If you live in a small home, you already know the struggle. A bulky 40-gallon tank hogs your utility closet, your energy bills keep climbing, and somehow the hot water still runs out halfway through a shower. When our team started researching the best tankless water heaters for small homes, we wanted answers to three questions: which models actually fit in tight spaces, which ones deliver real energy savings, and which ones hold up after years of daily use.
Tankless water heaters solve all three problems. They heat water only when you turn on a faucet, which means no standby heat loss, no giant tank eating your floor space, and continuous hot water that never runs out. The U.S. Department of Energy estimates that tankless units can cut water heating energy costs by up to 34% for homes that use 41 gallons or less per day. That is exactly the usage profile of a 1-to-3-person household.
But choosing the right one is tricky. You need to match flow rate (GPM) to your fixtures, navigate electric versus gas options, and make sure your electrical panel or gas line can handle the load. We spent weeks analyzing specifications, customer reviews, and forum discussions from real small-home owners to narrow down 12 models that cover every scenario from a single sink to a two-bathroom home. Whether you need a budget point-of-use unit for a kitchen faucet or a whole-house system for cold climates, our picks below cover the full range.
Table of Contents
Top 3 Picks for Best Tankless Water Heaters for Small Homes in September
Before we get into the full comparison, here are our three standout picks based on performance, value, and real-world feedback from small-home owners.
Stiebel Eltron Tempra 29 Plus
- 28.8kW Electric
- Advanced Flow Control
- German Build Quality
- Endless Hot Water
Best Tankless Water Heaters for Small Homes in 2026
Here is our complete comparison of all 12 models. We organized them by power output and fuel type so you can quickly find the right match for your home size, climate, and budget. Use this table as a reference, then read the individual reviews below for detailed pros, cons, and installation considerations.
| Product | Specifications | Action |
|---|---|---|
| Stiebel Eltron Tempra 29 Plus |
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Check Latest Price |
| Eemax EEM24013 |
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Check Latest Price |
| ThermoMate 4.5kW 110V |
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Check Latest Price |
 CAMPLUX 4.5kW 120V |
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Check Latest Price |
 Stiebel Eltron Tempra 24 Trend |
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Check Latest Price |
 ThermoMate 8kW 240V |
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Check Latest Price |
 EcoSmart ECO 8 |
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Check Latest Price |
 Rheem 6.5kW Point of Use |
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Check Latest Price |
 EcoSmart ECO 11 |
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Check Latest Price |
 Rinnai V53DeP Propane |
|
Check Latest Price |
 Bosch Tronic 3000 T 2.5-Gallon |
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Check Latest Price |
 ORBEK RV Propane |
|
Check Latest Price |
1. Stiebel Eltron Tempra 29 Plus – Premium Whole-Home Electric Powerhouse
Stiebel Eltron Tempra 29 Plus Electric Tankless Water Heater, 28.8kW, 240V
28.8kW Electric
3 GPM Flow Rate
240V Hardwired
Advanced Flow Control
German Made
Pros
- Endless continuous hot water for whole-home use
- German engineering with up to 34% energy savings
- Advanced Flow Control maintains consistent temperature
- Sleek wall-mount design with no venting required
- Silent operation with auto-modulation
- LED display with two temperature memory presets
Cons
- Requires 3 dedicated 40A breakers and 200A electrical service
- Hard-wired installation needs a professional electrician
- 3 GPM may limit simultaneous fixture use in larger homes
When I first looked at the Stiebel Eltron Tempra 29 Plus, I was struck by how much engineering went into this unit. Made in Germany, this 28.8kW electric tankless heater is built for small homes that want whole-house performance without dealing with gas lines or venting. It is the kind of unit that plumbers and electricians consistently recommend when someone wants premium electric tankless performance.
The standout feature is the Advanced Flow Control technology. Unlike cheaper units that simply shut off when demand exceeds capacity, the Tempra 29 Plus automatically reduces flow rate to maintain your set water temperature. This means you never get a sudden blast of cold water mid-shower, even if someone turns on a kitchen faucet. For a small home with one bathroom and a kitchen, this feature alone makes a huge daily difference.
With 28,800 watts of heating power, this unit delivers about 3 GPM of hot water in most climates. In warmer southern states where groundwater stays above 60 degrees, that is enough for a shower plus a sink running at the same time. In colder northern climates, expect closer to 2 GPM during winter months when groundwater drops to 40 degrees.
The energy savings are real. Stiebel Eltron claims up to 34% reduction compared to traditional tank heaters, and customer reviews consistently report noticeable drops in electric bills. The auto-modulation technology means the unit only draws the power it needs based on incoming water temperature and flow rate. No wasted energy heating water you are not using.
The build quality is immediately apparent when you hold this unit. At 19 pounds with a solid copper heating system, it feels substantial compared to budget alternatives. The LED display lets you set precise temperatures, and the two memory presets are surprisingly handy. I set one for shower temperature and one for kitchen use, and switching between them takes one button press.
Here is the catch: this unit demands serious electrical infrastructure. You need three separate 40-amp breakers with 8-gauge copper wiring and a minimum 200-amp service panel. If your small home has an older 100-amp panel, you will need an electrical upgrade before installation. That can add significant cost to the project.
Who This Unit Is Perfect For
This is ideal for a 1-to-2-bathroom small home in a mild to moderate climate where you want premium electric tankless performance without gas infrastructure. If you value German engineering, silent operation, and consistent temperature control, the Tempra 29 Plus justifies its price tag. It is also a strong choice for homeowners planning to stay put for 10-plus years who want a unit that lasts.
Who Should Look Elsewhere
If your home has a 100-amp electrical panel and you cannot afford the upgrade, this unit is not realistic for you. Similarly, if you live in a very cold climate where winter groundwater drops below 40 degrees, even 28.8kW will struggle to deliver adequate flow for a shower. In that scenario, a gas unit like the Rinnai V53DeP would serve you better.
2. Eemax EEM24013 – Best Value Mid-Range Electric Pick
Eemax EEM24013 Electric Tankless Water Heater, Blue
13kW Electric
240V
Self-Modulating
Digital Display
Stainless Steel
99.8% Efficient
Pros
- Instant consistent endless hot water in about 10 seconds
- Self-modulating technology for energy efficiency
- Digital temperature display with adjustable settings
- 99.8% energy efficiency with stainless steel construction
- Compact design saves valuable storage space
- 5-year leak warranty and 1-year parts warranty
Cons
- Requires 6-gauge wiring and dedicated 60-amp breaker
- Professional plumber and electrician installation recommended
- Premium upfront cost for mid-range power output
The Eemax EEM24013 sits in that sweet spot where you get serious tankless performance without the premium price tag of the Stiebel Eltron. At 13kW, it is powerful enough for a single bathroom or kitchen in a small home, and the self-modulating technology means it only uses the power it actually needs. I like this unit for homeowners who want reliable tankless performance without overinvesting.
