5 Best On Demand Propane Tankless Water Heaters

Your search for the best on demand propane tankless water heater ends here.

If you’re in the market for the best models that will just get the job done plain and simple, check out our on demand propane tankless water heater reviews.

Today, we’re going to present five top-rated propane-powered models available right now.

An on-demand or no-tank model not only saves your hard-earned money but also saves you time. Seriously, you don’t need to cope with a full tank of water heated continuously. Not only is this appliance efficient and practical, but also cost-effective and compact to install.

Propane-powered units provide more power, and as a result, they offer impressive flow rates on the market.

If the initial buying cost is not a crucial issue for you, check these five models.

Comparison Chart

Before diving into our list of heaters, let’s check all the essential specs of these five units.

  • Best Indoor Propane Water Heater: Rinnai V65iP: This unit delivers up to a 6.6 GPM flow rate, takes only 2 minutes to start delivering hot water, is ultra-compact and easy to install, uses 40% less energy, features the smart Control-R option, and has a life expectancy of 20 years.
  • Best Single/Multi-Use Water Heater: Eccotemp FV112-LP: A highly efficient tankless water heater for small homes, rated at 80,000 BTU per hour, has a flow rate of 4 GPM, temperature rise of 38 degrees, digital display, is easy to operate with manual controls, and is only suitable to use at elevations up to 2,000 feet.
  • Best User-Friendly Water Heater: Rheem RTG-84DVP Direct Vent: Designed for residential applications, this unit has a BTU of 180,000,8.4 GPM flow rate at 35A-degrees F rise, uses a 3/5 inch concentric vent system, boasts a user-friendly display, meets low NOx emission standards, and is suitable for elevations up to 9,840 feet.
  • Best Budget Propane Water Heater: Marey GA10LP Power: This model boasts 54% to 87% energy efficiency, supplies water for up to 3 points of use at a go, provides 2.7 GPM at 115 degrees F, doesn’t require electricity to operate, boasts a digital display panel, is compact, and uses a ½-inch gas line.
  • Best Energy Efficient Water Heater: Takagi T-H3S-DV-P Condensing: The unit features an advanced condensing design, boasts superior construction, is energy-efficient, has a gas input of 180,000 BTU, produces enough water for 2 to 3 bathrooms, and meets the ultra-low NOx gas emission standards.
Best On Demand Propane Water Heater

Here are the Best On Demand Propane Tankless Water Heaters

We made our shortlist according to their performance. features and ultimately value for money.

These models will cut down your spending. They’ll deliver hot water on demand. Investing in any of this unit will certainly be wise addition to any household or small commercial applications. It’ll also be a good investment in the long run.

1. Rinnai V65iP Indoor Tankless Water Heater

Rinnai V65iP Indoor Tankless Water Heater

Also Available, Rinnai RL Series(High Efficiency) RRL94iP, Large, Silver, 9.4 GPM

11 GPM, Rinnai RU199iP, ENERGY STAR Qualified with Uniform Energy Factor of .93

Our Review: V65iP is one of the industry’s best-selling indoor tankless water heaters, and for good reasons. It is renowned for its smarter design that delivers superior comfort, reliability, and convenience.

For those who don’t know, Rinnai is a leading brand for manufacturing home and commercial–grade heating products. They’ve excelled at delivering both propane and natural gas water heaters.

V65iP is ideal for indoor installation for small to medium-size homes with two to four fixtures. It efficiently delivers up to 6.6 gallons per minute of hot water. And it takes only one to two minutes to start delivering hot water.

The unit is easy to install, and the ultra-compact size allows you to install it anywhere, saving precious floor space in your home. You can even install it in non-traditional areas such as the attic, crawl space, or even a closet.

This no-tank unit heats water only when you need it. So, it uses 40% less energy than any traditional tank heater and conserves water. Due to PVC pipe hosing, it allows the heater to heat up faster and keep it hot for long. What’s more, the corrosion-free elements make the unit durable.

V65iP uses propane gas as fuel.  Although the energy consumption of propane is somewhat higher than that of natural gas, it works efficiently.

You’ll appreciate the concept of the smart Control-R option with this model. The WiFi connectivity allows you to connect it to your mobile devices easily. So, you can change the settings and control this appliance from anywhere.

The average life expectancy of this unit is 20 years. However, the Rinnai stands behind this model with a 10-year warranty for heat exchangers. Apart from this, it also offers a five-year warranty on the various components present and a 1-year warranty on the labor.


  • Perfect for small to medium homes or remodels
  • Reliable and high-performing
  • Ultra-compact; fits in any small space
  • High-quality construction
  • Impressive residential factory warranty
  • Ultra-Low NOx
  • SCAQMD (South Coast Air Quality Management District) approved


  • Indoor use only

2. Eccotemp FVI12-LP Tankless Water Heaters

Eccotemp FVI12-LP

Our Review: Eccotemp FVI12-LP is a highly efficient no-tank water heater, perfect for smaller homes, cabins, apartment or townhome. Using one or two hot water applications simultaneously is a breeze with this unit. That means running a sink and taking hot shower at the same time is effortless.

