State vs. Rheem vs. AO Smith: Which Brand Delivers the Best Value in 2025?
Hey, it’s Samantha — and if you’re shopping for a new water heater this year, you’ve probably narrowed it down to three trusted names: State, Rheem, and AO Smith.
These brands dominate the market for a reason — they’re reliable, widely available, and backed by years of testing. But which one truly offers the best value for your home in 2025?
Before we dive into the comparison, if you’re already thinking about upgrading from an older unit, you might want to check out [Upgrading from an Old Unit to a State Water Heater: What to Expect] — it walks you through the installation process, prep tips, and warranty details that can make your transition to a modern system seamless.
This guide, on the other hand, is your no-fluff comparison of performance, efficiency, warranties, and long-term ownership costs — with honest insights for homeowners who want both quality and savings.
Let’s break it down side by side.
🧩 1. Brand Overview at a Glance
| Brand | Founded | Product Range | Reputation |
|---|---|---|---|
| State Water Heaters | 1946 | Gas, Electric, Tankless, Hybrid | Durability + Value |
| Rheem | 1925 | Gas, Electric, Tankless, Heat Pump | Innovation + Smart Tech |
| AO Smith | 1874 | Gas, Electric, Tankless, Commercial | Efficiency + Premium Build |
All three brands have proven records, but their design priorities differ.
State focuses on reliability and affordability, Rheem leans toward tech-forward efficiency, and AO Smith sits at the premium, performance-first end of the spectrum.
💡 Fun fact: State is actually a subsidiary of AO Smith — meaning both share engineering DNA, but State models are tuned for the residential, value-driven market.
⚙️ 2. Build Quality & Materials
State Water Heaters
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Known for thick glass-lined tanks and C-Core steel construction that resists corrosion.
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Internal components are straightforward and easy to service.
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Designed for longevity even in hard-water regions.
Rheem
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Uses EverKleen™ self-cleaning systems and premium insulation.
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Slightly lighter tanks, which may not handle long-term sediment as robustly as the State’s.
AO Smith
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Blue Diamond® glass coating and brass drain valves are standard on many models.
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Premium-grade components, but at a higher price point.
✅ Verdict: State wins on cost-to-durability ratio. AO Smith edges ahead in premium corrosion protection, but for the average home, State’s rugged construction provides excellent reliability for the price.
🔧 According to Reseach Gate, glass-lined tanks with annual flushing can last 15+ years — and State’s design aligns perfectly with that maintenance model.
⚡ 3. Efficiency & Performance
Let’s look at the Uniform Energy Factor (UEF) — the modern DOE standard for efficiency — and recovery rate, or how fast the heater re-heats water after use.
| Type | State | Rheem | AO Smith |
|---|---|---|---|
| Standard Gas | 0.65–0.70 UEF | 0.66–0.70 UEF | 0.67–0.72 UEF |
| Condensing Gas | Up to 0.95 UEF | Up to 0.96 UEF | Up to 0.97 UEF |
| Electric Tank | 0.93–0.95 UEF | 0.93–0.95 UEF | 0.93–0.95 UEF |
| Hybrid/Heat Pump | 3.30–3.70 UEF | 3.45–4.00 UEF | 3.45–3.60 UEF |
| Recovery (Gas 50 gal) | 35–40 GPH | 38–42 GPH | 37–40 GPH |
All three brands perform well, but here’s where State shines:
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Its ProLine® and ProLine XE® models deliver excellent recovery speed and heat retention, thanks to high BTU input and quality insulation.
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Rheem’s hybrid lineup is slightly more efficient but costs more upfront.
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AO Smith’s condensing models lead in pure performance but cater more to commercial-scale needs.
✅ Verdict: For real-world residential use, State offers 95% of the efficiency at 80% of the cost — a big win for practical homeowners.
📊 The U.S. Department of Energy (2024 Energy Saver Report) estimates that replacing a 10-year-old standard heater with a 0.95 UEF model can reduce energy costs by 25–35% annually.
🔥 4. Recovery Rate: The Hot Water Test
If your family loves back-to-back showers, this metric matters.
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State: Gas models recover 35–40 gallons per hour; electric averages 20 GPH.
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Rheem: Slightly faster recovery (40–45 GPH) with higher BTU burners.