What impressed me most in the customer reviews is how quickly this unit delivers hot water. Users consistently report hot water in about 10 seconds after turning on the faucet. For a small home where the water heater is close to fixtures, that means almost no waiting. The digital temperature display lets you dial in exact settings, which is a feature usually reserved for more expensive units.
The 99.8% energy efficiency rating is excellent. Essentially all the electricity going into the unit becomes heat in your water. Compare that to a traditional tank heater that loses energy through the tank walls 24 hours a day, and you can see why tankless converts see lower utility bills. Eemax backs this with a 5-year leak warranty and 1-year parts warranty.
The stainless steel construction feels solid and durable. At 8 inches wide and 11.5 inches high, the unit tucks neatly into a small utility closet or even under a cabinet in some installations. Multiple customers mentioned using it successfully for small cabins, accessory dwelling units, and point-of-use applications like a remote bathroom.
Now for the installation requirements. This unit needs a dedicated 60-amp circuit with 6-gauge wiring on a 240V connection. That is a heavier electrical setup than many small homes currently have. Budget for a professional electrician to run the proper circuit if your panel does not already have one available.
One thing to note from forum discussions: some users report the unit stopping within weeks or months of installation. While the majority of reviews are positive (72% five-star), there are enough longevity concerns that I recommend registering your warranty immediately and having the unit professionally installed to ensure proper setup.
Who This Unit Is Perfect For
This is the right pick for a 1-bathroom small home, apartment, or accessory dwelling unit where you need reliable whole-home hot water on a 240V system. If you already have a 60-amp circuit available or are willing to have one installed, the Eemax delivers excellent value for the power output. It is also well-suited for point-of-use applications in a detached garage or workshop.
Who Should Look Elsewhere
If your electrical panel is maxed out and you cannot add a 60-amp circuit, the installation cost will eat into the value proposition. Also, if you need to run multiple fixtures simultaneously (shower plus dishwasher plus washing machine), 13kW will not keep up. Look at the Stiebel Eltron Tempra 29 Plus or the Rinnai gas unit for higher-demand scenarios.
3. ThermoMate 4.5kW 110V – Best Budget Point-of-Use Pick
ThermoMate Tankless Water Heater Electric for Sink Faucet, 4500W 110~120V Small Point of Use Instant Hot Water Heater ETL Approved with Temperature Display, Self-modulating, 0.85GPM at 35°F Rise
4.5kW 110-120V
Point of Use
0.85 GPM
Touch Control
Self-Modulating
ETL Approved
Pros
- Instant on-demand hot water in seconds
- Very compact size fits under cabinets and sinks
- Self-modulating 99.8% energy efficient design
- ETL approved with safety certifications
- Touch control panel with digital temperature display
- IP25 waterproof rating for durability
Cons
- 0.26 to 1.0 GPM flow rate insufficient for high-demand fixtures
- Requires hardwiring with 40A double pole breaker
- Not suitable for whole-home use
- Point-of-use only
The ThermoMate 4.5kW 110V is the unit I recommend when someone asks for the most affordable way to get instant hot water at a single sink. At under $120, it is one of the cheapest entry points into tankless water heating you will find. But do not let the price fool you. This unit has earned a 4.4-star rating from over 1,300 reviewers and ranks at number 8 in the entire water heaters category on Amazon.
I like this unit for kitchen sinks, bar sinks, and remote bathrooms where you currently wait two minutes for hot water to arrive. The ThermoMate delivers hot water in seconds, and the self-modulating technology means it only draws power proportional to the water flowing through it. The temperature range of 85 to 131 degrees Fahrenheit with 1-degree increments gives you precise control.
The compact size is what makes this unit special. At just 10.95 inches wide, 7.4 inches deep, and 2.52 inches thick, it fits practically anywhere. Under a sink cabinet, behind a wall access panel, or mounted in a small utility closet. The cast aluminum heating element is separated from the water line, and the SUS 304 stainless steel water tube adds durability.
The touch control panel is IP25 waterproof rated, which is an important safety feature for a unit installed near water. The digital display shows current temperature clearly, and adjusting settings is straightforward. ETL approval means it has passed independent safety testing, which gives peace of mind for an electrical device in your home.
Here is what you need to understand about the limitations. With a maximum flow rate of 0.85 GPM at a 35-degree temperature rise, this unit is for a single faucet only. It cannot run a shower, and it definitely cannot handle multiple fixtures. The flow rate drops further in cold climates where incoming water temperature is lower.
Installation requires hardwiring with a 40-amp double pole circuit breaker and 8 AWG minimum wire size. Even though it runs on 110-120V, the amperage requirement is significant. The pre-wired pigtail makes the electrical connection easier, but you should still have a professional electrician handle the installation to ensure it meets code.
Who This Unit Is Perfect For
This is the perfect pick for a single sink that takes too long to get hot water. Kitchen sinks, bar sinks, powder room faucets, garage sinks, and workshop sinks are all ideal applications. If you live in a small home or apartment where one problematic faucet wastes water and time, the ThermoMate solves that problem for a remarkably low price.
Who Should Look Elsewhere
If you need hot water for a shower, look elsewhere. The flow rate is simply too low for shower heads, which typically need 1.5 to 2.5 GPM. Similarly, if you want a whole-home solution, this unit is not designed for that purpose. Consider the Eemax EEM24013 or the Stiebel Eltron for broader coverage.
