Is An External Gas Water Heater Worth It?

29, Jan. 2026

 

What is an External Gas Water Heater?

External gas water heaters are appliances that heat water using natural gas or propane, located outside of your home. They are known for their efficiency in providing hot water for various household needs, from bathing to washing dishes. As a homeowner, you might wonder if investing in an external gas water heater is worth the cost. This guide will help you evaluate whether it's a suitable choice for your needs.

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1. Assess Your Hot Water Needs

Start by determining how much hot water your household requires. Consider the number of people in your home and your daily hot water usage.

  • Action Method: Make a list of all hot water-consuming appliances and fixtures, such as showers, dishwashers, and washing machines.
  • Applicable Scenario: If you have a large family that takes multiple showers in the morning, you may require a unit with a higher capacity.

2. Evaluate Installation Costs

Installation costs for external gas water heaters can vary significantly. Research the average installation fees in your area and get quotes from several contractors.

  • Action Method: Contact at least three licensed plumbers to compare installation costs and availability.
  • Applicable Scenario: If you live in a region with a high demand for water heater installation, prices may be elevated, impacting your decision.

3. Consider Energy Efficiency

Look into the energy efficiency ratings of potential external gas water heaters. Models with higher efficiency ratings can save you money on utility bills in the long run.

  • Action Method: Check the Energy Factor (EF) ratings on various models. A higher EF indicates better efficiency.
  • Applicable Scenario: If you're looking to reduce monthly expenses, investing in a high-efficiency model could lead to significant savings.

4. Research Available Features

Different models of external gas water heaters come with various features, such as tankless options, which provide hot water on demand without the need for a storage tank.

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  • Action Method: List must-have features versus nice-to-have features to narrow down your options.
  • Applicable Scenario: If your home has limited space, a tankless external gas water heater might be a better fit.

5. Analyze Maintenance Requirements

Maintenance is a critical factor to consider when installing an external gas water heater. Review the manufacturer’s guidelines regarding maintenance needs and frequency.

  • Action Method: Research common maintenance tasks, such as flushing the tank and checking the gas lines.
  • Applicable Scenario: If you prefer low-maintenance solutions, consider models designed for minimal upkeep.

6. Evaluate Longevity and Warranty Options

Assess the lifespan of different external gas water heaters and the warranties offered by manufacturers.

  • Action Method: Look for reviews and testimonials on the longevity of models you are considering, as well as warranty policies.
  • Applicable Scenario: If you plan to stay in your home for several years, choose a model with a longer warranty for peace of mind.

7. Decide on the Overall Value

After gathering all the information, weigh the pros and cons of installing an external gas water heater.

  • Action Method: Create a pros and cons list based on factors such as cost, efficiency, and features.
  • Applicable Scenario: If the benefits outweigh the drawbacks, it may be a wise investment for your home.

In conclusion, deciding whether an external gas water heater is worth it requires careful consideration of your specific needs and circumstances. By following these steps and assessing various factors, you can make an informed choice. If you're still uncertain, consider consulting with a plumbing expert who can provide personalized recommendations.

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