There's plenty of research to do before deciding on the perfect type of water heater for your home. Choosing between a conventional storage water heater, on-demand water heater, solar water heater, heat pump water heater, or otherwise will depend on factors such as: Energy efficiency Design preferences Tank/tankless Size/storage capacity Budget Warranty Once you have a well-rounded understanding of the options available to you, and their respective pros and cons, you're in a better position to make an informed decision.