Best On Demand Water Heater for under $700

Best On Demand Water Heater For The Money

You wanna find the best on demand water heater money can buy? Well why would you want that? Perk up those little pointy elf ears and listen up 🙂

Water heaters consume massive amounts of energy. And most likely you’re house is equipped with an old water heater tank that’s very inefficient because it heats the water constantly whether you need hot water or not. Plain and simple, that just doesn’t make sense to this little elf brain. Why use energy and money to heat water when you don’t need it?

Well some genius elf came along and invented a tankless water heater, aka the on demand water heater. It only heats water when you need it. And how fast does it take to heat up you ask? Instantly! The only downside is that these units aren’t free. Well, what is? But they pay for themselves and more in the long run. You will most certainly have lower utility bills if you make the small investment into an on demand water heater.

As reported by the U.S. Department of Energy, via SF Gate, water heaters are the second largest electricity user in the home, and they notch up an average of 18 percent in electricity costs.

How can a tankless water heater help to cut costs? A tankless water heater can lower your electricity usage in the home substantially because it ensures that you only use the hot water you need at the moment, instead of storing it in a tank where it has to be reheated again before use.

If you’re interested in making the switch to a tankless water heater, you’ll be pleased to know it comes with other bonuses, such as how it not only saves electricity but water, as well as how it’s much easier to store in your home, so you don’t have to worry about storage issues if you live in a small apartment.

Let’s take a look at the best on demand water heater for the money as well as four other products worth purchasing to give you hot water without the extra cost.

Best tankless electric water heater overall winner: EcoSmart ECO 11 Electric Tankless Water Heater

EcoSmart ECO 11 Electric Tankless Water Heater Review

This EcoSmart Eco Tankless Water Heater is the perfect choice for you if you want to cut down your electricity bills.

It can save you up to 60 percent of your water heating costs. How does it work and what’s so great about its features?


  • It makes use of a patented and self-modulating technology to control its energy output
  • It will heat up two gallons of water every minute and works best for a temperature of or above 67 degrees Fahrenheit. During the warmer months, it can handle two sinks running at the same time as a shower, and in the colder months it can handle two sinks running at the same time.
  • No matter how you use it, you get a continuous stream of hot water from this tankless water heater, thanks to how it heats water as it moves through the unit. It doesn’t store hot water in the way that a water tank would. It saves you money because of that fact – it only switches on when you need to have hot water.
  • It’s easy to store because it doesn’t take up space. As compared to conventional tank heaters, this one gets mounted onto the wall so that you have more space for other storage requirements in your home.

Extra Features

  • This electric tankless water heater has an element that’s easily replaceable, for the utmost convenience.
  • Using the unit is really easy and you can adjust its settings with the digital temperature display.


  • Some people who have purchased the product have complained that they get a low water flow with this unit.
  • Others have reported that customer service is unsatisfactory, which is problematic if you encounter problems with this water heater.

Buying Guide

This EcoSmart tankless water heater costs approximately $150, depending on what sellers you choose on Amazon and if you purchase it new or used. If you do a lot of handwashing, then this is the one to buy.

While it might not have the capacity you need, it is suitable for small bathrooms and small sinks.

Runner-Up: Stiebel Eltron 223422 Tankless Electric Water Heater

Stiebel Eltron 223422 240V Review

This is another energy-efficient tankless water heater that can save you water and money.

With Stiebel Eltron being one of the best manufacturers of electric tankless water heaters, you’re in good hands. Let’s check out its important benefits.


  • The unit makes use of Advanced Flow Control In Tempra Plus, which basically means that your water will always be hot without you having to wait when you want to step into the shower, for the utmost convenience to match your lifestyle’s needs.
  • If you need more hot water than it can give you, this water heater will reduce your water flow a bit so that you can still make use of hot water.
  • The heating chambers are made out of copper to keep water hot.

Extra Features

  • The unit works very quietly. Users have reported that you can only hear the water in the pipes.
  • With this unit, you can use a sink at the same time as a shower without experiencing a blast of cold water.


  • You need to install a sediment filter before you can use the product.

Buying Guide

This Stiebel Eltron tankless heater costs about $600. While it might seem a bit expensive, it does work well and seems built to last. It’s also backed by the manufacturer’s name which is renowned in the industry.

