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CHOOSING A WATER HEATER

Tank water heaters: gas, electric, atmospheric and power vent

A tank is the simplest water heater to install and usually the cheapest. The fuel sets how fast it recovers; for gas, the vent sets how hard the job is and what it costs.

THE SHORT VERSION

  • A tank keeps a full load of hot water ready and reheats it around the clock. It is usually the cheapest heater to buy and install: Home Depot publishes $1,600–$2,400 installed for a standard gas or electric tank.
  • Electric tanks have two elements, but only one heats at a time, so they recover about half as fast as gas. A 50-gallon electric tank may deliver 62 gallons in its first hour; a 50-gallon gas tank, 89.
  • For gas, the vent decides the job. A same-type atmospheric swap is simplest. Power vent, direct vent and condensing tanks need an outside wall, a 120-volt outlet or a drain, and cost more.
  • High efficiency means condensing. Every gas tank on ENERGY STAR’s list (checked October 4, 2026) is a power-vented model rated 0.86–0.90 UEF, against 0.60–0.73 for the standard gas models in our table.
  • Federal rules shape what you can buy. Since 2015, electric tanks over 55 gallons must perform like heat pumps, with one narrow exception. A 2024 rule, still on the books, extends that to most electric tanks of 20–55 gallons made from May 6, 2029.

A tank keeps hot water ready and pays for it in standby loss

A storage water heater is an insulated steel tank with a heat source. Cold water enters at the top and a dip tube carries it to the bottom. Hot water rises and leaves from an outlet at the top, so the hottest water is always the first water out. A thermostat keeps the whole tank at its set temperature whether or not anyone is using it.

Inside a gas storage water heater Cutaway of a gas tank water heater. Cold water enters at the top and a dip tube carries it to the bottom. A burner under the tank heats the water and exhaust rises through a central flue to the draft hood and vent. Hot water leaves from the top. An anode rod hangs in the tank, a temperature and pressure relief valve sits near the top with a discharge pipe running down toward the floor, and a drain valve is near the bottom. COLD IN HOT OUT Vent to outdoors Draft hood T&P relief valve Anode rod Discharge pipe Drain valve opens if water gets too hot or pressure too high corrodes first so the steel tank doesn’t full size, no valve, runs downhill and ends near the floor Flue Dip tube Gas valve and thermostat exhaust rises through the middle of tank carries cold water to the bottom Burner heats the tank from below hottest water rises coldest sinks
Inside a gas tank. In a gas tank the burner sits under the tank and the exhaust rises through a flue in the middle. Every tank, gas or electric, has a dip tube, an anode rod, a drain valve and a temperature and pressure (T&P) relief valve.

That readiness has a cost. Heat leaks out through the jacket and, on gas tanks, up the flue, all day. This standby loss is why the federal efficiency standards for tanks are written as a sliding scale: the bigger the tank, the lower the minimum rating, because a bigger tank has more surface to lose heat from. It is also why oversizing costs you money; see what size water heater you need.

Gas and electric tanks share the same plumbing. They differ in how they heat, how fast they recover after a run of showers, and what has to be connected to them: a 240-volt circuit for electric, a gas line and a vent for gas.

Electric tanks heat with two elements, one at a time

A standard electric tank has two heating elements screwed through the side of the tank, one in the upper third and one near the bottom. Each has its own thermostat, pressed against the tank wall behind an access panel. Rheem’s technical bulletin describes the usual arrangement as non-simultaneous: “only one of the heating elements, either the upper OR the lower, may heat at a time.”

Inside an electric storage water heater Cutaway of an electric tank water heater. A 240-volt supply enters a junction box on top and is wired to an upper thermostat with a red energy cut-off reset button, then to a lower thermostat. Each thermostat sits against the tank wall and controls its own heating element: one in the upper part of the tank and one near the bottom. Only one element heats at a time. Cold water enters at the top and a dip tube carries it to the bottom; hot water leaves from the top. An anode rod hangs in the tank, a temperature and pressure relief valve sits near the top with a discharge pipe running down toward the floor, and a drain valve is near the bottom. COLD IN HOT OUT T&P relief valve Anode rod Discharge pipe Drain valve opens if water gets too hot or pressure too high corrodes first so the steel tank doesn’t full size, no valve, runs downhill and ends near the floor 240 V supply Upper thermostat Upper element Dip tube Lower thermostat Lower element to a junction box on top goes first; red ECO button is the high-limit cutoff 4,500 W, 240 V carries cold water to the bottom heats the rest of the tank Only one element heats at a time 1. The upper element reheats the top of the tank first. 2. When the top is hot, power switches to the lower element. 3. One 4,500 W element recovers about 21 gallons per hour. hottest water rises coldest sinks element
Inside an electric tank. Power arrives at a junction box on top and goes to the upper thermostat first. When the top of the tank is hot, the upper thermostat hands power to the lower one. The red ECO button on the upper thermostat is a high-limit switch that cuts power if the water overheats.
  1. The upper thermostat has priority