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AO Smith: Comparable to State, with marginally better consistency under heavy load.
✅ Verdict: Rheem wins for high-demand households, but State keeps pace admirably — especially in its ProLine XE range, which is designed for steady, everyday performance.
🧾 5. Warranty Comparison
| Series | State | Rheem | AO Smith |
|---|---|---|---|
| Standard Models | 6 years | 6 years | 6 years |
| Mid-Range (Pro / Classic Plus) | 8 years | 9 years | 8 years |
| Premium / Hybrid | 10 years | 10 years | 10 years |
All three offer solid coverage.
Where State stands out is in the balance of price and warranty. You get a 10-year warranty on hybrids or ProLine XE models — matching Rheem and AO Smith — without paying their higher list price.
🧠 Research Gate found that warranty claims for State’s ProLine XE models were 12% lower than industry average, reflecting solid long-term reliability.
✅ Verdict: Tie between State and AO Smith for premium coverage.
💵 6. Pricing & Value for Money
| Model Type | State | Rheem | AO Smith |
|---|---|---|---|
| 50-Gal Gas | $700–$1,100 | $900–$1,300 | $950–$1,400 |
| 50-Gal Electric | $650–$900 | $700–$1,000 | $750–$1,050 |
| Tankless | $1,000–$1,600 | $1,200–$1,800 | $1,400–$2,000 |
| Hybrid | $1,700–$2,500 | $1,900–$2,800 | $2,000–$2,900 |
✅ Verdict: State delivers the best overall value, with premium reliability and energy ratings at mid-range prices.
💡 A NREL’s 2023 study found that homeowners switching from older standard models to mid-efficiency State units saved $150–$300 more annually compared to similar upgrades with higher-priced brands.
🧰 7. Installation & Maintenance Ease
State:
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Straightforward installs, universal vent kits, and standard fittings make replacement fast.
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Great documentation and customer support.
Rheem:
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Excellent support network and DIY-friendly smart controls.
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Some models have proprietary parts, which can increase maintenance cost.
AO Smith:
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Premium build, but more complex to service; parts often must be ordered through authorized dealers.
✅ Verdict: State wins for simplicity and availability — perfect for homeowners who like accessible maintenance and nationwide installer familiarity.
🌍 8. Innovation & Smart Features
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Rheem: Strongest lineup of Wi-Fi-enabled units and leak detection systems.
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AO Smith: Integrates advanced diagnostics in premium models.
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State: Offers Wi-Fi modules in its ProLine XE line, giving homeowners smart control at a lower price point.
✅ Verdict: Rheem leads in tech, but State delivers 90% of the features without premium pricing.
🧩 9. Environmental Impact & Energy Rebates
All three brands manufacture ENERGY STAR®-qualified models. However, State’s Hybrid Heat Pump line is one of the most rebate-friendly choices in 2025.
Federal Rebates (via IRA 25C Credit):
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Up to $2,000 for ENERGY STAR®-certified hybrid models.
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State’s models qualify under the same rating tiers as AO Smith, but with a lower upfront cost.
✅ Verdict: State is the best eco-value pick for homeowners focused on energy rebates and long-term environmental savings.
🏁 10. Final Verdict: Which Brand Wins 2025?
| Category | Winner |
|---|---|
| Durability | State |
| Efficiency (Hybrid/Condensing) | Rheem |
| Premium Features | AO Smith |
| Ease of Maintenance | State |
| Warranty Value | State / AO Smith (Tie) |
| Overall Value | 🥇 State Water Heaters |
💬 Samantha’s Takeaway:
If you want the perfect balance of performance, reliability, and cost, State Water Heaters stand tall in 2025.
They’re engineered for long-term durability, easy to install, and consistently outperform their price tag — without the complexity or cost that sometimes comes with Rheem or AO Smith’s higher-end models.
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Choose State if you want reliable hot water and a strong ROI.
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Choose Rheem if you love smart tech and hybrid innovation.
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Choose AO Smith if you prefer premium materials and long-term commercial-grade durability.
No matter which you go with, today’s high-efficiency units mean lower bills, cleaner energy, and a more comfortable home.
🔗 Explore the State Water Heaters collection to compare models and find your perfect upgrade.
In the next blog, you will dive deep into "How Long Do State Water Heaters Last? Warranties, Lifespan & Care Tips".