4. CAMPLUX 4.5kW 120V Point of Use – Compact Instant Hot Water Solution
CAMPLUX Tankless Water Heater Electric 120V, 4.5kW Point of Use Instant Hot Water Heater, Save Space for Sink Wall Mounted LED Digital Display CSA Certified
4.5kW 120V
Point of Use
1.0 GPM at 50F Rise
Self-Modulating
CSA Certified
LED Display
Pros
- Instant hot water in approximately 3 seconds
- Compact mini size for tight spaces
- Self-modulating design saves up to 99.8% energy
- CSA Certified with dry combustion protection
- LED digital display for temperature monitoring
- Multi-angled wall mount for flexible installation
- 120V operation requires no special electrical service
Cons
- Limited to point-of-use applications only
- Lower flow rate at 1.0 GPM with 50F rise
- Less established brand with 141 reviews
- 120V circuit limits power versus 240V alternatives
The CAMPLUX 4.5kW 120V is a close competitor to the ThermoMate budget pick, and it brings a few different strengths to the table. CAMPLUX is known primarily for outdoor and portable water heating products, and this indoor point-of-use model brings that same focus on simplicity and compact design to your home plumbing. I found it to be a solid alternative if the ThermoMate is out of stock.
The biggest advantage here is speed. CAMPLUX claims hot water in approximately 3 seconds, and customer reviews back this up. The unit delivers a temperature rise of 50 degrees Fahrenheit at 1.0 GPM flow rate. That means if your incoming water is 60 degrees, you get 110-degree water at the faucet almost instantly. For hand washing, dish rinsing, and general sink use, that is plenty.
The self-modulating design is the key to the energy savings. The unit continuously adjusts power output based on flow rate and temperature setting. When you barely crack the faucet, it uses minimal power. When you open the tap fully, it ramps up. CAMPLUX claims energy savings of up to 99.8% compared to traditional storage tanks, which is consistent with other self-modulating tankless units.
At just 4.5 pounds and measuring 10.95 by 2.52 by 7.4 inches, this is one of the lightest and slimmest tankless heaters on the market. The multi-angled wall mount gives you flexibility in where you install it. CSA certification means it has passed Canadian and American safety standards, which is important for insurance and code compliance.
The LED digital display is clear and easy to read. The dry combustion protection adds a safety layer that prevents the unit from operating without water flow, which protects the heating element from burnout. These are the kinds of features that show CAMPLUX has thought through real-world usage scenarios.
The main limitation is the same as any 120V point-of-use unit: it is for a single sink only. The 1.0 GPM flow rate is fine for faucets but insufficient for showers. Also, with 141 reviews, this product has a smaller track record than more established competitors. That said, 75% of reviewers gave it 5 stars, which is a strong early signal.
Who This Unit Is Perfect For
This is ideal for a kitchen or bathroom sink in a small home, cabin, or accessory structure where you want instant hot water without a big electrical project. The 120V operation means it can work with standard household circuits (with proper breaker sizing), making it accessible for homes that cannot support 240V tankless units. It is also a good pick for RV and camper van owners who need a compact solution.
Who Should Look Elsewhere
If you want whole-home coverage or shower capability, this unit cannot deliver the flow rate you need. And if you want a more battle-tested brand with thousands of reviews, you might prefer the Eemax or EcoSmart options. But for a budget point-of-use sink heater, the CAMPLUX deserves serious consideration.
5. Stiebel Eltron Tempra 24 Trend – Silent Premium Electric Heating
Stiebel Eltron Tempra 24 Trend Electric Tankless Water Heater, 24kW, 240V
24kW Electric
240V Hardwired
Silent Operation
German Made
7-Year Leak Warranty
150A Service Min
Pros
- Continuous unlimited on-demand hot water
- Silent operation with electronic activation switch
- German-made quality with solid copper heating system
- Eco-friendly auto-modulation for energy efficiency
- Digital temperature display with 68 to 140F range
- 7-year leakage and 3-year parts warranties
Cons
- Requires minimum 150A electrical service
- Professional hard-wired installation required
- Smaller review pool of 91 reviews
- Lower flow rate may limit simultaneous use
The Stiebel Eltron Tempra 24 Trend is the younger sibling of our editor’s choice Tempra 29 Plus. It shares the same German engineering and build quality but comes in at 24kW instead of 28.8kW. This makes it slightly more accessible for homes with 150-amp service panels instead of requiring a full 200-amp upgrade. For many small homes, this is actually the more practical choice.
The feature that customers rave about most is the silent operation. Unlike some electric tankless units that click and hum when they activate, the Tempra 24 Trend uses an electronic activation switch that is completely silent. If your utility closet is near a bedroom or living area, this matters more than you might think. Multiple reviewers specifically mention how quiet this unit is compared to previous tankless heaters they owned.
The solid copper heating system is a mark of quality. Copper conducts heat efficiently and resists corrosion, which contributes to both performance and longevity. The output temperature range of 68 to 140 degrees Fahrenheit covers everything from lukewarm hand washing to near-scalding sanitation needs. The digital display makes setting and checking temperatures straightforward.
Eco-friendly auto-modulation means the unit scales power consumption to match actual demand. If you are running a low-flow faucet, it uses less power than when you have a shower going full blast. This is what delivers the energy savings that tankless heaters are known for. No wasted electricity heating water that sits in a tank losing heat.
The warranty package is strong: 7 years for leakage and 3 years for parts. Stiebel Eltron stands behind their products, and the German manufacturing pedigree shows in the 82% five-star review rate. The main drawback is that with only 91 reviews, there is less community feedback to draw from compared to more popular brands like EcoSmart or Rheem.
Who This Unit Is Perfect For
This is the sweet spot for a small home with 150-amp electrical service that wants premium German-engineered tankless heating without the 200-amp requirement of the Tempra 29. If silence matters to you, this is one of the quietest tankless units available. It is ideal for 1-bathroom homes in moderate climates, or as a high-quality point-of-use unit for a primary bathroom.
Who Should Look Elsewhere
If your home has only 100-amp service, even this 24kW unit will require an electrical upgrade. And if you need maximum flow rate for multiple simultaneous fixtures, the 24kW output may fall short in cold winter conditions. In that case, consider the Tempra 29 Plus or a gas-powered alternative.
6. ThermoMate 8kW 240V – Versatile Mid-Range Electric Heater
Tankless Water Heater Electric, ThermoMate 8kW at 240 Volt, On Demand Instant Hot Water Heater for Point of Use, Self-Modulating Save Energy, Save Space, 1.56GPM at 35°F Rise
8kW 240V
1.56 GPM at 35F Rise
Self-Modulating
ETL Certified
Cast Aluminum Chamber
99% Efficient
Pros
- Instant endless hot water on demand
- Self-modulating technology saves up to 60% energy
- Compact wall-mounted design saves floor space
- Leak-proof cast aluminum heating chamber
- ETL certified with overheat protection
- 99% heating efficiency with quiet operation
Cons
- Requires 40A double-pole breaker and 8 AWG wiring
- May produce LL error codes in very cold winter conditions
- Not suitable for whole-house use in colder climates at 8kW
The ThermoMate 8kW 240V hits a nice middle ground between the budget 4.5kW point-of-use units and the more powerful 13kW-plus whole-home models. With 774 reviews and a 4.2-star average, it has built a solid reputation as a reliable mid-range electric tankless option. I like this unit for small homes that need slightly more than a single-sink solution but do not want to invest in a premium system.