Alternative Product: Rinnai V Series HE Tankless Hot Water Heater

Rinnai V Series HE Tankless Hot Water Heater Review

This tankless water heater system is value for money because of all its great features that work hard to save you money and ensure you always have hot water. It makes use of gas to give you the water you need, further cutting down on your electrical costs.


  • This model makes use of ThermaCirc360 technology that works by recirculating hot water through the pipes so you never run out of it.
  • One of the best features about this Rinnai V Series water heater is that you can control it remotely via an app. You can set timers and schedules throughout the day even when you’re not at home.

Extra Features

  • It is nice and compact so it won’t take up a lot of space in your home. The manufacturer states that you can save 16 square feet of space because it’s only the size of a small suitcase.
  • It saves you money because its parts are all replaceable so you don’t have to purchase a new unit if yours breaks.
  • It has a high life expectancy of 20 years.


  • Sometimes the water does take a minute to heat up, as some users have reported.
  • Other users have also reported that the unit is a little noisy.

Buying Guide

This tankless water heater costs about $600. It’s a durable, solid product that has some nice frills as a bonus, such as how you can control it via an app. It’s a must for your smart home design!

Best For The Money: Bosch Electric Mini-Tank Water Heater

Bosch Electric Mini-Tank Water Heater Tronic 3000 T 2.5-Gallon Review

This mini water heater is compact and easy to use: simply attach it to the cold water line in your home so that you can install it directly at your sink, and you can start using it immediately.


  • This 2.5-gallon water heater can conveniently fit right under your sink or cabinets so you get hot water whenever you need it without having a chunky appliance taking up space in your kitchen.
  • It’s made to be durable with its glass-lined material. It also has foam insulation that’s free of CFCs.
  • It can supply up to two sinks at the same time.

Extra Features

  • You can mount this in various ways for the ultimate convenience: it can be mounted onto a wall, shelf, or floor – thanks to a bracket that comes included in the pack.
  • The sleek design of this unit makes it appealing to keep somewhere where it’s visible because it fits in with various dĂ©cor styles.


  • The hot water isn’t always reliable and constant, as some users have reported that the unit’s temperature fluctuates quite a bit.

Buying Guide

This Bosch water heater costs about $150, so it’s a perfect example of how you don’t need a lot of money to buy an effective and eco-friendly water heater for your home. While it doesn’t have the durability of more expensive models, it’s still got the basics you need if you’re short on money.

Best For The Money Runner-Up: Camplux ME40 Mini Tank Electric Water Heater

Camplux ME40 Mini Tank Electric Water Heater 4-Gallon Review

If you need a tankless water heater in the home or when you’re on the road in your RV, this one’s perfect. It’s built to accommodate outdoor life and can even be used on a boat! Let’s take a look at its features.


  • This water heater is very easy to install – just connect it to the water line and install it under your sink. You don’t need to make use of lines and pumps.
  • It contains a glass-lined tank to protect it against damage and extend its lifespan.
  • This unit has an adjustable thermostat that controls temperature automatically. It also has a red indicator light that stays on when the water is being heated.

Extra Features

  • It’s got a “High Limit” feature that protects the unit against overheating.
  • It also has a CSA-listed temperature and pressure relief valve to make it a safe unit to use. To be CSA-listed, a product needs to pass in-depth tests relating to its standards and this is a label that is valuable all over the world, not just in the region where the product was manufactured.


  • Some users have reported that the dimensions that are listed for the product on Amazon only refer to the unit case and don’t include the cold and hot water stubs or pressure relief valve, which all make the unit a few inches taller. That’s worth bearing in mind if you’re short on space in your home.

Buying Guide

Highly economical, the Camplux electric water heater costs about $200. By far, it’s one of the most eco-friendly and convenient water heater products on the market.

Tankless Water Heater FAQ

Tankless Water Heater FAQ

After reading our electric tankless water heater reviews, you probably have a good idea of the product you’d like to purchase for your home. But let’s look at some frequently asked questions about on demand electric water heater products in general.

Is a tankless water heater worth it?

One of the biggest reasons why you might be interested in purchasing a tankless water heater is to save money on your electricity bill. If so, there’s good news.

You can save more money on hot water because the water gets heated as you need it, instead of being stored in a tank.

There are other benefits of electric water heater tankless products.

