Natural gas tankless water heaters are becoming the go-to appliance for providing hot water. They heat water on demand, saving on utility bills, and they have a small footprint. Tankless water heaters also last longer than storage tank models, require less maintenance and have minimal flooding risk.

Tankless water heaters can be installed in multiple interior locations and even outdoors. Models are now available that can withstand the elements, as well as insects, animals and debris. An outdoor installation frees up even more space for basements, garages or utility rooms. Plus, potential risks associated with leaks or minor malfunctions are minimized when the system is outdoors.

Indoor installations are either mounted on a wall or placed on the floor, depending on the model, available space and local regulations. Here are some options to consider.

Basement

In many cases, this is the best location if it's close to the main water and natural gas lines and the main electric panel. This location usually provides easy access for maintenance. Additional ventilation may be required to ensure safe operation. Installation is usually on the wall, saving floor space. To keep water pipes from freezing, make sure the basement is well insulated and maintains room temperature.

Bathroom

Installing tankless water heaters near the points of use can help reduce the amount of time it takes for hot water to reach the faucet or shower head. Homeowners will never have to worry about running out of hot water. However, these installations can be more complex, requiring ventilation through the roof or an exterior wall and additional plumbing work.

Laundry room

Another point-of-use location can reduce the cost of washing clothes. With consistent hot water temperatures, clothes are always clean. As with bathroom locations, there must be enough space and ventilation, with access to the natural gas line and electricity.

Garage

Installing a water heater here can help reduce noise in the living areas. Installation may be easier. However, the garage must have enough circulation to prevent the buildup of carbon monoxide. Check local regulations for safety requirements. If the garage is too far away from the point of use, a slower flow rate can result. Garages must maintain a constant temperature to maintain the water heater’s performance.

Choosing the optimum location ensures that the water heater performs at its best, providing homeowners with hot water when they need it. Under-stair spaces, storage rooms, closets and pantries are other options for smaller homes. However, all locations must provide easy access for routine maintenance and repair work. Remember that the farther the water has to travel to the faucet, the more water and energy are needed.

A whole-house heater may be the best option, which requires proper sizing to meet all hot water needs. For larger floor plans, multiple tankless water heaters may be required.

Make sure the units you install are ENERGY STAR®-certified. ENERGY STAR natural gas tankless water heaters are independently certified to use less energy than standard models.