A water heater is one of those home appliances that you don't think about until it stops working. However, a water heater can be a major energy eater, whether you're buying one for a new home or replacing your decades-old water heater. According to the US Department of Energy, water heating is the second-largest energy expense for most homes, accounting for nearly a fifth of all of your home's energy usage in a month -- which is why we put together this water heater buying guide.

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Finding the water heater model you want in your home is not a decision you should take lightly. Water heaters will last anywhere from 10 to 20 years typically, depending on the type, which means you'll live with your choice -- and its expenses -- for up to two decades. You want that price tag to be as small as possible while getting the hot water you expect. 

You'll have to wade into the deep end and sort through the different types of water heaters, fuel sources, capacities, costs over time and additional features. While it may seem overwhelming at first, we're here to help you decide which water heater is right for you and your home. 

Types of water heaters

If you're new to the water heater market, you might not even realize there are different types to choose from. While storage water heaters remain the most common, there are a variety of water heater types, each with their own unique set of features and functions. 

Storage water heater

"Storage water heaters, also called tank water heaters or traditional water heaters, use electricity or gas for heating water," said Kelly Russum, owner of KC's 23 ½ Hour Plumbing and Air Conditioning in Palm Springs, California. The storage water heater is the most common type of water heater for both residential and commercial buildings. It consists of a tank that holds a certain amount of water, typically ranging from 20 to 80 gallons. The tank is insulated to help retain heat and keep the water warm until it is needed.

A storage water heater heats water using an electric heating element or a gas burner located at the bottom of the tank. As cold water enters the tank through a supply pipe, hot water rises to the top of the tank where it's distributed to the rest of the house when a faucet or appliance calls for hot water.

Storage water heaters are relatively affordable, are simple to install and can supply hot water to multiple fixtures simultaneously. 

"Storage water heaters can offer between 20 to 80 gallons of water right away, which makes them an excellent solution for big families of four or six," Russum said.

However, they are energy inefficient and prone to lose heat from the tank even when hot water is not being used. Regular maintenance, such as flushing the tank to remove sediment buildup, keeps them as efficient as possible and prolongs their lifespan. 

Tankless water heater

A tankless water heater, sometimes called an on-demand or instantaneous water heater, doesn't use a storage tank and heats water only when it is needed, providing a continuous supply of hot water on demand. When a hot water tap is turned on, cold water travels through a pipe into the unit, where it is heated, typically by a gas burner or an electric element. The heated water then flows out of the unit and to the desired fixture or appliance.

One major advantage of tankless water heaters is their energy efficiency. Since they only heat water as needed, there is no standby heat loss, resulting in potential energy savings over storage water heaters. Additionally, tankless heaters have a longer lifespan than storage heaters, often lasting 20 years or more with proper maintenance. 

"While they don't have a tank for storing water, they still need to be flushed from time to time to remove scaling and prevent breakdowns," Russum said.

Tankless water heaters have higher upfront costs than storage heaters and may require upgrades to gas lines or electrical systems during installation. They also have limited flow rates, which means the temperature of the water may fluctuate if multiple hot water sources are used simultaneously in a larger household.

Adjusting your water heater's temperature can save you money without sacrificing comfort.

Taylor Martin/CNET

Heat pump water heater

A heat pump water heater is an increasingly popular alternative to traditional water heaters that moves heat from the surrounding air to the water being heated. It uses a compressor and refrigerant system to transfer heat from the air to the water in the tank where the heated water is stored for later use. It's the same principle that heat pumps use to heat or cool the air in your home.

One of the main advantages of heat pump water heaters is their high energy efficiency. By extracting heat from the air or ground rather than generating heat directly, these water heaters can produce hot water using significantly less energy than conventional options, resulting in lower utility bills.

Heat pump water heater adoption will likely rise over the next several years, as this type of water heater is the best fit to match new energy efficiency regulations enacted by the US Department of Energy.

"Heat pump water heaters are more costly to buy and install than other models," Russum said. "Their higher upfront cost pays off through lower electricity bills, though." Heat pump water heaters can also act as a dehumidifier and provide air conditioning in warmer climates. 

Heat pump water heaters may not be suitable for all climates or installation locations. Because they require adequate space and ventilation to operate efficiently, they may struggle in colder climates or poorly ventilated areas. The compressor and fan can also be noisy during operation. 

"Homeowners with a heat pump water need to remember about such maintenance tasks as cleaning the air filter regularly, checking the area around the unit to ensure adequate airflow and periodically checking the condensate drain to ensure it is not blocked," Russum said.

Solar water heater

A solar water heater is similar to a storage water heater, except it uses solar energy to heat water instead of gas or electricity. A typical solar water heater will have solar collectors that absorb sunlight and convert it into heat and a storage tank to hold the heated water. There are two main types of solar water heaters: active systems, which use pumps to circulate water through the collectors and into the storage tank; and passive systems, which rely on natural convection to circulate water.