These include:

  • They save space. Gone are the days when your water heater had to be put in the attic. With tankless water heaters, you can easily store them anywhere in the house because they are much more compact than traditional water heaters. Some even enable you to quickly and easily store them underneath your sink or cabinet. An example is the Camplux ME40 Mini Tank Electric Water Heater that’s featured in our tankless water heater reviews.
  • They work immediately. The best tankless water heater electric products are convenient for your lifestyle. With traditional water heater tanks, you have to wait for the water to heat up before you can wash the dishes in winter or step into a hot shower. These situations can be prevented with the use of an instant hot water heater electric model because it’s always ready to give you hot water when you open the faucet.
  • They last longer. The average water heater tank will last you approximately 10 years, but tankless water heaters are capable of lasting double that amount of time, as YGrene reports.
  • They prevent standby loss. Traditional water heaters will keep reheating water so that you have it when you need it, but this means that they’re notching up energy costs. With tankless water heaters, you prevent this extra cost and standby loss –this is defined as the energy that goes to waste when hot water in the pipe cools or when it sits in the storage tank, as Energy Depot reports.

What is the downside of a tankless water heater?

Water Heater One Sink Limit

Although a tankless water heater has lots of benefits, there are some disadvantages to consider. These include:

  • They don’t give you unlimited use. Although you can usually use two sinks or a sink and a shower simultaneously with the use of a tankless water heater, that doesn’t mean you can do lots more. There’s not enough hot water available for all those tasks.
  • They don’t always give you a constant hot temperature when the flow rate varies unless they have modulating temperature control. This could especially cause you a problem if you have water pressure that varies in different spots in the house.
  • They can’t give you hot water during a power outage because they need electricity to heat the water. However, the use of a gas-powered unit can help in this regard. An example of an effective gas tankless water heater is the Rinnai V Series HE Tankless Hot Water Heater that’s featured in our best rated electric tankless water heater reviews.

How does my tankless water heater go cold?

There’s a term used with tankless water heaters that’s known as cold water sandwich.

What this refers to is sudden fluctuations in temperature that can make your tankless heater produce both hot and cold water at the same time. This can be caused by various things. As My Dad Can Do That, reports these things can be the culprit:

  • A plumbing system crossover that shouldn’t be there. A crossover is defined as when cold water flows into the hot water system.
  • Venting pipes that are not of the right length.
  • A damaged flow sensor.
  • A dirty water filter on the cold water inlet.
  • Corroded lines, such as because there is condensation dripping on the gas burner.
  • You’re pushing the heater to its limit. There’s only so much that a tankless water heater can do, so if you’re trying to get a lot of hot water running at the same time, this can cause cold water to come out instead.
  • Your tankless water heater shuts down during use, which can be as a result of its minimum flow rate not being met. This is the minimum amount of water that the unit requires so that it can give you hot water. If this amount isn’t being met, then the unit will shut off as a safety measure.

How much you can save with the water heater on demand?

Save Money on Electricity

If you’re hoping to save water and money by purchasing a tankless water heater that gives you hot water on demand, then you’re in luck.

The U.S. Department of Energy states that gas-powered tankless water heaters will save you an average of $108 in your yearly energy costs when compared to traditional tank heaters. Also, electric tankless heaters can save you around $44 per year, Abacus Plumbing reports.

Also, these products are between eight and 34 percent more energy efficient when compared to tank water heaters, as Smart Wheater reports.

When it comes to how much it costs to purchase a tankless water heater, you can expect to pay between $1,500 and $2,000 which includes installation, but as can be seen in our tankless water heater reviews, this amount can be much less without sacrificing on important features such as durability.

For example, the most expensive tankless water heater on our list is approximately $600 while the most budget-friendly is approximately $150.

By comparison, a whole-house tank will cost approximately $430 without any installation, and a traditional water heater will be around $440, as Fixr reports. So, if you shop in the right places, there isn’t much difference in price between traditional and tankless water heaters.

What’s really important is that you can save more money on your electricity bill and water usage when owning a tankless water heater.


Investing in a tankless water heater is better for the environment because it saves water, it’s better for your wallet because it saves money, and you can find many types of tankless water heaters that suit your lifestyle, whether you want to use one at home or on the road.

In this article, we’ve featured the best on demand water heater for the money and provided you with alternative products that can save you more money or give you other features you might want in a tankless water heater.

Don’t forget to check out our other useful tips for saving hard earned cash around the home.


The Frugal Elf


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