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.