    After a big draw, the upper element heats the top of the tank first, so you get some hot water back quickly.

  2. Then power switches to the lower element

    Once the top is satisfied, the upper thermostat relays power to the lower thermostat, which heats the rest of the tank.

  3. The ECO stands guard

    The energy cut-off (ECO) on the upper thermostat trips if the tank gets too hot. Rheem’s advice: if it trips often, “call your water heater professional.” The parts behind the access panels carry 240 volts.

Because only one element runs, recovery depends on the wattage of one element. Rheem’s spec sheet gives the arithmetic: watts ÷ 2.42 ÷ temperature rise. A 4,500-watt element recovers about 21 gallons per hour at a 90°F rise, roughly half the 43 gallons per hour of a 40,000 BTU/h gas burner. That is why Rheem’s 50-gallon Performance Plus electric tank has a first-hour rating of 62 gallons and Bradford White’s 50-gallon gas tank has 89.

Electric tanks have strengths too. There is no vent, no gas line and no combustion, so they can go in a closet or under a stair where a gas tank could not. Their efficiency rating looks high (UEF 0.92–0.93 on current models from A.O. Smith and Rheem) because almost all the electricity ends up in the water. But UEFs compare heaters only within the same fuel and usage bin, so compare running costs too; see gas vs. electric. ENERGY STAR heat pump tanks typically rate 3.3–4.1, doing the same job on a fraction of the electricity; see heat pump water heaters.

Gas tanks: the vent decides how hard the job is

Every gas tank burns fuel and must send the exhaust outdoors. How it does that splits gas tanks into five families, and the family usually decides what a replacement involves. If the new tank vents the same way as the old one, the installer can usually reuse the existing vent, provided it is sound and correctly sized. If it doesn’t, the job grows.

Five ways a gas tank water heater vents Five rows compare gas tank venting. Atmospheric: hot exhaust rises on its own through a metal vent to a chimney or roof, using room air, no power needed. Power vent: a blower pushes exhaust sideways through an outside wall, using room air, needs 120 volts. Direct vent: a sealed tank near an outside wall takes outdoor air in and sends exhaust out through one wall pipe without a fan. Power direct vent: sealed with a blower, separate intake and exhaust pipes can run long distances. Condensing: extracts extra heat from the exhaust, vents through plastic pipe and needs a condensate drain. Five ways a gas tank vents From simplest and cheapest to most efficient Atmospheric (natural draft) Hot exhaust rises on its own through a metal vent to a chimney or the roof. Uses room air for combustion. No power needed · e.g. UEF 0.64 Power vent A blower pushes exhaust out, often sideways through an outside wall. Uses room air for combustion. Needs 120 V · e.g. UEF 0.72 Direct vent Sealed: one wall pipe brings outdoor air in and takes exhaust out, with no fan, so the tank must sit near the wall. No power needed · e.g. UEF 0.60 Power direct vent Sealed, with a blower. Separate intake and exhaust pipes can run long distances to a wall or the roof. Needs 120 V · e.g. UEF 0.73 Condensing Pulls extra heat out of the exhaust. Vents through plastic pipe and needs a drain for acidic condensate. Needs 120 V · e.g. UEF 0.88–0.90 exhaust combustion air blower Example UEFs: A.O. Smith and Rheem models, 2026.
Five ways a gas tank vents. Atmospheric tanks rely on hot exhaust rising up a metal vent. Power vent tanks push exhaust out with a fan. Direct vent tanks are sealed and take combustion air from outdoors. Condensing tanks add plastic pipe and a drain.
Tank types compared (example 50-gallon models unless noted)
TypeHow it ventsSite needsExample UEFCost vs. atmospheric
ElectricNo vent240-volt circuit0.93 (Rheem Performance Plus)Similar
Atmospheric gasExhaust rises up a metal ventVertical vent, room air; no power0.64 (A.O. Smith GUR-50)Baseline; simplest swap
Direct vent gasSealed; one wall pipe, no fanOutside wall close by; no power0.60 (A.O. Smith GDV-40, 40 gal)Higher
Power vent gasBlower pushes exhaust out a wall120-volt outlet; new vent0.72 (A.O. Smith GPVL-50)Higher
Power direct vent gasSealed; blower; two long pipes120-volt outlet; new vent0.73 (A.O. Smith GPDX-50L)Higher
Condensing gasPower-vented through plastic pipe120-volt outlet; condensate drain0.88–0.90 (Rheem Maximus, A.O. Smith Vertex HV)Highest: about $800 more (DOE)

