Replacing a water heater: tank, tankless or heat pump?

Updated 2026-10-20

Most tank water heaters last 8–12 years. When yours goes, you'll choose between another tank, a tankless unit or an electric heat pump water heater, and a proper install includes a permit and earthquake strapping.

Signs it's time

  • Water around the base of the tank (a leaking tank can't be repaired)
  • Rusty or discolored hot water
  • Popping or rumbling noises
  • Running out of hot water faster than before
  • The tank is more than 10–12 years old (the date is in the serial number on the label)

Your three options

  • Tank (gas or electric): the simplest swap and usually the lowest upfront cost.
  • Tankless (gas): endless hot water and saves space, but may need a bigger gas line and new venting.
  • Heat pump water heater (electric): very efficient and often eligible for rebates; needs some space around it and may need a new electrical circuit.

What a proper install includes

  • A city permit and inspection
  • Earthquake straps: California requires water heaters to be braced or strapped
  • Correct venting for gas units and a working temperature/pressure relief valve
  • An expansion tank where required
  • Haul-away of the old tank

Questions to ask the plumber

  • Is the permit included?
  • What size do you recommend for my household, and why?
  • How long are the tank and labor warrantied?
  • Are there rebates for a heat pump water heater right now?

Ready for a plumber?

Send one request with photos. A person at SVHN reads it and sends it to one local pro. Free for homeowners.

Questions

My water heater is leaking. What should I do now?

Turn off the cold-water valve on top of the tank, turn off the gas or the breaker, and put a pan or towels down. Then send a plumbing request and choose the fastest timing.

Sources

General information, not legal advice. Rules change; check with your city or the agency linked above.

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