Can You Keep Your Water Heater Outside?

If you're looking to free up space in your home, you may want to consider moving your water heater outside. Believe it or not, many homeowners are opting for outdoor water heater installation as a way to save space, reduce noise and eliminate the stress of indoor ductwork. However, not all water heaters are alike, and only a handful of models are suitable for outdoor use.

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Understanding the pros and cons of outdoor water heater installation can help you determine what will work best for your home.

Can You Keep a Water Heater Outside?

In most cases, you can keep a water heater outside if the unit is specifically designed to withstand the elements. Certain tankless water heaters and heat pump/thermodynamic water heater systems are crafted with durable materials and frost protection features that make them more resistant to colder outdoor temperatures.

What Types of Water Heaters Can Be Installed Outside?

Tankless gas, propane or electric water heaters and heat pump/thermodynamic water heaters are the two types of units you can install outside. Here's a breakdown of each type:

• Tankless water heaters. Tankless electric or gas water heaters are usually safe to install outdoors, as long as they're engineered for outdoor use. Propane tankless water heaters are commonly installed outside or in RVs and garages. Propane water heater tanks must also be specifically designed for outside use.

• Heat pump/thermodynamic water heaters. These types of water heaters use electricity to transfer heat from outdoor air to outdoor water tanks. The water then moves from the outdoor tank into your home's plumbing system. Heat pump water heaters can be installed outdoors if they're either climate-rated or placed in weatherproof enclosures.

Why Might Someone Install an Outdoor Water Heater?

Homeowners prefer to install their water heaters outdoors for many reasons. Outdoor installation helps save space in compact areas like garages, laundry rooms and utility closets. Installing your water heater outside also allows for simple ventilation compared to venting the system through the roof or other indoor area.

Outdoor water heaters are generally easily accessible for more convenient maintenance and servicing and greatly reduce the risk of water damage in the event of leaks. Outdoor installation also eliminates indoor carbon monoxide risks as the exhaust vents outside.

Do You Need to Build an Enclosure for an Outdoor Water Heater?

Tankless water heaters with frost-proof features generally don't require outdoor enclosures. In colder climates, heat pump systems must either be climate-rated or installed inside weatherproof enclosures.

Water heaters require enclosures in colder climates because the water in the tanks can freeze when exposed to frigid temperatures. The increased pressure caused by the ice can also cause the tank to burst, potentially leading to water damage and costly repairs.

Outdoor water heater enclosures are commonly made with weather-resistant galvanized or alloy steel and feature access doors for servicing. Water heater enclosures must also have proper ventilation to comply with local regulations and codes.

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Does Climate Matter for Outdoor Water Heaters?

Climate is an important factor to consider when installing an outdoor water heater. In colder climates, water heaters run the risk of freezing and bursting during severe cold snaps. Cold outdoor temperatures can also contribute to colder incoming water, which takes longer to heat and may reduce overall efficiency.

All outdoor water heaters must have built-in freeze protection features to prevent the units from freezing and potentially bursting. While no regulations prevent outdoor water heater installation in colder regions, homeowners should follow winterization procedures such as pipe insulation to ensure safe operation.

Some helpful cold-weather hot water heater tips include:

• Heat tape. Wrapping your outdoor water heater's pipes in heat tape can add an extra layer of protection against frigid temperatures.

• Installation location. If you live in a colder region, consider installing your outdoor water heater in a sheltered area such as a garage, carport or covered patio. This may help prevent direct contact with strong, icy winds and other cold-weather elements.

• Insulation. Insulate your tank by wrapping it in an insulated water heater blanket. You can also wrap exposed pipes with insulated foam sleeves. Extra insulation can help prevent freezing and bursting while also lowering the risk of standby heat loss.

If you live in a warmer region, it's also important to take precautions when installing an outdoor water heater. If possible, install your system in a shaded area so it's not exposed to consistent direct sunlight. Extreme heat can cause excess stress on your heater's electrical systems and increase the risk of thermal expansion and bursting.