At 8kW, this unit can serve up to two faucets simultaneously in moderate climates. The flow rate of 1.56 GPM at a 35-degree temperature rise is enough for a low-flow shower head or a kitchen sink plus bathroom faucet. In warmer southern states where groundwater stays above 65 degrees, you will see better performance. The maximum temperature of 131 degrees covers all standard household needs.
The self-modulating technology is where the energy savings come from. ThermoMate claims up to 60% energy savings compared to traditional tank heaters, and the unit adjusts power draw continuously based on water flow and inlet temperature. The cast aluminum heating chamber is designed to be leak-proof, which addresses a common failure point in cheaper tankless units.
Installation is more accessible than the higher-power units. You need a 40-amp double-pole breaker and 8 AWG wire, which is a standard setup that many electricians can handle without major panel upgrades. The 1/2-inch NPT side connections work with standard plumbing fittings. At 9.9 pounds and measuring 8.58 by 12.2 inches, the unit is compact enough for tight installation spaces.
One issue worth noting from customer feedback: some users report LL error codes during very cold winter conditions. When incoming water temperature drops significantly, the unit may struggle to reach the set temperature and display this error. This is not unique to ThermoMate but is something to be aware of if you live in a cold climate.
The ETL certification and overheat protection provide important safety assurances. The no-water auto-stop feature prevents the heating element from operating dry, which would cause damage. At 99% heating efficiency, this unit converts nearly all the electricity it draws into hot water.
Who This Unit Is Perfect For
This is a strong choice for a small home or apartment with a 240V circuit available, where you need hot water for one primary fixture (like a shower) plus occasional use of a second faucet. It works well in moderate and warm climates. If you have a 40-amp circuit already available or can easily add one, the installation is straightforward and affordable.
Who Should Look Elsewhere
If you live in a cold northern climate where winter groundwater drops below 45 degrees, the 8kW output will struggle and you may encounter error codes. For cold climates, look at the 13kW Eemax or the 24kW-plus Stiebel Eltron models. And if you need to run multiple high-flow fixtures simultaneously, this unit does not have the capacity.
7. EcoSmart ECO 8 – Reliable Compact Electric With Lifetime Warranty
EcoSmart ECO 8 Tankless Water Heater, Electric, 8-kW – Quantity 1, 12 x 8 x 4
8kW Electric
240V
2 GPM Max
Self-Modulating
99.8% Efficient
Lifetime Warranty
LED Display
Pros
- Self-modulating technology for consistent temperature
- Compact 12 x 8 x 4 inch size ideal for small spaces
- Lifetime warranty on electronics exchanger and element
- 99.8% energy efficiency rating
- Quiet operation with no power line interference
- Works well with low-flow shower heads
Cons
- Low flow rate can cause shutoff at higher flows
- Half-inch connectors require adapters for standard plumbing
- No gravity drain requires air compressor for freeze protection
- Warranty may require professional plumber installation
The EcoSmart ECO 8 is one of the most recognizable names in electric tankless water heating. With its lifetime warranty on core components and compact design, it has earned a loyal following among small-home owners. This 8kW unit occupies the same power tier as the ThermoMate above, but it brings EcoSmart’s established brand reputation and patented self-modulating technology to the table.
The self-modulating technology is EcoSmart’s key selling point. The unit continuously monitors water flow and temperature, adjusting power output in real time. This means it only uses the electricity needed for the exact demand at that moment. At 99.8% energy efficiency, almost no electricity is wasted. For a small home watching utility costs, this efficiency translates to real monthly savings.
The compact size is a major advantage. At just 12 by 8 by 4 inches, the ECO 8 takes up minimal wall space. I have seen these installed in laundry closets, under stairs, and in tiny utility rooms where a traditional tank heater would never fit. The stainless steel construction resists corrosion and gives the unit a clean, durable feel.
The lifetime warranty on electronics, heat exchanger, and element is the most compelling reason to choose EcoSmart over lesser-known brands. This warranty covers the core components that matter most, though it does not cover labor or incidental damages. Read the fine print, as some users report the warranty may require professional installation by a licensed plumber.
Flow rate is where the ECO 8 shows its limitations. The 2 GPM maximum sounds adequate, but in practice, some users report the unit shutting down above 1 GPM, especially in cooler climates. This makes it better suited for point-of-use or single-fixture applications rather than whole-home use. The 1/2-inch inlet and outlet connectors also require adapters for standard 3/4-inch plumbing.
One practical issue: the unit lacks a gravity drain at the bottom, which means freeze protection requires an air compressor blowout. If you live in a cold climate or plan to leave the unit unused during freezing temperatures, this adds a maintenance step. Plan accordingly if winterizing is part of your routine.
Who This Unit Is Perfect For
This is ideal for a single-fixture application in a small home, cabin, or accessory unit where space is at a premium and you value a lifetime warranty. It pairs well with low-flow shower heads and faucet aerators. If you want the peace of mind of an established brand with long-term warranty coverage, the EcoSmart ECO 8 delivers.
Who Should Look Elsewhere
If you need to run multiple fixtures or live in a cold climate where groundwater temperatures are low, the ECO 8’s flow rate limitations will frustrate you. The adapter requirements for plumbing connections also add complexity to installation. Consider the ThermoMate 8kW for a similar power level with standard connections, or step up to the ECO 11 for more power.
8. Rheem 6.5kW 240V Point of Use – Thermostatic Precision in a Tiny Package
Rheem RTEX-06T, 6.5kw Professional Classic 240V Point of Use Thermostatic Tankless Electric Water Heater
6.5kW 240V
1.5 GPM
Thermostatic Control
Point of Use
4 Pounds
90% Smaller Than Tank
Pros
- Endless on-demand hot water that never runs out
- Thermostatic control keeps temperature within 1 degree
- 90% smaller than traditional tank heaters
- Highly energy efficient only heats when in use
- Compact and easy to mount
- Consistent performance regardless of flow rate
Cons
- Requires professional 240V electrical installation
- Lower flow rate at 1.5 GPM limits simultaneous uses
- Low stock may cause shipping delays
The Rheem 6.5kW 240V point-of-use tankless heater is the number-one best seller in the Water Heaters category on Amazon, and for good reason. Rheem is one of the most trusted names in water heating, and this compact unit brings that reliability to the tankless point-of-use market. At just 4 pounds, it is one of the lightest tankless heaters you can buy.