Sources: manufacturer product pages and spec sheets (UEF as listed, checked October 4, 2026); Rheem, “Gas Water Heater Types Explained” (2026), which says power vent models “typically cost more”; DOE 2024 final rule, Table V.2 (average installed cost in 2022 dollars: $1,432 for a baseline gas tank, $2,241 for the top condensing level, 20–55 gallons). DOE also counts a new vent and, for direct vent, a combustion-air intake as added installation costs. Home Depot’s published range for a standard gas or electric tank is $1,600–$2,400 installed.

Why changing the vent type changes the price

When DOE costed out more efficient gas tanks for its 2024 rule, it added installation costs for power-vented and condensing models that a same-type atmospheric swap doesn’t have: a new vent, a combustion-air intake for direct vent units, concealing vent pipe indoors, condensate removal, and fixing an orphaned furnace. That last one matters in many older homes. An atmospheric water heater often shares a chimney or vent with a gas furnace. Move the water heater to its own vent and the furnace may be left alone in a vent sized for two appliances, which can mean new connectors, a smaller vent or a chimney liner.

  • Power vent and power direct vent tanks need electricity, so they won’t heat water in a power outage, and Rheem notes the fan can make some noise.
  • Direct vent (non-powered) tanks need no outlet but must sit close to an outside wall. A.O. Smith’s ProLine direct vent allows venting up to 80 inches from the wall.
  • Sealed (direct vent) models draw combustion air from outdoors, which suits tight houses and spaces where indoor combustion air is limited.
  • Atmospheric tanks depend on a good draft. Rheem calls carbon monoxide backdrafting “one of the most serious risks” of venting mistakes, which is why vent work belongs to a licensed installer. More in water heater venting.
Top of a gas tank water heater showing the metal flue vent pipe and hot and cold water connections

An atmospheric tank: the metal vent rises from the draft hood on top. If your heater looks like this and the vent is sound, an atmospheric replacement is usually the simplest job.

Top of a gas water heater with vent and water connectionsPhoto: Infrogmation of New Orleans ↗ · CC BY-SA 4.0 ↗

Standard or high efficiency: what you actually get

Efficiency is rated as Uniform Energy Factor (UEF), which DOE adopted in 2017 in place of the older Energy Factor. Compare UEFs only between heaters of the same fuel and the same usage bin (very small, low, medium or high); ENERGY STAR says most conventional heaters fall between 0.63 and 0.95. Find it on the yellow EnergyGuide label or the spec sheet; see how to read the EnergyGuide label.

UEF ≥ 0.81ENERGY STAR minimum for a gas tank of 20–55 gallons, medium draw (0.86 for high draw or over 55 gallons)
51 galMinimum first-hour rating for an ENERGY STAR gas tank
6 yearsMinimum warranty on the system, including parts
71 of 71Residential gas tanks on ENERGY STAR’s list (October 4, 2026) that are power vented or power direct vented

Sources: ENERGY STAR residential water heater key product criteria and certified gas water heater dataset. ENERGY STAR certifies heat pump water heaters but no standard electric resistance tanks.

On October 4, 2026, ENERGY STAR’s certified list held 71 residential gas storage listings, and every one was a power vent or power direct vent model with a recovery efficiency of 91–97%. These are condensing designs, such as Rheem’s Performance Plus Maximus (with a built-in condensate neutralizer) and A.O. Smith’s Vertex HV. For comparison, Bradford White lists 78–79% recovery efficiency for its standard atmospheric and power direct vent tanks.

