a standard electric unit, come in 50, 66 and 80 gallon sizes, and connect to your phone so you can change temperature, switch modes and watch energy use from wherever you are.
Essency: the best of both
An Essency heater delivers up to 80 gallons on demand while occupying the footprint of a standard 50-gallon tank. It is smart-enabled like the hybrids, and its turbo mode temporarily lifts supply to around 100 gallons — which is exactly what you want with a house full of guests at Christmas.
Both the hybrids and the Essency have a vacation mode that drops power use while you are away.
Which one is right?
Ask yourself whether your household staggers showers to avoid running out, whether your bath goes cold before it is full, and whether you care more about upfront cost or running cost. Tell us your answers and we will tell you which unit fits — including when the honest answer is a plain tank.