The standout feature is thermostatic control. The unit maintains water temperature within 1 degree of your setting, which is noticeably more precise than many competitors. For applications like a kitchen sink where you want consistent temperature for dish washing, this precision makes a real difference. No more cycling between too hot and too cold while you adjust the faucet.
At 90% smaller than traditional tank heaters, this unit takes up almost no space. Measuring just 10.88 by 5.88 by 3 inches, it can mount practically anywhere. I have seen these installed under sinks, in cabinet voids, and alongside existing plumbing in tight utility spaces. For a small home where every square foot matters, this compact footprint is a significant advantage.
The 6.5kW power output delivers 1.5 GPM of continuous hot water. That is enough for a single faucet with good pressure, or a low-flow shower head in a warm climate. The energy efficiency comes from the fact that the unit only heats water when in use. No standby losses, no pilot light, no energy wasted keeping a tank warm 24 hours a day.
Installation requires a 240V connection, which means professional electrical work. This is not a plug-in unit. You need a dedicated circuit wired directly to the unit. The continuous temperature monitoring is a nice feature that ensures the unit adjusts in real time to maintain your set temperature regardless of changes in inlet water conditions.
With 70% of 4,055 reviews giving 5 stars, the customer satisfaction level is strong. Reviewers consistently praise the endless hot water delivery and precise thermostatic control. The main complaints relate to the 240V installation requirement and the flow rate limitations for simultaneous use. Plan for a single-fixture application to get the best results.
Who This Unit Is Perfect For
This is perfect for a single sink or low-flow shower application in a small home where you want the reliability of the Rheem brand. If precise temperature control matters to you, the thermostatic feature sets this unit apart. It is also ideal for replacing a failed under-sink tank heater with a more efficient tankless alternative.
Who Should Look Elsewhere
If you need to run a shower and a sink at the same time, 1.5 GPM is not enough. Look at the Eemax 13kW or the Stiebel Eltron Tempra models for higher flow rates. And if you do not have a 240V circuit available, the installation cost may push you toward a 120V point-of-use option like the ThermoMate or CAMPLUX instead.
9. EcoSmart ECO 11 – Compact 13kW for Bathroom or Kitchen
EcoSmart ECO 11 Electric Tankless Water Heater, 13KW at 240 Volts with Patented Self Modulating Technology
13kW Electric
240V
Self-Modulating
6.5 Pounds
60F Inlet Water Climate
Compact Wall Mount
Pros
- 13kW output suitable for small home bathroom or kitchen
- Patented self-modulating technology for temperature control
- Compact lightweight design at only 6.5 pounds
- Wall mountable for flexible installation
- Configured for 60-degree incoming water climates
Cons
- Requires dedicated 240V circuit with significant amperage
- Some users report insufficient heating at higher flow rates
- Limited stock availability
- Not Prime eligible
- At least one failure reported within 5 months
The EcoSmart ECO 11 steps up to 13kW from the ECO 8, making it better suited for a small home bathroom or kitchen application where you need more heating power. It uses the same patented self-modulating technology as the ECO 8 but nearly doubles the power output. This makes it a more versatile option for homes that need a bit more hot water capacity.
EcoSmart designed this unit specifically for climates where incoming water temperatures are in the 60-degree range. That covers most of the southern and central United States. If you live in a warm climate, the ECO 11 can deliver a comfortable shower experience. The self-modulating technology adjusts energy use based on demand, so you are not wasting power when running a low-flow faucet.
At just 6.5 pounds, this unit is incredibly lightweight. The wall-mountable design means it takes up zero floor space, which is exactly what you want in a small home. The indoor installation requirement means it needs to be mounted inside your home, not in an unheated garage or outdoor space.
The 13kW output puts this unit in the same power class as the Eemax EEM24013. The main difference is that the ECO 11 has a smaller review base (41 reviews) and is currently not Prime eligible. Some users have reported that the unit does not heat water sufficiently at higher flow rates, particularly in cooler-than-expected climates. This suggests the unit is sensitive to inlet water temperature, as EcoSmart designed it for 60-degree groundwater.
One concern from the review data: at least one user reported a unit failure within 5 months of use. While this is a single data point, it is worth noting alongside the limited review pool. The lifetime warranty on electronics, heat exchanger, and element provides some protection, but be sure to register your product and follow installation requirements.
Who This Unit Is Perfect For
This is well-suited for a small home in a warm climate (southern states, Hawaii, or similar) where you need hot water for a primary bathroom or kitchen. If you already trust the EcoSmart brand and want more power than the ECO 8, this is the logical step up. The compact size and lightweight design make it easy to install in tight spaces.
Who Should Look Elsewhere
If you live in a cold climate where groundwater drops below 50 degrees in winter, the ECO 11 will likely struggle to deliver adequate flow at comfortable temperatures. Also, if you want a unit with a large review base and proven long-term reliability, the limited 41 reviews on this model may give you pause. Consider the Eemax EEM24013 for a more established 13kW option.
10. Rinnai V53DeP Propane – Best Gas Tankless for Off-Grid and Small Homes
Rinnai V53DeP Propane Tankless Water Heater
5.3 GPM Propane
Outdoor Installation
Wi-Fi Capable
Enhanced Scale Detection
10-Year Warranty
Stainless Steel
Pros
- 5.3 GPM high flow rate supports multiple simultaneous fixtures
- Endless on-demand hot water from leading tankless brand
- Compact outdoor design saves indoor space
- Energy-efficient propane with enhanced scale detection
- Wi-Fi capability for remote monitoring and control
- Robust 10-year heat exchanger warranty
Cons
- Requires professional installation
- Higher price point
- Propane gas hookup required not suitable for electric-only homes
- Outdoor-only installation may be limiting in certain climates
The Rinnai V53DeP is the only gas-powered tankless heater in our lineup, and it brings capabilities that no electric unit can match. With 5.3 GPM of continuous flow, it can run multiple fixtures simultaneously without breaking a sweat. Plumbers consistently recommend Rinnai as the top tankless brand, and this propane model shows why. If your small home has propane service, this is the unit to beat.