Is the upgrade worth it? DOE’s own analysis is a useful reality check. In the 2024 rule, DOE estimated the top condensing level would cost about $800 more installed and save some gas each year, but that over the heater’s life it would leave about 70% of households with a net cost (2022 dollars). DOE set the 2029 gas-tank minimum at a non-condensing level. A condensing tank tends to make most sense when you already need a new vent route, use a lot of hot water, or have a utility rebate; check rebates. The federal 25C tax credit ended for improvements made after December 31, 2025.

Tall, short and lowboy tanks hold about the same water

The same capacity often comes in several shapes. A tall tank is narrow, a short (or “medium”) tank is wider, and a lowboy is squat enough to fit under a low ceiling, a stair or a counter. Shape barely changes performance: Rheem’s tall and short 50-gallon electric tanks share a first-hour rating of 62 gallons.

Same job, different shapes (electric examples unless noted)
ShapeModelHeight × diameterFirst-hour rating
Tall, 50 gallonsRheem Performance Plus XE50T09EL45U158⅞ × 20¼ in.62 gallons
Short, 50 gallonsRheem Performance Plus XE50M09EL45U148 × 23 in.62 gallons
Tall, 40 gallonsA.O. Smith ProLine ENT-4061¼ × 18 in.53 gallons
Lowboy, 38 gallonsA.O. Smith ProLine ENLB-4032 × 23 in.51 gallons
Tall gas, 50 gallonsA.O. Smith ProLine GUR-50 (atmospheric)57 × 22 in.84 gallons

Sources: Rheem Performance Plus spec sheet (form THD-P+E9 N, 11/17); A.O. Smith product pages, checked October 4, 2026. Check the exact model: diameters vary by brand and series.

Federal rules: what changed in 2015 and what is set for 2029

Federal efficiency rules for tank water heaters, 2015 to 2029 Timeline. April 16, 2015: new federal standards take effect; most tanks under 55 gallons grow about 2 inches taller and wider, electric tanks over 55 gallons need heat-pump-level efficiency and many gas tanks over 55 gallons need condensing designs. 2017: Uniform Energy Factor replaces Energy Factor. May 2025: a 2024 rule for gas tankless heaters is overturned by Congress, without affecting the tank rule. October 4, 2026: the 2029 tank rule is still in federal regulations. May 6, 2029: electric tanks of 20 to 55 gallons must reach UEF 2.30 and 55 to 120 gallons UEF 2.50, both heat pump levels, except small low-use 20 to 35 gallon tanks; gas tanks of 20 to 55 gallons get a small increase; gas tanks over 55 gallons do not change. Federal efficiency rules for tanks They apply to heaters made on or after each date April 16, 2015 Third round of NAECA standards takes effect: • Most tanks under 55 gallons grow about 2 in. taller and wider, from added insulation • Electric over 55 gallons: heat pump level (UEF ≈ 2.0) • Gas over 55 gallons: many models need condensing 2017 UEF replaces Energy Factor as the efficiency rating May 2025 Congress overturns DOE’s 2024 gas tankless rule; the separate tank rule is not affected October 4, 2026 Checked: the 2029 rule is still in federal regulations and no notice withdraws or delays it May 6, 2029 DOE’s 2024 rule takes effect: Electric, 20–55 gallons Electric, 55–120 gallons Electric, 20–35 gal, low use Gas, 20–55 gallons Gas, over 55 gallons UEF 2.30: heat pump UEF 2.50: heat pump resistance still allowed small increase no change Sources: 10 CFR 430.32(d); DOE; ACHR News; State brochure.
Federal efficiency rules for tanks. The 2015 standards made big electric tanks heat pumps and pushed many big gas tanks to condensing designs. The 2024 rule, due May 6, 2029, extends the heat pump requirement to most electric tanks of 20–55 gallons.

2015. DOE’s standards under the National Appliance Energy Conservation Act (NAECA) took effect on April 16, 2015. Most tanks gained insulation and grew. Electric tanks over 55 gallons now need a UEF of about 2.0, which only heat pump models reach; A.O. Smith said at the time that “certain gas water heaters over 55 gallons” would need condensing technology. One exception remains: grid-enabled electric resistance tanks over 75 gallons, sold with an activation lock for utility demand-response programs.

