Choosing a new water heater can feel like a maze of tank sizes, energy factors, and brand claims. Three of the most trusted brands homeowners consider are State, Rheem, and AO Smith. Each offers a range of electric, gas, and tankless water heaters, but which brand is right for your home?
This guide will break down reliability, efficiency, cost, warranties, and real-world user experiences to help you confidently select your next water heater in 2025.
🏭 Who Makes State, Rheem, and AO Smith?
State Water Heaters: Owned by AO Smith, State has been producing durable water heaters for over 70 years, focusing on innovative features like self-cleaning systems and robust warranties. State water heaters are manufactured in the USA.
Rheem: Founded in 1925, Rheem is a leading manufacturer in residential and commercial water heating, known for energy efficiency and broad product variety, including hybrid heat pump water heaters.
AO Smith: One of the largest water heater manufacturers globally, AO Smith also owns State and produces units with advanced technology and a broad distribution network.
Learn more about each brand:
🔋 Gas vs. Electric vs. Tankless: Brand Strengths
State
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Gas: Reliable models with fast recovery times and good energy factors.
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Electric: Durable glass-lined tanks and budget-friendly options.
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Tankless: Compact, endless hot water with Energy Star-qualified models.
Rheem
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Gas: Wide selection with eco-friendly, low NOx models.
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Electric: Standard and hybrid electric options for higher efficiency.
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Tankless: WiFi-enabled tankless options with recirculation technology.
AO Smith
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Gas: High BTU output and Energy Star models for large families.
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Electric: Broad lineup, including heat pump hybrid water heaters.
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Tankless: Compact designs with efficient operation.
For tankless considerations, see Energy.gov - Tankless Water Heaters.
🔍 Warranty & Reliability Comparison
State
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6-10 year limited warranties on most models.
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Known for durable tanks and glass lining reducing corrosion.
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Strong warranty support under AO Smith.
Rheem
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6-12 year limited warranties on various models.
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Consistently high customer satisfaction with reliable performance.
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Good nationwide service network.
AO Smith
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6-12 year warranties, depending on model.
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Innovative features like self-cleaning systems and digital displays.
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Easy-to-source replacement parts.
Learn more: Consumer Reports - Water Heater Reliability.
💸 Cost Comparison: Upfront and Long-Term
| Brand | Typical 50-Gallon Electric | Typical 50-Gallon Gas | Tankless | Maintenance Costs |
|---|---|---|---|---|
| State | $500 - $750 | $600 - $900 | $900 - $1,500 | Low |
| Rheem | $550 - $800 | $650 - $950 | $1,000 - $1,600 | Low |
| AO Smith | $500 - $800 | $600 - $950 | $950 - $1,600 | Low |
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Tankless models cost more upfront but save on energy bills over time.
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Electric models are often less expensive to install.
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Gas models have lower operating costs in areas with affordable natural gas.
Calculate your long-term energy savings using Energy Star's Water Heater Calculator.
🌱 Energy Efficiency and Sustainability
All three brands offer Energy Star-qualified water heaters:
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State and AO Smith: Advanced insulation, heat traps, and efficient burners.
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Rheem: Industry leader in hybrid heat pump water heaters with up to 4x efficiency.
Tankless options across all brands offer energy savings of 20-34% depending on usage. For rebates, check DSIRE for federal, state, and local incentives.
🛠️ Installation Considerations
Tank Water Heaters:
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Electric models from all brands are straightforward to install.
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Gas models require proper venting and may need a professional to size gas lines.
Tankless Water Heaters:
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Require professional installation.
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May need gas line upgrades.
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Proper venting and condensate drainage are critical.
🏆 Which Brand Should You Choose? Use-Case Scenarios
✅ Best for Budget Buyers: State and AO Smith offer competitively priced models with solid warranties.
✅ Best for Energy Efficiency: Rheem leads with hybrid heat pump water heaters.
✅ Best for Endless Hot Water: State and Rheem tankless models with high GPM ratings.
✅ Best for Tight Spaces: AO Smith and State tankless or lowboy electric models.
✅ Best Warranty Support: Rheem and AO Smith have strong networks for parts and service.
🔗 Where to Buy and Next Steps
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Measure your installation space.
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Identify your household hot water needs.
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Check your utility rates for gas vs. electric.
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Compare available models on The Furnace Outlet.
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Book a licensed installer for a quote and installation timeline.
✅ Conclusion: Making Your Choice with Confidence
Choosing between State, Rheem, and AO Smith comes down to your hot water needs, your budget, and your efficiency goals:
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State: Reliable, budget-friendly with durable construction.
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Rheem: Top-tier energy efficiency with hybrid technology.
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AO Smith: Broad selection with advanced features.
Each brand provides high-quality options that will serve your household for years when properly sized and maintained.
In the next topic we will read more about: Is a State Tankless Water Heater Worth It? What Homeowners Should Know
