Why Electric Tankless Water Heaters Are In Demand
Tired of running out of hot water—or paying high utility bills? You’re not alone. More and more homeowners are turning to the electric tankless water heater as a smarter, more efficient way to get hot water on demand.
Unlike traditional water heaters that store and continuously heat a large tank of water, tankless electric water heaters activate only when you turn on the tap. This means you're not paying to heat water you’re not using—translating to energy savings, lower utility costs, and a longer-lasting system.
Electric models, in particular, are rising in popularity thanks to their:
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Compact, space-saving design
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Easy installation (especially in all-electric homes)
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Lower upfront costs compared to gas tankless systems
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High efficiency and minimal maintenance needs
But with so many models, sizes, and features to choose from—not to mention questions about installation, cost, and whether to go gas or electric—it can be overwhelming to know where to start.
Table of Contents
- What Is an Electric Tankless Hot Water Heater?
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Small Electric Tankless Hot Water Heaters for Compact Spaces
- Why Hire Newwrx Plumbing for Installation
What Is an Electric Tankless Hot Water Heater?
An electric tankless water heater—also known as an on-demand water heater—heats water only when you need it, without storing a supply of hot water in a tank.
Unlike conventional units that keep water hot 24/7 (and waste energy doing so), a water heater electric tankless system activates the moment you turn on a tap.
How It Differs from Traditional Water Heaters
Traditional electric water heaters use a large tank (typically 30–80 gallons) to store heated water. This creates “standby energy loss”—where energy is used to maintain the tank’s temperature even when you're not using hot water.
In contrast, an electric water heater tankless model heats water on demand, offering several key differences:
Best Electric Tankless Hot Water Heaters in 2025
To make your decision easier, here are some of the top-performing electric tankless hot water heaters in 2025, based on efficiency, performance, reliability, and customer reviews.
Stiebel Eltron Tempra Plus Series
Known for its German engineering and ultra-reliable performance, the Stiebel Eltron Tempra Plus is a favorite for whole-house use. It features advanced flow control technology to maintain consistent water temperature, even when multiple outlets are running.
EcoSmart ECO 27
One of the most popular models in the U.S., the EcoSmart ECO 27 is ideal for mid-size homes in moderate climates. It’s known for excellent energy efficiency and affordability.
Rheem RTEX-18
A reliable name in water heating, Rheem’s RTEX line offers solid performance and good flow rates. The RTEX-18 is a compact, powerful option that’s great for smaller homes or apartments.
Bosch Tronic 6000C WH27
Bosch’s Tronic 6000C delivers consistent performance with a durable design and high-quality materials. It’s ideal for homeowners who want solid brand backing and a reliable system for long-term use.
Eemax EEM24036
If you need power and performance, the Eemax EEM24036 is a heavy-duty electric tankless unit built to handle larger homes or higher water demands.
Each of these models has its own strengths, and the best choice comes down to your hot water usage and local energy considerations.
Choosing a Whole House Electric Tankless Hot Water Heater
If you’re looking for a single solution to supply endless hot water throughout your entire home, a whole house electric tankless hot water heater may be exactly what you need. These systems are powerful enough to deliver hot water to multiple fixtures simultaneously—think showers, sinks, dishwashers, and laundry machines—all without running out.
Small Electric Tankless Hot Water Heaters for Compact Spaces
Compact units are designed for point-of-use applications, meaning they’re installed close to where hot water is needed—such as under a sink or near a single shower.
Some plug directly into standard 120V outlets, while others require a dedicated 240V line for faster heating and higher flow rates.
Commercial Electric Tankless Hot Water Heater Options
Unlike residential units, commercial-grade electric tankless systems are engineered for higher flow rates, greater durability, and continuous operation under heavier loads.
Cost of Electric Tankless Hot Water Heaters: What to Expect
Understanding the electric tankless hot water heater cost is a key part of deciding whether this upgrade is right for your home or business. Let’s break down the costs involved so you know what to expect.
The cost of the unit itself varies based on size, brand, and performance:
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Small, point-of-use models: $150 – $400
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Mid-range residential models: $500 – $900
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Whole-house units: $900 – $1,800+
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Commercial-grade models: $1,500 – $3,500+
Installation costs also vary depending on several factors:
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Labor and setup: $500 – $1,500
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Electrical upgrades (if required): $500 – $2,000+
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Permitting and inspections: $100 – $300
While this may seem like a significant investment, it’s important to consider long-term savings. Electric tankless systems typically reduce energy bills up to 34% compared to traditional electric tank systems. And with a lifespan of up to 20 years—nearly double that of many tank models—the cost of ownership over time is often lower.
Other savings to keep in mind:
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No need for regular tank flushing or sediment maintenance
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Reduced risk of costly leaks or ruptures
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Space savings that can free up square footage in tight mechanical rooms
Additionally, some homeowners may qualify for energy-efficiency rebates or local incentives, especially when replacing outdated water heaters with ENERGY STAR–rated models.
Why Hire Newwrx Plumbing for Installation
Choosing the right electric tankless water heater is just the first step—having it installed correctly is just as important. These systems require precise electrical work, correct sizing, and expert configuration to function efficiently and safely. That’s where Newwrx Plumbing comes in.
As a trusted local plumbing company serving Sacramento, South Lake Tahoe, and surrounding areas, Newwrx Plumbing offers professional electric tankless water heater installation backed by years of hands-on experience. We don’t just sell or install units—we tailor each system to your home’s unique needs.
Here’s why homeowners and businesses trust us:
Expert Sizing and Custom Recommendations
Every home is different, and there’s no one-size-fits-all solution. Our team will calculate your household’s peak water demand, consider your climate, and assess your electrical panel to recommend the perfect unit—whether it’s a small point-of-use heater or a whole house electric tankless hot water heater.
Licensed, Code-Compliant Installation
Improper installation can lead to performance issues, code violations, or even safety risks. Our licensed plumbers and electricians ensure your system is installed to the latest safety standards and local building codes. We handle permits, inspections, and every detail so you don’t have to.
Electrical System Compatibility Checks
Tankless electric systems often require significant amperage. We’ll evaluate your electrical panel and, if needed, coordinate upgrades to ensure your new system runs safely and efficiently—without tripping breakers or overloading circuits.
Long-Term Support and Service
When you work with Newwrx Plumbing, you're not just getting a product—you're gaining a reliable service partner. We provide maintenance, troubleshooting, and repairs for all major brands of electric tankless water heaters, so you always have support if something goes wrong.
Local Knowledge, Fast Service
We understand the local building codes, utility requirements, and climate-related needs specific to homes and businesses in Sacramento, South Lake Tahoe, and nearby areas. That local insight allows us to deliver fast, dependable, and personalized service every time.
Contact Newwrx Plumbing today to schedule your consultation and get a custom quote for your new electric tankless hot water heater. Let’s upgrade your comfort, lower your energy bills, and ensure you never run out of hot water again.