2029. DOE’s May 2024 final rule sets new minimums for heaters made on or after May 6, 2029. Electric tanks of 20–55 gallons must reach a UEF of 2.30 and those of 55–120 gallons 2.50, levels that require heat pump technology. The exception is small electric tanks of 20–35 gallons rated in the two lowest-use bins, which keep a resistance-level standard. Gas tanks of 20–55 gallons get a modest increase; DOE modeled it with electronic ignition and an electric flue damper, and A.O. Smith says its atmospheric models “will require the addition of a damper.” Gas tanks over 55 gallons don’t change.

Expect 8–15 years, and read the warranty for what it leaves out

Estimates of tank life vary by source: 8–12 years (Rheem), 10–12 (ENERGY STAR), 10–15 (DOE Energy Saver). DOE’s 2024 rule modeled an average of 14.5 years for gas tanks and 15.1 for electric. Rheem names hard water, heavy use and skipped maintenance as the things that shorten it; see how long water heaters last.

  • Warranty length tracks price tier. A.O. Smith’s ProLine tanks carry 6 years on tank and parts, its Vertex HV 8; Rheem’s Performance Plus spec sheet lists 9 years plus 2 years of in-home labor; Bradford White sells 6- and 10-year versions of the same tanks.
  • Labor is often excluded. A.O. Smith’s residential warranty puts labor, removal and related charges on the owner unless state law says otherwise, and its labor terms, where offered, run 1–3 years.
  • Transfer rules differ. Bradford White’s warranty extends to later owners while the heater stays where it was installed; many others cover the original owner only.
  • Installation counts. A.O. Smith’s warranty excludes heaters not installed to local code or the manufacturer’s instructions, and those in a closed system without provision for thermal expansion; see expansion tanks.

Read the certificate for your exact model before you count on it. Water heater warranties covers what voids coverage and how claims work.

When a tank is the right choice

A gas tank fits when

Good

  • You have gas and a sound vent that a same-type model can reuse
  • You want the fastest recovery for the money
  • Several people shower in the same hour

Watch for

  • Changing the vent type adds cost
  • Standard models rate only about 0.60–0.73 UEF

Best for: Replacing an existing gas tank on a budget or in a hurry.

An electric tank fits when

Good

  • There is no gas, or no practical way to vent
  • The space is a small closet or a low spot that suits a lowboy
  • Your household is small or spreads its showers out

Watch for

  • Slower recovery than gas
  • A heat pump tank does the same job on a fraction of the power

Best for: Small households and spaces where a heat pump won’t fit.

Look past a standard tank when

Good

  • A heat pump tank fits the space and your climate
  • You need endless hot water and can supply the gas or power a tankless unit needs

Watch for

  • Higher price and more installation work

Best for: Compare all three in tank vs. tankless vs. heat pump.

Switching fuel is a bigger project than either swap; see gas vs. electric. Whatever you choose, ask each installer for the model number, its first-hour rating and how it vents, and compare quotes on those.

Common questions

What is the difference between an atmospheric and a power vent water heater?

An atmospheric gas tank lets hot exhaust rise on its own through a metal vent to a chimney or the roof, and needs no electricity. A power vent tank uses a blower to push exhaust out, usually sideways through a wall, and needs a 120-volt outlet. Power vents cost more but can go where there is no chimney.

Can I replace an atmospheric water heater with a power vent model?

Usually, yes, but it is a bigger job: a new vent through a wall, an outlet, and sometimes work on a furnace that shared the old vent. Ask the installer to include all of that in the quote. If the existing vent is sound, another atmospheric tank is normally the simpler swap.

Do power vent water heaters work during a power outage?

No. The blower and controls need electricity, so the burner won’t run until power returns, though the tank still holds whatever hot water was in it. Atmospheric tanks with a standing pilot and a thermopile-powered gas valve, such as Bradford White’s, need no outside electricity and keep heating.

Why does my electric water heater take so long to recover?

Standard electric tanks heat with one element at a time. A 4,500-watt element reheats about 21 gallons per hour at a 90°F rise, roughly half the rate of a typical gas burner. If you run out often, the cause may be a failed element or thermostat, or a tank too small for your busiest hour.

Are electric tank water heaters being banned?

