Why More Homeowners Are Choosing Tankless Water Heaters in 2025
In 2025, the demand for smart, energy-efficient home upgrades continues to rise — and at the top of the list is the electric tankless water heater. As more homeowners seek ways to cut energy costs, free up space, and enjoy consistent hot water, tankless systems are quickly becoming the go-to solution.
But what exactly makes them so appealing? And how do electric tankless hot water heaters compare to tankless gas water heaters?
Let’s dive into the key reasons why whole house electric tankless water heaters are seeing a surge in popularity across American households this year.
Endless Hot Water, On Demand
One of the most appreciated benefits of a tankless hot water heater — whether electric or gas — is the ability to provide instant hot water exactly when you need it. Unlike traditional models that rely on a limited tank, these on-demand water heaters heat water as it flows through the unit. That means no more running out of hot water during a shower or while doing laundry and dishes at the same time.
This is a major reason why both electric and gas on demand water heaters have become household essentials in 2025.
Energy Efficiency = Lower Utility Bills
A top reason people are switching is energy savings. Traditional tank systems constantly maintain the water temperature, wasting energy in the process. In contrast, an electric tankless water heater only uses power when hot water is needed — minimizing waste.
The best electric tankless water heaters are highly efficient, with self-modulating technology that adjusts energy usage based on demand. That translates to lower monthly utility bills and a smaller environmental footprint.
Compact, Space-Saving Design
Say goodbye to bulky tanks. A whole house electric tankless water heater mounts neatly to the wall, freeing up valuable space in closets, garages, or utility rooms. Whether you live in a city condo or a suburban home, the slim profile is a welcome upgrade.
Longer Lifespan & Cleaner Water
Tankless units typically last up to 20 years — almost double the lifespan of traditional tank heaters. And without a tank, there’s no risk of sediment buildup, meaning you get cleaner, fresher water with every use.
This benefit applies to both electric and gas tankless water heaters, though electric models tend to require less maintenance over time.
Lower Upfront Costs and Easy Installation
Many homeowners are surprised to find that electric tankless water heater installation is relatively simple — especially compared to gas models, which often require venting and gas line adjustments.
As a result, the electric tankless water heater cost (unit + installation) is often more affordable for average households. It’s a practical and budget-friendly solution for those looking to upgrade their home’s hot water system.
Smart Technology and Temperature Control
Modern electric models come equipped with digital displays, temperature precision, and sometimes WiFi connectivity. These features make it easy to monitor your usage, fine-tune performance, and avoid unnecessary energy consumption — all from the palm of your hand.
Electric vs. Gas: Which One’s Right for You?
If you have access to natural gas and want higher flow rates for large homes, a tankless gas water heater could be the right fit. However, for homeowners looking for a lower installation cost, easier setup, and reliable performance, the best electric tankless water heater might be the smarter long-term choice.
When it comes to tankless water heater gas installation, it typically requires venting and more planning, while electric systems can often be installed more quickly and flexibly.
Final Thoughts
As utility prices climb and sustainability becomes a priority, it’s no surprise that more homeowners in 2025 are choosing electric tankless water heaters. They deliver endless hot water, reduce energy use, and last longer — all while taking up less space.
Ready to upgrade? Browse our selection of high-performance Thermomate electric tankless water heaters, built for comfort, reliability, and efficiency. Whether you’re outfitting a new build or replacing an outdated tank, now is the perfect time to make the switch.