It uses liquid propane gas as a fuel source and instantly heats water as soon as water passes through the heater exchanger. It needs a 120V power outlet for the power source for ignition.

Rated at 80,000 BTU per hour and 4.0 GPM flow rater with a temperature rise of 38 degrees, the FVI12-LP can instantly meet your hot-water needs! It comes included with a 110/120-volt UL listed power cord that powers the internal Exhaust Fan, PCB, and Digital Display.

FVI12-LP activates only when in use, making it an energy saver. Powerful ventilation improves safety and efficiency for indoor uses.

The unit is easy to operate with manual controls. There are two knobs at the face of the unit to regulate the gas pressure and water temperature separately. The digital temperature display is easy to read and designed for precise adjustment.

This model is suitable to use at elevations up to 2000 feet. However, installation above 2000 feet may affect the overall performance and efficiency of the product.

This small, compact tankless unit with a modern, sleek design blends seamlessly with any décor.


  • Ultra-efficient and safe
  • Separate control for temperature and gas pressure
  • Precise temperature and water-flow adjustment
  • Compact and space-saving design
  • Minimal noise output
  • Stainless steel horizontal vent kit included
  • Very reasonably priced
  • Two-year warranty for heat exchanger and other parts


  • Needs certain adjustments to achieve your preferred temperature

3. Rheem RTG-84DVP Direct Vent Tankless Water Heater

Rheem RTG-84DVP Direct Vent Tankless Water Heater

Our Review: If you’re looking for a high-quality no-tank water heater with a decent GPM, the Rheem RTG-84DVP deserves a solid mention.

This unit runs on liquid propane gas. It’s designed for residential applications and sports an impressive BTU of 180,000. The durable construction and high-quality components ensure that it’ll heat water on demand for many years to come.

The impressive 8.4 GPM flow rate at 35A-degree F rise is more than enough to simultaneously serve multiple bathrooms or kitchens. Notably, its minimum flow rate is 0.26 GPM, whereas the minimum activation flow rate is 0.40 GPM.

This model not only comes with a generous, flowing rate, but it also incorporates a ton of eco-friendly features to boot. So if you do have a few hundred bucks to spare, RTG-84DVP will pay for itself in the long run.

Sophisticated technology has reduced the size of this unit and enhanced the features and benefits. It is worth noting that the housing is one-third the size of a conventional water heater.

The compact shape and low profile design allow installation at any space and saves more storage space for something else.

It uses a 3/5” concentric vent system with a built-in condensate collector. The user-friendly digital display shows temperature setting and maintenance codes. The easy-to-read-out display helps you set your desired temperature and take a look at the unit’s status from time to time.

What’s more, the included UMC-117 Remote control thermostat eases out the operation from a distance. Plus, the unit comes with 10 feet of thermostat wire which is enough for most household applications.RTG-84DVP is tested for High-altitude capability – up to 9,840 feet elevation above sea level.

Most importantly, it meets the low nitrogen oxide emission standards. That means it’ll help you to conserve the environment with its Low NOx that cuts back on harmful emissions.

Finally, it comes with a 12-year warranty for the heat exchanger, five-year on parts, and 1-year for labor.


  • Great for homes with 2 to 3 bathrooms
  • Innovative technology
  • User-friendly and safe to use
  • Easy to operate
  • Dependable and energy-efficient
  • Small and compact design
  • Energy star rated
  • Environment-friendly
  • Third-party efficiency certified by GAMA


  • At cooler climate areas, it may get lower GPM, and the water may need more time for heating.
  • Warranties are only valid if a licensed technician installs the unit.

4. Marey GA10LP Power Tankless Water Heater

Marey GA10LP

Our Review: MAREY has been in the water heating business since 1955, combining tradition and innovation. They produce high-quality quality tankless water heaters at an affordable price, which can be one of the best investments to make. Marey GA10LP is no different.

If you want instant and on-demand hot water for your family at multiple points of use, Marey GA10LP is the product for you! It activates and instantly heats cold water in mere seconds as it flows.

This on-demand water heater heats water only when needed, saving energy. It boasts of about 54% to 87% energy efficiency. It is perfect for supplying unlimited hot water for up to two or three points of use simultaneously.

If you are environmentally conscious, you’ll be impressed with its water-saving capabilities.

It can provide up to 2. 7 Gal. per minute for a perfect shower at 115-degree F output water temperature. Conveniently, you can regulate the water flow and gas flow to a better temperature.

Marey GA10LP does not require electricity, so this model is a perfect alternative for those households experiencing frequent power outages. You’ll only need two D-cell batteries for the ignition and a venting (not included).

