Upgrade to a tankless water heater

Why? A typical water heater continually heats water in a storage tank so that it is always available — similar to keeping your coffee pot warm all day. An on demand water heater is more efficient because it does not have a tank. Instead, it creates hot water only when needed or "on demand," thus reducing the heat loss associated with a traditional water heater.
Good to know:
  • A gas demand water heater can be used in place of, or to supplement, a conventional water heater.
  • Gas demand water heaters can be appropriate in small and large homes, but larger homes may need multiple demand water heaters.

    What to look for: The EnergyGuide label to compare models.

    For larger families: If you have spikes in your water heating load, such as multiple simultaneous or consecutive showers, a single demand water heater may not keep up with your needs. Think about installing multiple demand water heaters throughout your home to address this challenge.

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Save up to $115 per year

Rebate: National Grid offers an $800 rebate for installing an on-demand tankless gas water heater with electronic ignition and an Energy Factor of .94 or higher. A $500 rebate is available for models with an Energy Factor of .82 or higher. Learn more about all our heating rebates.