Best LP Water Heaters for Replacing a 40 Gallon Tank: Efficient Propane Options
Answering buyers: If you’re replacing a 40 gallon tank with a propane (LP) solution, consider LP tankless models, compact outdoor units, and high-capacity indoor options that ensure steady hot water on demand. The best picks below are suited for small-to-mid homes, busy households, and outdoor setups where LP gas is readily available. A quick summary table is provided after the introduction to help compare core specs at a glance.
| Product | Type | Best For | Notes |
|---|---|---|---|
| Noritz EZTR40LP | Indoor Tank Replacement Tankless | Homes needing continuous hot water with a direct 40 gal tank replacement | High efficiency; seamless swap for 40 gal tank systems |
| CAMPLUX WA528 | Outdoor Tankless Propane | Outdoor setups; multi-point demand | CSA certified; strong flow for multiple points |
| MIZUDO 199k BTU Tankless | Indoor Tankless Propane | Large families; whole-house hot water | WiFi/app control; high GPM |
| Westinghouse Outdoor Propane Tankless | Outdoor Tankless | Outdoor installation; moderate multi-fixture use | ±1°F temp stability; remote control option |
| forimo 5.26GPM Propane Portable | Portable Outdoor LP | Camping, cabins, boats; temporary hot water | Compact and portable; simple setup |
Noritz EZTR40LP 40 gal Tank Replacement Indoor Tankless Water Heater

Product type: Indoor tankless propane unit designed to directly replace a standard 40 gallon tank. Best for homeowners who want continuous hot water without tank space and with high efficiency. This model fits existing venting and plumbing with a direct replacement approach.
Best for: Households upgrading from a 40 gallon tank who want endless hot water with a compact indoor footprint and high efficiency. This unit is chosen for its straightforward replacement path and presumed compatibility with standard venting.
Caution: Ensure your venting and gas supply meet installation requirements for a tankless LP heater. Some homes may require professional gas line assessment.
CAMPLUX WA528 Outdoor 5 Tankless Water Heater (LP)

Product type: Outdoor propane tankless water heater with CSA certification. Delivers up to 6.4 GPM under typical conditions, suitable for simultaneous use across multiple outlets. Includes safety features and protection systems for outdoor installations.
Best for: Outdoor setups where hot water is needed at multiple points, such as outdoor kitchens, bathrooms, and laundry areas, with reliable on-demand performance.
Caution: Outdoor use means exposure to weather; ensure proper enclosure and venting per manufacturer guidance.
MIZUDO Propane Tankless Indoor 199,000 BTU

Product type: Indoor propane tankless unit with high flow (10.3 GPM). Designed for large households and multiple fixtures, with WiFi/app control and CSA certification. Emphasizes energy efficiency by delivering hot water only on demand.
Best for: Large households or homes needing consistent hot water across many fixtures simultaneously, including baths, showers, and multiple sinks.
Caution: Higher input BTU requires appropriate gas supply and venting; verify compatibility with current gas line capacity.
MIZUDO Propane Indoor/Outdoor 5.1 GPM Tankless (GEN 3)

Product type: Convertible installation tankless heater that supports indoor or outdoor setup with LP gas. Provides up to 5.1 GPM, CSA certified, and designed for whole-house use with smart control features.
Best for: Homes needing installation flexibility and the option to relocate or reconfigure the setup as space changes, while maintaining on-demand hot water.
Caution: Convert between indoor and outdoor requires kits; ensure you have the proper installation accessories before switching configurations.
Rheem 72-40-2 40 Gallon Electric Water Heater

Product type: Electric 40 gallon water heater with Glas-Lined tank and R-Foam insulation. Includes anode rod protection against corrosion, offering a different fuel choice for homes where electrical heating is preferred or required.
Best for: Homes where electric heating is already primary or preferred, with a need to replace a 40 gallon tank using a propane-adaptable approach through conversion plans or hybrid setups.
Caution: This is electric rather than LP; not a direct LP replacement. Consider engine pairing or professional guidance for LP integration if propane use is desired.
Buying Guide: LP Water Heaters In A 40 Gallon Replacement Context
- Fuel availability and compatibility: Confirm LP (propane) service and venting options. Tankless LP units rely on gas supply and venting configurations; ensure your home supports the chosen setup.
- Installation type: Indoor tankless replacements can save space but may require venting and gas line adjustments. Outdoor units offer weather resistance but require proper enclosure and weatherproofing.
- Flow capacity (GPM): Evaluate peak load: showers, sinks, laundry, and kitchen usage. For larger homes, prioritize higher GPM (6–10 GPM) with stable temperature control.
- Temperature stability: Self-modulating and advanced modulation systems help maintain consistent temperatures, reducing cold bursts during multi-point use.
- Safety and certifications: Look for CSA or CE certifications, anti-freeze protections, flame failure detection, and dry-fire protection as part of core safety features.
- Smart controls and remote monitoring: WiFi-enabled models offer temperature scheduling, energy-use tracking, and maintenance alerts, which can simplify long-term management.
- Maintenance considerations: Tankless systems typically require regular descaling in hard water areas. Ensure access to service professionals as needed.
- Installation costs vs. long-term savings: While upfront costs may be higher for tankless LP units, energy efficiency and endless hot water can yield savings over time.
Frequently Asked Questions
- Can I replace a 40 gallon tank with a tankless LP heater? Yes, many LP tankless models are designed to replace or upgrade a 40 gallon tank setup, but check venting, gas line capacity, and space requirements.
- What is GPM and why does it matter? GPM (gallons per minute) indicates how much hot water a unit can deliver; higher GPM supports more simultaneous outlets.
- Is outdoor installation safe for LP water heaters? Outdoor units are designed for weather exposure but still require proper weatherproofing, clearance, and venting per the manufacturer.
- Do LP water heaters require professional installation? Many do, especially tankless models due to venting, gas supply, and code compliance. Check local regulations.
- What maintenance is typical for tankless LP heaters? Regular descaling in hard water areas, periodic gas line checks, and occasional professional servicing are common.
- Are there safety features I should prioritize? Look for flame failure detection, anti-freeze or freeze protection, dry-fire protection, and exhaust monitoring.