Not banned. Under DOE’s 2024 rule, most electric tanks of 20–55 gallons made from May 6, 2029 must meet an efficiency only heat pumps reach; small low-use tanks of 20–35 gallons are exempt. Electric tanks over 55 gallons have had to meet heat-pump-level efficiency since 2015. As of October 4, 2026, the 2029 rule has not been withdrawn.

What is a lowboy water heater?

A short, wide tank for spaces with little headroom. A.O. Smith’s 38-gallon ProLine lowboy is 32 inches tall and 23 inches across, with a first-hour rating of 51 gallons.

Is a high-efficiency gas tank worth it?

It depends on the job. ENERGY STAR gas tanks are condensing models that cost more and need plastic venting, power and a condensate drain. DOE estimated they leave most households with a net cost over the heater’s life, so they make most sense with a rebate, high hot water use or a vent that has to change anyway.

Sources

Sources checked October 4, 2026. Prices, codes and rebates change. Check current details with your installer and local permit office.

  1. Consumer Water Heaters: standards rulemaking status ↗ · U.S. Department of Energy, Building Technologies Office
  2. Energy Conservation Standards for Consumer Water Heaters, final rule (89 FR 37778) ↗ · U.S. Department of Energy, Federal Register via govinfo
  3. 10 CFR 430.32(d): energy conservation standards for water heaters ↗ · Electronic Code of Federal Regulations
  4. 10 CFR 430.2: definitions (grid-enabled water heater) ↗ · Electronic Code of Federal Regulations
  5. DOE Residential Regulations for Water Heaters ↗ · A.O. Smith
  6. Industry prepares for new residential water heater standards (2015) ↗ · ACHR News
  7. NAECA 2015 builder brochure ↗ · State Water Heaters, hosted by Brothers Plumbing
  8. Residential water heaters key product criteria ↗ · ENERGY STAR
  9. ENERGY STAR Certified Gas (Storage and Tankless) Water Heaters dataset ↗ · ENERGY STAR
  10. What is Uniform Energy Factor and why does it matter? ↗ · ENERGY STAR
  11. What goes into the cost of installing a heat pump water heater? (tank lifespan) ↗ · ENERGY STAR
  12. Tankless or Demand-Type Water Heaters (archived copy, June 2026; storage heater lifespan) ↗ · U.S. Department of Energy, Energy Saver
  13. Gas water heater types explained: atmospheric, power vent, direct vent and more ↗ · Rheem
  14. The top installation mistakes plumbers see with water heaters ↗ · Rheem
  15. Water heater lifespan: when to repair vs. replace ↗ · Rheem
  16. Technical service bulletin: how an electric thermostat works ↗ · Rheem
  17. Performance Plus electric water heater spec sheet (form THD-P+E9 N) ↗ · Rheem, hosted by Home Depot
  18. Performance Plus Maximus XG50T09UHN50U0 product page ↗ · Rheem
  19. EcoSense condensing power direct vent spec sheet ↗ · Rheem, hosted by Home Depot
  20. ProLine GUR-50 atmospheric vent gas water heater ↗ · A.O. Smith
  21. ProLine XE GPVL-50 power vent gas water heater ↗ · A.O. Smith
  22. ProLine GDV-40 direct vent gas water heater ↗ · A.O. Smith
  23. ProLine XE GPDX-50L power direct vent gas water heater ↗ · A.O. Smith
  24. Vertex HV HPCX-50L condensing gas water heater ↗ · A.O. Smith
  25. ProLine ENT-40 tall electric water heater ↗ · A.O. Smith
  26. ProLine ENLB-40 lowboy electric water heater ↗ · A.O. Smith
  27. Residential atmospheric vent gas water heaters spec sheet (RG250T6N) ↗ · Bradford White, hosted by Young Supply
  28. Residential power direct vent gas water heater spec sheet ↗ · Bradford White, hosted by SupplyHouse
  29. Warranty Center FAQ ↗ · Bradford White
  30. Residential water heater limited warranty (form 100286376, Lowe’s channel, 2018) ↗ · A.O. Smith
  31. Water heater buying guide (updated August 2026) ↗ · Consumer Reports
  32. Energy Efficient Home Improvement Credit ↗ · IRS
  33. Water heater installation cost guide (tank range used in Ember & Tank pricing data) ↗ · Home Depot