Water Heater Options for NH Homes: Heat Pump, Tankless, and Gas
Water heaters have changed more in the last ten years than in the previous fifty. New Hampshire homeowners replacing an aging tank today have meaningfully better options than they did a decade ago: heat pump water heaters that operate at a fraction of the cost of electric resistance, high-efficiency condensing gas heaters approaching 96 percent efficiency, and tankless systems that deliver endless hot water without standby losses.
At A.J. LeBlanc Heating, we install and service water heaters across Manchester, Bedford, Concord, Nashua, Salem, and Auburn. Here is how the modern options stack up.
Heat pump water heaters (HPWH)
A heat pump water heater pulls heat out of the surrounding air and transfers it into the water in the tank. Because it moves heat instead of generating it, an HPWH typically uses one-third to one-quarter the electricity of a traditional electric resistance tank.
- Best fit for homes with electric water heating, or homes converting away from oil or propane domestic hot water.
- Needs adequate space (typically 700 to 1,000 cubic feet) and access to ambient air. A basement utility room or large mechanical closet is ideal.
- Doubles as a dehumidifier, which is welcome in many NH basements.
- Eligible for NHSaves utility rebates; ask us for current amounts. The federal 25C tax credit for heat pump equipment ended December 31, 2025.
- Expected lifespan 10 to 15 years.
Common brands installed in NH include Rheem ProTerra, A.O. Smith Voltex, Bradford White AeroTherm, and State Premier.
Condensing tankless (on-demand) water heaters
A tankless water heater fires only when there is hot water demand, which eliminates the standby losses of a storage tank. Modern condensing tankless units recover heat from exhaust gases and reach efficiencies of 95 percent or higher.
- Endless hot water as long as the unit is sized for the home's peak simultaneous demand.
- Compact, wall-mounted design recovers floor space.
- Expected lifespan of 15 to 20 years with proper annual descaling.
- Best fit for homes with adequate gas service and a peak hot-water demand the unit can keep up with (multiple simultaneous showers, large soaking tubs, etc.).
- Annual maintenance is important. Hard water shortens unit life if descaling is skipped.
Common brands include Navien, Rinnai, Noritz, and Bosch. Some Navien combi-boiler models provide both space heat and domestic hot water from one wall-mounted unit, which can simplify mechanical room layout in NH retrofits.
High-efficiency gas storage tanks
For homes that need a storage tank, modern condensing gas water heaters offer significantly better efficiency than the 60 percent or 70 percent units common 15 years ago.
- Efficiency typically between 90 percent and 96 percent.
- Familiar storage-tank design with faster recovery than traditional gas tanks.
- Best fit for homes with high simultaneous hot water demand and existing gas service.
- Expected lifespan of 10 to 15 years.
Indirect water heaters (for hydronic homes)
If your home has a boiler for hydronic heat, an indirect water heater uses the boiler to heat a separate insulated water tank. There is no separate burner, no separate flue, and standby losses are very low.
- Best fit for homes that already have a modern condensing boiler.
- Long lifespan, often 20+ years, with minimal maintenance.
- Eliminates the need for a separate water heater entirely.
Which one is right for your home?
The right water heater depends on:
- Your current fuel (electric, gas, propane, oil)
- Available space and venting
- Peak simultaneous hot water demand (number of showers, fixtures, dishwasher, washer)
- Whether you have an existing boiler
- NHSaves rebate eligibility
- How long you expect to stay in the home
For most NH homes upgrading from an old electric tank, a heat pump water heater is currently the highest-value option. For gas homes with high simultaneous demand, condensing tankless or high-efficiency gas storage usually wins.
Schedule a water heater consultation
If your current water heater is past 10 years old, undersized, or showing signs of failure, contact A.J. LeBlanc Heating. We will walk through the options that fit your home and your fuel. Serving New Hampshire families since 1928.
Frequently Asked Questions
Is a heat pump water heater worth it in a cold New Hampshire basement?
Yes, in most cases. NH basements are typically 55°F to 65°F year-round, well within the efficient operating range of modern HPWH units. The cool, dry air a heat pump water heater produces as a byproduct is actually welcome in most NH basements.
How much can a heat pump water heater save?
Replacing a standard electric resistance tank with a heat pump water heater can reduce water heating costs by 60 to 75 percent. Specific savings depend on hot water use, electric rates, and the existing system.
What tax credits and rebates are available?
The federal 25C Energy Efficient Home Improvement Credit ended December 31, 2025, and is not available for new installations. NHSaves utility rebates remain available and vary by program and household income. We track current incentives, so ask us about eligibility before purchase.
How long does a tankless water heater last?
15 to 20 years with annual descaling. Hard water shortens that significantly if descaling is skipped.
Can I install one of these myself?
Water heater installation involves gas, electrical, and plumbing connections, and in most NH municipalities requires a licensed plumber and a permit. We do not recommend DIY for any of the modern systems.