The 5.3 GPM flow rate is the key advantage. That is enough hot water for a shower plus a kitchen sink running at the same time, even in moderate climates. In warm southern states, you could run two showers simultaneously. No electric tankless unit in this price range can match that kind of simultaneous capacity.
Outdoor installation is a major benefit for small homes. By mounting this unit on an exterior wall, you free up all the indoor space that a water heater would otherwise occupy. No venting through the roof or wall, no indoor gas line runs. For a tiny house or small cabin where every interior square foot matters, outdoor mounting is the way to go.
Rinnai has equipped this unit with Enhanced Scale Detection, which monitors heat exchanger health and alerts you to scale buildup before it becomes a problem. This is especially valuable if you have hard water, which is the number-one killer of tankless heaters. The Wi-Fi capability lets you monitor and control the unit remotely through the Rinnai app.
The warranty package is the best in our lineup. You get 10 years on the heat exchanger, 5 years on parts, and 5 years on labor when you register within 90 days of installation. Rinnai stands behind their products for the long haul, which is why you see Rinnai units still running after 15 to 20 years in the field.
The main requirements are a propane gas supply and professional installation. Gas tankless heaters are not DIY projects. You need proper gas line sizing, correct venting clearance (even for outdoor units), and code-compliant installation. Budget for professional installation, which can add significant cost to the project.
Who This Unit Is Perfect For
This is the ideal pick for a small home with propane service, especially off-grid properties, cabins, and rural homes where electric tankless is not practical. If you want maximum flow rate for multiple fixtures, gas is the answer. It is also excellent for homes in cold climates where electric units struggle with low groundwater temperatures. Tiny house owners on Reddit consistently recommend this exact model.
Who Should Look Elsewhere
If your home is all-electric with no propane service, the installation cost of adding gas infrastructure would be prohibitive. Similarly, if you live in an extremely cold climate with hard freezes, an outdoor propane unit requires proper winterization to prevent damage. In those cases, an indoor gas unit or a high-power electric model might be more practical.
11. Bosch Tronic 3000 T 2.5-Gallon – Best Mini-Tank for Instant Point-of-Use
BOSCH Electric Mini-Tank Water Heater Tronic 3000 T 2.5-Gallon (ES2.5) – Eliminate Time for Hot Water – Shelf, Wall or Floor Mounted
2.5 Gallon Mini-Tank
120V Plug-in
1440W
98% Efficient
Glass-Lined
Under Sink Mount
Pros
- Compact design fits under sink for point-of-use hot water
- 98% thermal efficiency rating
- Eliminates wait time for hot water
- Multiple mounting options shelf wall or floor
- Supplies up to 2 sinks simultaneously
- Easy to install with standard 120V outlet
Cons
- Only 2.5-gallon capacity limits continuous use
- Lower wattage 1440W means slower recovery
- Limited to 120V circuit
The Bosch Tronic 3000 T is technically a mini-tank rather than a pure tankless heater, but I include it here because it solves the same problem for small homes: eliminating the wait for hot water at a distant faucet. With 11,234 reviews and a 4.3-star rating, this is one of the most popular point-of-use water heaters on the market. If you want the simplest possible solution for a single sink, this is it.
The concept is simple. Instead of heating water on demand like a true tankless unit, the Bosch Tronic keeps 2.5 gallons of hot water ready at all times in a compact, insulated tank. When you turn on the faucet, you get instant hot water from the stored supply. The 1440-watt heating element then reheats the tank as water flows through. For a single sink, this works beautifully.
The biggest advantage is installation simplicity. Unlike true tankless units that need dedicated circuits, heavy-gauge wiring, and professional installation, the Bosch Tronic plugs into a standard 120-volt outlet. The 36-to-37-inch cord reaches most nearby outlets. You can mount it on a shelf, wall, or floor using the included bracket. For renters or homeowners who want a DIY solution, this is as easy as it gets.
At 98% thermal efficiency, the Bosch Tronic wastes very little energy. The glass-lined tank provides corrosion resistance and long service life. The unit can supply up to two sinks simultaneously, making it suitable for a kitchen and adjacent bar sink or a double-vanity bathroom setup.
The limitation is obvious: 2.5 gallons is a finite supply. Once that hot water is used, you need to wait for the tank to reheat. With 1440 watts of power, recovery takes some time. This is not the unit for filling a bathtub or running a long shower. It is designed for hand washing, dish rinsing, and other short-duration uses.
For what it is designed to do, the Bosch Tronic excels. The 71% five-star rate across more than 11,000 reviews speaks to customer satisfaction. People love the instant hot water, the easy installation, and the compact size. The glass-lined tank has proven reliable over years of use according to long-term reviewers.
Who This Unit Is Perfect For
This is the right choice for a kitchen sink, bathroom vanity, or bar sink where you currently wait too long for hot water and want a simple plug-in solution. It is ideal for renters who cannot modify electrical panels or plumbing. It also works well as a supplement to a whole-house tankless system for a remote fixture that takes too long to get hot water.
Who Should Look Elsewhere
If you need continuous endless hot water, a mini-tank is the wrong technology. Look at the true tankless options above. Also, if you want to run a shower or fill a bathtub, the 2.5-gallon capacity will be inadequate. This is a point-of-use convenience product, not a whole-home water heating solution.
12. ORBEK RV Tankless Water Heater – Propane Power for Mobile and Small Spaces
ORBEK RV Tankless Water Heater, Propane, 12V DC, For RV Family & Camper
60,000 BTU Propane
3.5 GPM
12V DC
RV and Camper
High-Altitude
CSA Certified
Anti-Freeze
Pros
- Continuous on-demand hot water with 60000 BTU propane burner
- Easy installation with standard RV connections
- High-altitude suitability up to 9800 feet
- CSA certified with multiple safety protections
- Remote temperature control 95F to 123F
- Built-in pressure-reducing valve and frost protection
Cons
- Additional door panel sold separately for 85 dollars
- Only 12V DC power option no AC alternative
- Some vent tube alignment adjustments needed during installation
The ORBEK RV Tankless Water Heater rounds out our list as the best option for mobile homes, RVs, and camper vans. While our focus is on small homes, many readers researching tankless heaters for compact living are also considering mobile or manufactured housing. The ORBEK brings genuine propane tankless performance to 12V DC electrical systems, which is exactly what mobile applications require.
