Choosing a New Water Heater

When you need a new water heater for your home, you have many different options and features to consider.  Your plumbing contractor can help you choose and install a water heater that’s right for your home, but before you start shopping you should understand the difference between types of water heaters and how to choose one that will efficiently provide sufficient hot water for you and your family.

There are many different types of water heaters available.  The most common type is a conventional storage type water heater that heats a tank of water and keeps it hot for use when needed.  Demand water heaters (also called tankless water heaters) are more efficient than storage type water heaters and take up less space.  They only heat water as it is needed.

Heat pump water heaters are even more efficient because they use electricity to move heat rather than to create heat.  They are often combined with a heat pump heating and cooling system.  Solar water heaters use sunshine to heat water for your home.

The operating cost of the water heater is often more important than the initial cost of the appliance.  In addition to the cost of the water heater, you should factor in the cost of maintenance and the cost of the fuel to operate the water heater.

You may live in an area where several types of fuel are available.  Electricity, natural gas, propane, and fuel oil are common fuels for water heaters.  Fuel costs vary throughout the country and you should compare the fuel costs for fuels available in your area to determine what type of water heater is the most cost effective.

Standard or Tankless Water Heater?

If it’s time to replace your existing water heater or if you are building a new home, talk to a good plumbing contractor who handles water heater installation and repair about whether a standard tank-type water heater or a tankless water heater would be the best choice for your situation.

Tank-type water heaters have been the standard for residential applications for decades, but in the last ten years or so tankless or “on-demand” water heater have become a popular choice for a water heating system.  The allure of tankless water heaters include lower energy costs and an endless supply of hot water.  In addition, tankless water heaters take up less space than standard water heaters.

There are advantages and disadvantages of both types of water heaters to consider before choosing a system.  The initial outlay for a tank-type water heater is much less than for a tankless water heating system.  In addition, modern tank-type water heaters are more efficient than those produced ten years ago which reduces the difference in energy usage between the two types of water heaters.

Tankless water heaters are more efficient and use less energy because, unlike standard water heaters, they do not constantly keep a tank of water hot.  They only heat water as it is needed.  However, with an electric tankless water heater, some of the cost savings can be lost if hot water is used during peak demand times and the utility company charges a demand premium.  This is not a concern for natural gas or propane tankless water heaters.

Also, a tankless water heater produces endless hot water only as long as the flow rate is not exceeded.  If the tankless water heater is undersized, then using too much hot water such as doing laundry while taking a shower or two showers running at the same time can be a problem.

Choosing a Water Heater

These days homeowners have a lot of options when choosing a new water heater.  Before choosing a new water heater, you should consider the different types of water heaters available and choose a type and size that is right for your home.  Keep in mind that if you choose a qualifying energy efficient water heater, you may be eligible for a tax credit of 10% of the cost of the water heater up to $300.

There are several different types of water heaters on the market today.  A conventional storage type water heater is a popular option.  These keep 20 to 60 gallons of water hot and ready to use at all times.  These are less efficient than other types of water heaters because they keep water hot even when you are not using it.

Tankless or on-demand water heaters heat water as it is needed instead of storing it.  Since they do not have the energy loss associated with storing hot water, they are more efficient than conventional water heaters and can save money on your energy bill.  One concern with tankless water heaters is that they may not be able to keep up with the demand if multiple demands for hot water are made at the same time such as washing clothes and taking a shower.

Heat pump water heaters use electricity to move heat from the air or ground to heat water instead of heating the water directly with a flame or heating element.  These are the most efficient type off water heaters, but also the most expensive.  Also, they are slower to heat water than conventional water heaters.