There is a fair amount of debate over which type of water heater is better, gas, electric or tank.less. In truth, there is no one "best" water heater, only that which is best for the individual home.

- Natural gas tends to be the preferred fuel source, as it is not only efficient but also quite affordable and clean-burning. However, it requires gas piping and proximity to a gas main.
- Electricity is available just about everywhere and is a strong alternative. Not every homeowner will have access to natural gas. However electric water heaters can cost more to operate because of the price of electricity.
- Tankless water heaters are also called "on-demand" water heaters, due to the fact that they heat only the water that you need, when you need it. This helps to boost efficiency. These systems cost much more upfront than tank models, but also offer great energy savings over time.