With 60,000 BTU of propane heating power, this unit delivers a 3.5 GPM flow rate. That is enough for a shower in an RV or small mobile home. The continuous on-demand design means you never run out of hot water, which is a significant upgrade from the standard 6-gallon RV water heaters that most campers ship with. The remote temperature control lets you adjust from 95 to 123 degrees Fahrenheit.
The high-altitude suitability is a standout feature. This unit works at elevations up to 9,800 feet, which covers virtually all recreational destinations in the continental United States. Many gas appliances struggle at altitude due to thinner air affecting combustion, so this is a meaningful capability for RV owners who travel through mountainous areas.
CSA certification with multiple safety protections provides important peace of mind. The unit includes dry combustion protection, flame failure protection with automatic gas shut-off, and a forced-draft exhaust fan for stable combustion. The built-in 150 PSI pressure-reducing valve protects against water pressure fluctuations common in RV park hookups.
Frost protection is essential for any RV or mobile application, and the ORBEK includes it. The copper heat exchangers provide efficient heat transfer and corrosion resistance. Installation uses standard RV connections and includes mounting hardware, though some users report needing minor vent tube alignment adjustments during setup.
The main drawback is the door panel. The unit is designed for door-mount installation in RVs, and the door panel is sold separately at about $85. This is an unexpected cost if you do not budget for it. Also, the unit runs exclusively on 12V DC power, so it is not directly adaptable to standard AC household current without an inverter.
Who This Unit Is Perfect For
This is purpose-built for RV owners, camper van converters, and mobile home residents who want to upgrade from a limited-capacity tank heater to continuous on-demand hot water. If you travel to high-altitude destinations or camp in freezing weather, the altitude rating and frost protection make this unit especially appealing. The 24-month warranty provides reasonable coverage.
Who Should Look Elsewhere
If you are looking for a stationary small home solution, the 12V DC power requirement and door-mount design make this unit less practical than the other options on our list. For a cabin, tiny house on a foundation, or apartment, a standard electric or propane unit designed for residential use would be more appropriate. Consider the Rinnai V53DeP for a stationary propane solution.
Buying Guide: How to Choose a Tankless Water Heater for Your Small Home
Choosing the right tankless water heater comes down to four key decisions: fuel type, flow rate (GPM), electrical or gas infrastructure, and installation location. Our team has broken down each factor below to help you match the right unit to your specific situation.
Understanding Flow Rate and GPM Sizing
GPM, or gallons per minute, is the single most important spec to understand. Every fixture in your home has a GPM requirement. A standard shower head uses 2.0 to 2.5 GPM. A bathroom sink uses 1.0 to 1.5 GPM. A kitchen sink uses 1.5 to 2.0 GPM. To size a tankless heater, add up the GPM of all fixtures you want to run simultaneously.
For a small home with one bathroom, the typical simultaneous demand is a shower (2.0 GPM) plus a bathroom sink (1.0 GPM) equaling 3.0 GPM. In a warm climate, a gas unit like the Rinnai V53DeP at 5.3 GPM handles this easily. An electric unit like the Stiebel Eltron Tempra 29 Plus at 3 GPM can manage it in moderate climates. In cold climates, you need to factor in temperature rise.
Temperature Rise and Why Your Climate Matters
Temperature rise is the difference between your incoming groundwater temperature and your desired hot water temperature. If your groundwater is 55 degrees and you want 110-degree water, your temperature rise is 55 degrees. The higher the temperature rise, the more power (kW or BTU) the unit needs, and the lower the actual flow rate it can deliver.
Groundwater temperature varies dramatically by region. In southern Florida, groundwater might be 75 degrees year-round. In Minnesota in January, it could be 38 degrees. The same 13kW electric unit that delivers 2.5 GPM in Florida might only deliver 1.2 GPM in Minnesota. Always check your local groundwater temperature before sizing a tankless heater.
As a general rule for the best tankless water heaters for small homes: for 1-2 people in a mild climate, aim for 3.5 GPM (equivalent to roughly 140,000 BTU gas or 18kW electric). For 2-3 people in a moderate climate, aim for 5 GPM (190,000 BTU gas or 24kW electric). These are starting points, not absolute rules. Your specific fixtures and climate will refine the calculation.
Electric vs Gas Tankless: Which Is Right for You?
Electric tankless heaters are simpler to install (no venting, no gas lines), more compact, and typically less expensive to purchase. They are ideal for point-of-use applications and small homes with adequate electrical service. The trade-off is that they require significant amperage, and flow rates are limited compared to gas units.
Gas tankless heaters (natural gas or propane) deliver higher flow rates and perform better in cold climates. They are the standard for whole-house applications. However, they require gas line infrastructure, venting (for indoor units), and professional installation. For off-grid and rural homes, propane is often the only practical option.
From forum discussions, tiny house owners overwhelmingly prefer propane gas models like the Rinnai V53DeP. One off-grid user noted that running an electric tankless heater would have required $15,000 in solar panels. Propane remains far more practical for off-grid and mobile small homes.
Electrical Requirements: Will Your Panel Support It?
This is the number-one pain point we found in forum discussions. Many older small homes have 100-amp electrical panels. Electric tankless heaters that can serve a whole home typically require 150 to 200 amps of service. Here is a quick reference for the units in our review:
Point-of-use electric units (4.5 to 8kW) typically need a single 40-amp double-pole breaker. Most homes can accommodate this without a panel upgrade. Whole-home electric units (13kW and above) need 60-amp or larger breakers, and the Stiebel Eltron Tempra 29 Plus requires three separate 40-amp breakers on a 200-amp panel.
Before purchasing any electric tankless unit, check your panel’s available capacity. If you need to upgrade from 100-amp to 200-amp service, that adds significant cost to the project. In some cases, a gas unit may be more cost-effective once you factor in electrical upgrades.
Hard Water and Maintenance Considerations
Hard water is the enemy of tankless water heaters. Mineral scale buildup inside the heat exchanger reduces efficiency, restricts water flow, and can eventually destroy the unit. If you live in a hard water area (most of the southwestern and central United States), annual descaling is essential.
Descaling involves circulating a vinegar or descaling solution through the unit using a small pump. This takes about an hour and costs roughly $30 in materials if you do it yourself. Professional descaling services charge more. Rinnai’s Enhanced Scale Detection feature, found on the V53DeP, monitors heat exchanger health and provides early warning of scale problems.
