Types of Water Heaters | A Drop Above Plumbing

Water Heater Guide · A Drop Above Plumbing

Tankless vs Power Vent vs Hybrid Heat Pump vs Atmospheric

Not all water heaters are built the same. If you’re a homeowner in the Rockford, Machesney Park, Loves Park, or Roscoe area, here’s how to tell which system fits your home, your budget, and your long-term energy goals.

Which Water Heater Is Right for Your Home?

When your water heater starts acting up, you’re suddenly faced with a big decision: Do I just replace what I have, or is now the time to upgrade?

At A Drop Above Plumbing, we help homeowners every week choose between tankless, power vent, hybrid heat pump, and atmospheric vent water heaters. Each style has its own strengths, weaknesses, and ideal use cases.

This guide breaks down the main types in plain language so you can make a confident decision for your family and your home.

Quick overview: Tankless = endless hot water and efficiency · Power vent = flexible venting and better performance · Hybrid heat pump = highest energy savings · Atmospheric = basic, budget-friendly gas tank.
Tankless Power Vent Hybrid Heat Pump Atmospheric Vent

1. Tankless Water Heaters

A tankless water heater (also called “on-demand”) heats water only when you turn on a faucet or shower. There’s no large storage tank; water passes through a heat exchanger and is heated instantly as it flows.

How tankless systems work

When you open a hot water tap, the tankless unit senses flow, fires the burner (or electric element), and heats the water as it passes through. Once you close the tap, it shuts down. No tank reheating all day while nobody’s using hot water.

Pros

  • Endless hot water (properly sized system)
  • No large tank taking up floor space
  • Higher efficiency than many standard tank models
  • Longer lifespans when installed and maintained correctly
  • Great for busy households with back-to-back showers

Cons

  • Higher upfront cost for equipment and installation
  • May require larger gas line or upgraded venting
  • Not always the best choice for homes with very low electrical or gas capacity
  • Annual maintenance (descaling) is important, especially with hard water

Best for

Larger families, homes with multiple showers running, and homeowners planning to stay in the home long-term who want energy savings and endless hot water.

2. Power Vent Gas Water Heaters

A power vent water heater uses a fan (blower) to push exhaust gases out of the home through PVC or special venting. Instead of relying on a chimney or natural draft, the fan actively moves the exhaust.

How power vent systems work

The tank looks similar to a standard gas water heater, but you’ll see a blower motor on top and plastic vent piping out the sidewall or roof. When the burner fires, the fan kicks on and safely vents combustion gases outdoors.

Pros

  • Flexible venting options (no masonry chimney needed)
  • Often more efficient than older atmospheric models
  • Good choice for finished basements and tight spaces
  • Safer venting path in many modern homes

Cons

  • Requires electricity to run the blower motor
  • More parts: the fan and controls can fail over time
  • Typically higher cost than basic atmospheric units
  • Slight fan noise when the unit is running

Best for

Homes without a good chimney, finished basements where venting needs to go out a sidewall, and homeowners who want a more modern, efficient tank but aren’t ready to go tankless.

3. Hybrid Heat Pump Water Heaters

A hybrid heat pump water heater uses heat pump technology to pull warmth from the air around it and transfer that heat into the water in the tank. Most models also have electric elements for backup or high-demand modes.

How hybrid systems work

Think of it like a reverse refrigerator. Instead of pushing heat out of a box, the heat pump pulls heat out of the surrounding air and dumps it into the water. That process uses far less energy than traditional electric resistance heating.

Pros

  • Some of the lowest operating costs of any water heater type
  • Great for homeowners focused on energy savings and rebates
  • Cools and dehumidifies the space around the unit (bonus in many basements)
  • Multiple modes: efficiency, hybrid, and high-demand

Cons

  • Higher upfront cost than standard electric tanks
  • Needs enough air volume and room to “breathe”
  • May be noisier than a standard tank (fan/compressor sound)
  • Best performance in spaces that aren’t extremely cold year-round

Best for

Homeowners planning to stay in their home for several years, who want to cut utility bills and take advantage of energy-efficient technology. Especially good in basements or utility rooms with enough space.

4. Atmospheric Vent Gas Water Heaters

An atmospheric vent water heater is the classic gas tank many homes already have. It uses a vertical metal vent or chimney and relies on natural draft (hot air rising) to carry exhaust out of the home.

How atmospheric systems work

The burner sits at the bottom of the tank. When it fires, exhaust rises up through a draft hood and into a metal vent or chimney. There is no fan or blower; the venting relies on proper chimney design and good draft.

Pros

  • Generally the lowest upfront cost for gas water heaters
  • Simpler design, fewer moving parts than power vent units
  • No electrical connection needed for the blower
  • Familiar option when simply replacing “like for like”

Cons

  • Relies on a good chimney and draft to vent properly
  • Less efficient than many modern options
  • Can backdraft if the venting system isn’t right
  • Not ideal for many newer, tightly sealed homes

Best for

Homes with an existing, properly sized chimney where budget is the main concern, and energy bills are not the top priority.

Quick Comparison: Which Direction Should You Lean?

Efficiency & Comfort

Tankless

Endless hot water and good efficiency when sized and installed correctly. Great for busy families who are tired of running out of hot water.

Flexible Venting

Power Vent Tank

A solid middle ground if you want a standard tank with modern venting. Ideal when you don’t have a good chimney or want sidewall venting.

Lowest Operating Cost

Hybrid Heat Pump

Highest efficiency and biggest long-term savings if your space and electrical setup can support it. Especially attractive with available rebates.

Budget Friendly

Atmospheric Vent

Basic, familiar gas tank. The lowest upfront price, but not the most efficient and not always ideal for newer or tightly sealed homes.

Not Sure Which System Fits Your Home?

The “right” water heater isn’t the same for every house in the Rockford and Stateline area. It depends on:

  • How many people live in your home
  • How many showers, bathrooms, and fixtures you have
  • Your gas and electric service size
  • Where the water heater is located (basement, utility room, garage, closet)
  • Your budget now and your long-term energy goals

When we come out for a water heater consult, we don’t just swap the tank and leave. We look at your venting, gas line, electrical, drain options, and how you actually use hot water every day. Then we walk you through your options in plain language.

Need help deciding? A quick visit from a licensed plumber can save you from choosing the wrong system and paying for it on your gas or electric bill for years.

Schedule Your Water Heater Consultation

Serving Rockford, Machesney Park, Loves Park, Roscoe, and the surrounding areas. We’ll help you choose the right water heater, install it to code, and haul the old one away.