I currently have a 1989 Kenmore Natural Gas Water Heater with a standing pilot that works fine and is 40 gallons. The issue is that it vents out of a chimney that needs to be removed due to extreme deterioration. Since the chimney has to go, I need a water heater that vents out a side wall or does not require any venting, I am looking for the easiest and most cost effective solution. There is no power source near the water heater, however, the electric panel is nearby and has openings, so we can have electric run if necessary, but there's so many options that I do not know where to start. We have a household of 5, and there is always someone showering, the dishwasher is running 1-2 times a day, and of course the washing machine. The house also has 2 bathrooms, one with a 3/4 bath and the other a full bath. From what I have researched, electric water heaters do not require venting, but do require a power source and most sidewall vents for natural gas also require some form of power source. I am really looking for opinions on what has worked for others and how well you like them, whether that be electric, natural gas, or even tankless options. My main concern is the price and warranty. The water heater currently in my house works fine and has lasted for 29 years, however, reviews and information on newer water heaters seem to indicate that newer water heaters do not last as long or are giving people troubles. All I need is a sidewall or no vent option, that does not make my electric bills skyrocket (they are high enough) and something that works. If it matters, I live in the midwest and we have extremely cold and hot temperatures depending upon the year, so unsure if an outdoor tankless would be the best option either. Current location of the water heater is in the basement and that will be the location of the new one also.

Found out from Twin Valleys that if I put in a tankless that is over 6kw I will lose my total electric discount???