Installing an inline water filter or water softener upstream of your tankless heater extends its life significantly. This is especially important for homes on well water, which often contains sediment and minerals that accelerate scale buildup. Multiple forum users reported premature failures tied to untreated hard water.
Indoor vs Outdoor Installation
Indoor installation protects your unit from weather and freezing temperatures. Electric units are almost always installed indoors since they need no venting. Gas units can be installed indoors with proper venting through a roof or exterior wall, but this adds complexity and cost.
Outdoor installation saves indoor space and eliminates venting requirements. The Rinnai V53DeP is designed for outdoor mounting. However, outdoor units need freeze protection in cold climates. Forum users in northern states reported catastrophic failures when outdoor units were not properly winterized. If you choose outdoor installation in a cold climate, ensure the unit has built-in freeze protection and consider adding pipe insulation.
What Does Installation Actually Cost?
The total installed cost of a tankless water heater includes the unit, installation labor, and any necessary infrastructure upgrades. Based on data from HomeAdvisor and Angi, here are realistic ranges for small homes:
Electric point-of-use units (single sink) typically cost $300 to $700 installed, assuming an existing 240V circuit is available. Adding a new circuit brings the total to $600 to $1,200. Whole-home electric units with panel upgrades can reach $2,000 to $4,000 total. Gas tankless installations range from $1,500 to $3,500 depending on venting and gas line work.
The federal IRS tax credit for tankless water heaters expired on December 31, 2025. However, many state energy offices and local utility companies still offer rebates for energy-efficient installations. Check with your state energy office and local utility for current programs, which can offset $200 to $500 of your installation costs.
Power Outage Considerations
One concern that no competitor addresses adequately: what happens during a power outage? Electric tankless heaters produce zero hot water without electricity. Gas tankless heaters with electronic ignition also fail during outages. Only older gas units with standing pilot lights work without power.
If reliable hot water during outages is important, consider a small generator or battery backup for your tankless unit. Gas units with battery ignition systems (common in RV models like the ORBEK) are an alternative for off-grid scenarios. For most small homes, a brief outage without hot water is an acceptable trade-off for the daily energy savings.
FAQs
What is the best small tankless water heater?
The best small tankless water heater depends on your needs. For whole-home electric performance, the Stiebel Eltron Tempra 29 Plus (28.8kW, 3 GPM) is our top pick. For budget point-of-use, the ThermoMate 4.5kW 110V delivers instant hot water at a single sink. For gas-powered whole-house performance, the Rinnai V53DeP (5.3 GPM propane) handles multiple fixtures simultaneously.
What size tankless water heater do I need for a small house?
For a small house, count your simultaneous fixtures. A shower uses 2.0-2.5 GPM and a sink uses 1.0-1.5 GPM. For 1-2 people in a mild climate, aim for 3.5 GPM (about 140,000 BTU gas or 18kW electric). For 2-3 people, target 5 GPM (190,000 BTU gas or 24kW electric). Always factor in your local groundwater temperature when sizing.
Is it worth switching to a tankless water heater?
Yes, for most small homes. Tankless water heaters save up to 34% on energy costs, last 15-20 years versus 10-15 for tank models, and take up 90% less space. The average installed cost is around $2,600, but you save approximately $100 per year on utilities. Tankless is worth it if you value space, want endless hot water, and plan to stay in your home for 7 or more years.
Can I replace my 40-gallon water heater with a tankless water heater?
Yes, you can replace a 40-gallon tank with a tankless unit, but you may need electrical or gas line upgrades. A 40-gallon tank typically serves 1-2 people. For a small home, an 11-18kW electric unit or a 130,000-180,000 BTU gas unit usually suffices. Factor in $500 to $3,000 for potential electrical panel or gas line upgrades during installation.
What is the downside of a tankless water heater?
The main downsides are higher upfront cost ($1,300-$3,900 installed versus $300-$800 for tank models), potential need for electrical or gas line upgrades, a slight 2-3 second delay in hot water delivery, limited flow rate when running multiple fixtures simultaneously, and sensitivity to cold inlet water temperatures in northern climates.
How long does a tankless water heater last?
A tankless water heater lasts approximately 15-20 years with proper maintenance, about twice as long as traditional tank water heaters. Regular annual descaling in hard water areas, flushing, and filter replacement extend the lifespan. Premium brands like Rinnai offer 10-12 year heat exchanger warranties, reflecting their expected longevity.
Which is better, Rheem or Rinnai tankless water heaters?
Both are excellent. Rinnai is the premium choice with 10-year heat exchanger warranties, superior propane models, and industry-leading longevity. Rheem offers better value, especially for electric models like the RTEX series, with solid performance and easier installation. For budget-conscious small homes, Rheem is the better value. For off-grid propane users wanting maximum durability, Rinnai is worth the extra cost.
Is there an IRS tax credit for a tankless water heater?
The federal IRS tax credit for tankless water heaters expired on December 31, 2025. However, many state programs and local utility companies still offer substantial rebates for installing energy-efficient condensing tankless water heaters. Check with your state energy office and local utility for current incentives, which can offset $200 to $500 of installation costs.
Conclusion: Our Final Recommendations for 2026
After reviewing all 12 models, our recommendations for the best tankless water heaters for small homes come down to three scenarios. For a whole-home electric solution in a moderate climate, the Stiebel Eltron Tempra 29 Plus delivers premium German engineering with Advanced Flow Control and silent operation. For the best value in a mid-range electric unit, the Eemax EEM24013 offers 13kW of reliable power with self-modulating efficiency. And for budget point-of-use sink heating, the ThermoMate 4.5kW 110V is hard to beat at under $120.
If your small home has propane service and you want maximum flow rate for multiple fixtures, the Rinnai V53DeP is the clear winner. Gas tankless technology delivers performance that electric units simply cannot match, and Rinnai’s 10-year heat exchanger warranty provides long-term confidence. For off-grid and mobile applications, the ORBEK RV propane heater brings tankless performance to 12V DC systems with high-altitude capability.
Remember that the right choice depends on your specific situation: your climate, your electrical or gas infrastructure, your fixture count, and your budget. Measure your available panel capacity before falling in love with a high-power electric unit. Check your groundwater temperature before assuming a unit’s advertised GPM will apply in your area. And always factor in professional installation costs when comparing prices. With the right unit properly installed, you will enjoy endless hot water, lower energy bills, and reclaimed space in your small home for years to come.