Solar water heaters are environmentally friendly and don't require burning fossil fuels to generate heat, though they can have a backup heating system that relies on electricity or gas. While solar water heaters are typically considerably more expensive up front, "operational costs of solar water heaters are lower compared to storage and tankless water heaters," Russum said. Expect lower energy bills and a smaller carbon footprint from a solar water heater. The cost model mirrors that of residential solar panel systems -- these are a true investment that will save you more money, but it's going to take some time.

While solar water heaters tend to operate efficiently, performance may vary depending on location, climate and available sunlight. Maintenance and repair costs may also be a consideration. "If you have a solar water heater, remember to clean collector panels and remove sediment buildup in a tank," Russum said. 

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Water heating fuel types

There are two primary fuel types for water heating: electricity and natural gas, which is made primarily from the fossil fuel methane. Electric water heaters are generally easier to install, have lower upfront costs and don't require venting, which makes them versatile and functional for most homes. Depending on how the electricity they run on is made, they can be cleaner options than gas heaters. However, they tend to cost more to operate and have slower recovery rates than gas heaters. Gas water heaters, while more expensive and in need of ventilation, are often faster at heating water and can be more cost-effective in areas with affordable natural gas. 

Solar water heating uses solar energy to heat water, reducing energy costs and carbon emissions. Though upfront costs are higher, solar heaters have minimal operating expenses. You may find other fuels for water heating like propane, oil and biomass, but these are typically less available than gas or electricity.

Water heater capacity

Perhaps the most important factor when it comes to picking a water heater is water capacity. "The first thing to take into account when choosing a water heater for your home is your needs," Russum said. "Regardless of the type, by choosing a water heater of the right size, you ensure smooth, energy-efficient operation." 

If the tank capacity is too small for your hot water demands, you may find yourself running out of hot water. Conversely, too large of a tank will have you heating more water than you need, leading to higher operating costs. As a general rule, you should consider 10 to 15 gallons per person in your home.

"Small households will benefit from tankless water heaters, larger families will benefit from storage, solar, or heat pump water heaters," Russum said. For tank-based heaters, he recommends paying attention to the first hour rating, which is an estimate of how many gallons of hot water the heater can supply within an hour. For tankless heaters, look at gallons-per-minute ratings, a measure of "how many gallons of hot water the heater can deliver in a minute," he said.

Water heater maintenance

Regular maintenance -- like flushing the tank and checking for corrosion and leaks -- is key both to energy efficiency and to extending the life of your appliance. "Both traditional storage water heaters and solar water heaters require regular descaling," Russum said. "The harder the water in your region, the more often you need to drain and flush a tank to prevent damage from scaling. A general recommendation is once every year."

These are tasks that you can typically do on your own. But if there are more serious issues that need to be addressed, you may want to tap a professional. If you need to replace anode rods or relief valves, for example, you're best to call in a technician to ensure it is done right. If you see signs of leaks or corrosion, you may also want a second opinion from an expert before taking action.

Water heater cost

Costs vary with water heaters depending on the type you choose, but the upfront cost is almost always going to be the largest one that you incur. Storage water heaters are typically cheapest, costing as little as $350, according to HomeAdvisor. Solar, by contrast, can cost up to $5,500 for a standard size home.

Over time, storage heaters tend to be more expensive because the reservoir can experience more maintenance cost, from sediment buildup and corrosion to tank leaks. Tankless heaters will typically have lower maintenance costs. "Homeowners choosing a storage or a tankless water heater should also keep in mind that electric water heaters tend to have higher operational costs than water heaters that use gas," Russum said. Solar heaters have the lowest operating costs over time, but can require more upkeep.

Additional important water heaters features

When choosing a water heater, there are a few more features to consider beyond the basic functionality of heating water. Smart features, such as Wi-Fi connectivity and mobile app integration, allows you to monitor and adjust settings remotely, track energy usage and receive alerts for maintenance issues or potential leaks. 

If energy efficiency is a top concern for you, look for things like Energy Star certification, which identifies models that meet or exceed industry standards for efficiency and performance. Ultimately, selecting a water heater will come down to the needs of your household, as well as your preferences and budget.

The Ultimate Water Heater Guide

Imagine turning on your faucet and waiting for hot water that never comes. Cold showers in the middle of winter, chilly water that won't clean dishes or clothes'this is how daily life would be without hot water heaters.

 

We usually don't think about our hot water system until it breaks and we're left with cold water and/or puddles in the basement. It's then that we remember that water heating is a necessity. If you're here precisely because you need a new water heater, we'll tell you all you need to know in this water heater buying guide.

 

Types of Water Heaters

If you've only ever had one type of water heater, you may be surprised to learn that you have different options.

 

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Storage Tank Water Heaters

Storage tank water heaters are the oldest and most common type. They store hot water in a large, 40-80-gallon tank. Cold water enters from the top and flows through a tube to the bottom.

• In natural gas- or propane-powered units, a burner heats the water at the bottom of the tank. The hot water then exits through a pipe on top of the tank.
• In electric-powered units, heating elements transfer heat to the stored water via conduction, like in a coffee maker.

