The disclosed technology includes an on-demand water heater which uses an electric heat source to heat the water. The on-demand water heater can have a low fluid capacity heating chamber which has an inlet and an outlet, an electric heat source for heating the water, and a controller to control the electric heat source and maintain the temperature of the water at a predetermined temperature setting. The on-demand water heater can be powered by a direct current power source. The on-demand water heater can also utilize a solar thermal system to provide additional heat to the water.