What Is a Smart Water Heater?
By Bridget Coila
November 20, 2025
Whether you're prepping for a shower or doing household chores, having hot water available when you need it matters. However, traditional heaters keep a full tank hot at all times, driving up your energy bills by continuously heating water even when you're not home.
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A smart water heater is an energy-saving alternative that gives you total control over temperature adjustments, energy usage and overall operation via an app on your phone.
What Is a Smart Water Heater?
A smart water heater uses digital technology to track and adjust heating levels based on your preferences and household usage patterns. Smart water heaters use less energy than traditional versions — the heating element only turns on when hot water is needed, so water isn't being heated continuously. A smart water heater also learns to adjust its heating schedule based on when your family typically uses the most water. It can even detect leaks and alert you instantly if there's a potential problem.
How Does a Smart Water Heater Work?
A smart water heater connects to your home's Wi-Fi, which lets you control the appliance via an app on your smartphone, tablet or computer. You can use the app to adjust the water temperature or set a schedule to heat water at specific times each day. Sensors track appliance performance and send the data directly to the app for convenient access.
How Do You Control a Smart Water Heater?
A smart water heater is typically controlled via a dedicated smartphone app. Some models also let you connect to a home voice assistant so you can issue verbal commands.
Are Smart Water Heaters Tanked or Tankless?
Both tank and tankless smart water heaters are available. Smart tankless water heaters include models designed to heat water at a single faucet, as well as those intended to supply hot water to an entire home. If you have a tankless smart water heater, you can adjust the temperature remotely and monitor performance over time.
Tank water heaters with smart features include mini versions ideal for small spaces and household models with standard tank capacities ranging from 40 to 80 gallons or more.
Are Smart Water Heaters Gas or Electric?
Like standard water heaters, smart water heaters are available in both gas and electric versions. Smart gas water heaters have electronic ignition controls that connect to Wi-Fi but use gas to heat the water in the tank. There are also hybrid smart water heaters that use a heat pump for heating water but are controlled by electric components connected to an app.
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How Much Does a Smart Water Heater Cost?
Tankless smart water heaters range in price from $250 to $2,500 (CAD 351 to CAD 3,505), depending on the specific size and features you want. Mini smart tank heaters designed to supply hot water at up to three sinks range from around $200 to $300 (CAD 280 to CAD 421). Full-size tank heaters with smart controls range from around $650 (CAD 911) for a 40-gallon tank to $2,600 (CAD 3,645) or more for an 80-gallon tank.
Smart water heater controllers are another option. These devices attach to your existing tank-style water heater and add smart controls without the need to purchase a new appliance. These typically cost around $150 (CAD 210)
What Are the Main Differences Between Regular Water Heaters and Smart Water Heaters?
The main differences between regular and smart water heaters relate to energy use, safety and control.
Conventional water heaters are designed to operate independently without any input from you. They heat water to a set temperature, store it in a tank and dispense it as needed. Tankless models heat water at the time of use instead of storing it in a tank. Smart water heaters of either type give you more precise control over the hot water used in your home. They let you adjust the thermostat for different users, set timers to heat water only when it's needed and alert you about leaks or maintenance issues.
Smart water heaters also provide cost savings over time. By not heating water continuously, they help reduce your household energy bills.
What Is the Price Difference Between Regular and Smart Water Heaters?
As more manufacturers add smart controls to their most popular product lines, smart water heaters are becoming comparable in price to new conventional water heaters. A specific brand and model with smart controls may cost slightly more than the same model without the feature, but highly rated smart water heaters can be found in almost every price range, including under $1,000.
All CAD conversions are based on the exchange rate on the date of publication.
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