This appliance incorporates adjustable water and gas regulator knobs to ensure the perfect temperature for different tasks. With its winter/ summer regulator knob you can get water with the desired level of hotness. What’s more, the digital panel displays the temperature of out-coming water, among other statistics.

Its compact design saves space, and it is incredibly straightforward and easy to install almost anywhere! Conveniently, this unit uses a ½-inch gas line as opposed to others that use ¾-inch. So, you don’t need to bust some walls open.

The particular heater is safe to use. Thanks to its safety features such as over-heating-, anti-combustion, and gas pressure safety protector.

Marey GA10LP is the cheapest propane gas option in the market right now and even probably on this list. It also has lowest installation costs compared to other models.

The components and exterior is rustproof. That makes the unit durable, so you can use it for a long period without any water leakages.


  • Simplistic design
  • Compact, saves space
  • Saves up to 80% in energy
  • Easy to use
  • Easy regulation of temperature
  • No electricity needed
  • Smaller gas-line specs
  • Affordable price
  • Five-year warranty
  • CSA/UL listed


  • At only 3.1 GPM, this model has a considerably low output for simultaneous uses.

5. Takagi T-H3S-DV-P Condensing Tankless Water Heater

Takagi T-H3S-DV-P Condensing Tankless Water Heater

Our Review: Takagi is a reputable manufacturer from Japan that designs and manufactures exclusive no-tank water heaters since 1952.

Takagi T-H3S-DV-P is a popular and top-selling model of the T-H3 series for residential use. With its compact size and wall-mounting option, it occupies much less space than the conventional tank-type. However, don’t be fooled by its compact size; it scores pretty high when it comes to technology.

The advanced condensing design and cutting-edge technology of Takagi T-H3S-DV-P deliver reliable and worry-free water heating. It also saves you money and conserves energy.

This condensing model is one of the best heaters for energy conservation that offers superior energy efficiency.

It continually delivers hot water in a steady flow with less fluctuation and at the precise temperature as long as there is a demand. With gas inputs of 180,000 BTU, it produces enough hot water for two baths in colder climates or three bathrooms in warmer climates.

It utilizes durable stainless steel and a commercial-grade copper alloy-made heat exchanger that makes the unit robust and reliable.

Importantly, the T-H3S-DV-P meets ultra-low NOx gas emission standards, making it great for environmentally conscious users.

This model is a leader in safety features that includes troubleshooting diagnostic codes, surge- and overheat protection. And there is no pilot light to worry about. The built-in temperature controller is another nice addition of this model.

Finally, Takagi offers a 15-year warranty on the heat exchanger and a five-year on all other parts for residential applications.


  • Designed for mid-size household
  • Ultra-efficient and Energy Star rated
  • Incredible performance
  • Superior construction
  • Certified up to 10,100 ft. Altitude
  • Complies with Ultra-Low NOx regulations
  • Generous warranty period


  • Not an affordable option

How to Choose the Right On Demand Propane Tankless Water Heater

When it comes to picking the best model that will meet your needs for living a good life is one of the many challenges to deal with.

All of our shortlisted models are excellent in every aspect.

But which one will be the right fit for you?

Luckily, you do not have to worry about it. Our buying guide will help you in this regard.

Consider the following factors before you make your final buying decision.

Heater Dimensions

Although no-tank variations are smaller in size, propane-powered models require more space for their vents, burners, and valves. That means these variations will take up more space than their electric counterparts.

Check how much space you have available to mount the unit.


This is by far the most crucial point to take into consideration when buying a no-tank water heater for your household.

Calculate how many gallons of hot water do you need to use per minute simultaneously in multiple applications. Similarly, you’ll have to check the unit’s BTU and make sure it is suitable for your needs.

In general, the more your need is, the more powerful your heater needs to be. Getting the right power will ensure your selected model is sufficient for your home or business hot water requirements.

Safety Features

Most propane-powered instant water heater come with several safety features designed to prevent overheating- and surge. Some models are also equipped with troubleshooting codes.

Check what safety features your selected model comes with.


Warranty is great for any product, and so we are happy to see that all of our reviewed models offer them.

A generous warranty gives you protection if something goes wrong. It also gives you confidence that the manufacturer has faith in the build quality.

However, different brands offer different warranties. Always make sure you read carefully what the warranty covers before making your final decision about which to buy.

Some models cover defects on heat exchangers, while others go much further. A refund policy is also something that you have to check out.


These appliances come with different prices based on power, flow rate, energy efficiency, and built-quality. Although propane-powered models are somewhat expensive, it is just the initial buying cost. They tend to be cheaper in the long run as you use them.

Choose a model depending on your needs and budget.


That’s it!

These five above reviewed best on demand propane water heaters have exceptional quality, great features, and design.

We’ve carefully checked all the specs of these models. So, you can buy them with confidence.

All you have to do is make the final choice that match your needs, properly install it, and start enjoying the instant and affordable hot water when and wherever you need it.

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