Water heating can account for a significant portion of your household’s energy consumption, so investing in a high-efficiency water heater can save you money over time. High-efficiency models are designed to reduce energy consumption while ensuring that you always have a reliable supply of hot water. Whether you’re upgrading your current water heater or installing a new system, finding the best high-efficiency water heater is essential for both performance and cost savings.
In this guide, we’ll explore the best high-efficiency water heaters of 2025, considering factors such as energy savings, performance, reliability, and overall value. From traditional tank water heaters to modern tankless and hybrid systems, we’ve got you covered with the top options on the market.
Why Choose a High Efficiency Water Heater?
High-efficiency water heaters are designed to use less energy while providing the same, if not better, performance than standard models. Here’s why upgrading to a high-efficiency model is a smart decision:
- Lower Utility Bills: High-efficiency models are designed to reduce energy consumption, which means lower electricity or gas bills.
- Environmental Impact: By using less energy, high-efficiency water heaters help reduce your carbon footprint, making them an eco-friendly choice.
- Long-Term Savings: Although high-efficiency models can come with a higher upfront cost, they pay off in the long run through energy savings and reduced operating costs.
- Improved Performance: Many high-efficiency water heaters offer faster recovery times, ensuring that you always have access to hot water when you need it.
Top 5 Best High Efficiency Water Heaters of 2025
After reviewing various models based on energy efficiency, performance, and customer feedback, here are the top 5 best high-efficiency water heaters of 2025:
1. Rheem Performance Platinum 50-Gallon Hybrid Water Heater
The Rheem Performance Platinum Hybrid Water Heater is one of the best high-efficiency models available today. Combining heat pump technology with electric heating elements, this unit offers significant energy savings without sacrificing hot water performance.
- Capacity: 50 gallons
- Energy Efficiency: Up to 3x more efficient than standard electric models (Energy Star certified)
- Smart Features: Wi-Fi connectivity for remote control via the Rheem app
- Warranty: 12-year limited warranty
This hybrid model is perfect for homeowners who want to reduce energy consumption while still ensuring a steady supply of hot water. Its self-cleaning feature also helps prevent mineral buildup, enhancing the unit’s longevity.
2. A.O. Smith Voltex Hybrid Electric Water Heater
The A.O. Smith Voltex Hybrid Electric Water Heater is another highly efficient model that combines a heat pump with traditional electric heating elements to maximize energy savings. This unit is ideal for households with higher water usage and is known for its durable construction and reliable performance.
- Capacity: 50 gallons
- Energy Efficiency: Energy Star certified with a high energy factor (EF)
- Temperature Control: Adjustable temperature settings for customized hot water
- Warranty: 10-year limited warranty
The Voltex Hybrid Water Heater provides excellent energy efficiency and performance, making it perfect for families who need consistent hot water without high energy costs. Its flexible settings also allow homeowners to optimize energy use based on their needs.
3. Stiebel Eltron Tempra Plus 24 kW Tankless Water Heater
The Stiebel Eltron Tempra Plus is one of the top-rated tankless water heaters on the market. Known for its energy efficiency, it heats water on demand, eliminating the need to store hot water and reducing energy waste.
- Capacity: Ideal for homes with multiple bathrooms or high hot water demand
- Energy Efficiency: High energy factor (EF) with 99% efficiency
- Smart Features: Precise digital temperature control for consistent hot water
- Warranty: 7-year limited warranty
The Tempra Plus 24 kW is perfect for large households or homes with high hot water demands, providing continuous hot water without the risk of running out. Its high efficiency ensures that energy is used only when needed, reducing waste.
4. Bosch Tronic 3000 4-Gallon Electric Mini-Tank Water Heater
The Bosch Tronic 3000 4-Gallon Electric Mini-Tank Water Heater is a compact and highly efficient model that’s perfect for point-of-use installations, such as under a sink or in a small apartment. It provides instant hot water and helps save energy by heating water on demand.
- Capacity: 4 gallons
- Energy Efficiency: High-efficiency design with minimal standby heat loss
- Installation: Can be installed in tight spaces, ideal for small homes or apartments
- Warranty: 6-year limited warranty
The Bosch Tronic 3000 is perfect for homes that need hot water at a single location. Its compact size and high efficiency make it an excellent option for areas with limited space or for those who need a supplementary hot water source.
5. Rinnai V65iN Tankless Water Heater
The Rinnai V65iN is a natural gas-powered tankless water heater that provides high-efficiency performance while saving space. This model is perfect for homeowners looking for endless hot water and energy savings in one package.
- Capacity: 6.6 gallons per minute (GPM)
- Energy Efficiency: High energy factor (EF) with reduced energy consumption
- Smart Features: Wi-Fi connectivity for remote monitoring and control
- Warranty: 12-year limited warranty
The Rinnai V65iN is a great choice for larger households or homes with multiple bathrooms, providing endless hot water while maintaining an energy-efficient profile. Its compact design ensures that it can fit in smaller spaces without sacrificing performance.
How to Choose the Best High-Efficiency Water Heater
When selecting a high-efficiency water heater, consider the following factors to ensure you choose the best model for your home:
1. Household Size and Hot Water Demand
Consider how much hot water your household uses. Larger households or homes with multiple bathrooms will require a higher-capacity unit or a tankless model that can provide an unlimited supply of hot water on demand.
2. Energy Efficiency
Look for water heaters that are Energy Star certified and have high energy factors (EF). Hybrid models and tankless systems are generally more energy-efficient than traditional tank models, helping to reduce your long-term energy costs.
3. Type of Water Heater
Tankless water heaters are ideal for those who want to save space and have an endless hot water supply. Hybrid and heat pump models are also highly efficient and great for reducing energy consumption. Consider your household’s hot water usage patterns to determine the best option for you.
4. Installation and Space Considerations
Consider the space available for your new water heater. Tankless models and hybrid systems are often more compact and easier to install in tight spaces, while traditional tank models require more room.
Conclusion
High-efficiency water heaters are a smart choice for homeowners looking to save on energy bills and reduce their environmental footprint. The models we’ve reviewed above offer excellent performance, energy savings, and long-term durability, making them some of the best options available for 2025.
Ready to upgrade your water heater? Consider one of the top high-efficiency models we’ve highlighted to enjoy a reliable, energy-efficient hot water solution that will save you money for years to come.