 

Tankless Water Heaters

Tankless water heaters heat flowing water on-demand. As a result, they do not store water and are much more compact and energy-efficient. They come in natural gas, propane, and electric varieties. Below, you can see the internal components that go inside a condensing gas tankless water heater. 

 

 

When you turn on a water faucet in your home, a flow sensor in the tankless unit detects water flow. A circuit board then activates a heat exchanger inside the unit, which heats cold water flowing past it.

 

Unlike storage tank units, tankless water heaters bring water in and move it out from the bottom of the tank, although certain models on the market offer top-mount connections to simplify switching from tank to tankless. Some tankless water heaters even double as boilers and are called combination units.

 

Indirect Water Heaters

Indirect-fired water heaters are so-called because they do not directly heat the water. Instead, they are connected to a boiler that circulates hot water into a coil inside the indirect water heater.

 

Cold water enters the indirect water heater tank and is heated by the hot water circulating through the inside coil. The hot water is then sent to your fixtures.

 

Heat Pump Water Heaters

Heat pump water heaters are among the most efficient on the market. They work like air conditioners, pulling heat from the surrounding space. Instead of dissipating the heat outside, though, heat pump water heaters use it to heat the stored water. In addition to heating the water, these units also help cool the room.

 

Naturally, heat pump water heaters work best in warm climates because there is plentiful warm air to pull. Many models can switch to electric mode in case there isn't enough warm air in the room.

 

Point-of-Use Water Heaters

Point-of-use water heaters heat water at or near the fixture, typically mounted under a sink or next to a shower. As a result, they can provide hot water very quickly when compared to whole-house options.

 

They come in gas, electric, tank, and tankless models. Think of them as mini tank or tankless water heaters. They are most commonly installed in commercial or large residential applications that are difficult for a single, central water heater to handle.

 

What to Look for in a Hot Water Heater?

There are three main factors to consider when shopping for a water heater: application, efficiency, and size.

 

Application

First, you need to answer the question, 'where is this water heater going?' For example, do you have the physical space to have a large storage tank? Is your climate warm enough to efficiently sustain a heat pump water heater?

 

For some water heaters, you need other components. For example, you cannot use an indirect water heater unless you already have a boiler system in your house. Tankless gas hot water heaters may require you to upsize your gas line because they need more energy to heat water.

 

If you own a large home or building, do you want to go with a single, centralized water heater or install multiple point-of-use water heaters? These are all questions to think about when choosing what kind of water heater will work best for you.

 

Efficiency

Water heater efficiency is noted by its Uniform Energy Factor (UEF) rating, which measures what percentage of the unit's energy goes into heating the water versus being exhausted out the flue.

 

For example, a 0.95 UEF water heater is highly efficient'95% of its energy goes into heating the water.  A 0.80 UEF water heater would be considered lower efficiency since only 80% of its energy heats the water.

 

High-efficiency water heaters use condensing technology, which consists of a secondary heat exchanger that captures heat from the exhaust before it exits the flue. Not only does this recover precious heat, but it makes the exhaust gases cooler, allowing you to use less expensive PVC and DuraVent venting, rather than expensive stainless steel.

 

The benefits of high-efficiency units include energy bill savings and venting materials, although you will pay more upfront. Both storage tank and tankless types have high efficiency and lower efficiency models. Indirect water heaters are naturally highly efficient since they use the heat already being produced by your boiler. Similarly, heat pump water heaters are extremely efficient as they use the existing heat in the room.

 

Size

If your water heater is too small for your home, you'll be dealing with a lot of cold showers because you won't have enough hot water. That's why sizing matters.

 

Sizing a tankless water heater will depend on what type you want. For tankless water heaters, you need to figure out the following:

1. Flow rate, or how quickly water is flowing in your home across all the fixtures you would be using at the same time. This tells you how much water you would need to heat.
2. Temperature rise, or the difference in temperature between incoming cold water and outgoing hot water. Suppose you want to heat your water to 120° F. It takes more energy to accomplish this if the incoming cold water is 50° F versus 70° F. The temperature of your incoming groundwater depends on your climate.

 

Storage tank water heaters, which include heat pump and indirect types, use first-hour rating for sizing. The first-hour rating is how many gallons of hot water your home would need in one hour at maximum demand. For example, if your family uses up to 40 gallons of hot water in an hour, your water heater had better be holding that much. Otherwise, you need a larger one.

How Long Does a Gas Water Heater Last?

Water heaters with a storage tank typically last between 10 and 15 years. The better you maintain them with regular maintenance and tank flushing, the longer they will last.

Tankless water heaters can last 20 years or more due to fewer opportunities for corrosion and their easily replaceable, modular components. With tankless, you can replace individual parts instead of the whole unit. 

 

Water Heater Cost

After reading this hot water heater guide, you're probably wondering, 'what about price?' There are many variables that impact the cost, such as the water heater itself (which changes in price based on efficiency and type; gas, electric, etc) and installation.

 

We recommend you consider long-term costs as opposed to short term gains. Sure, going for the less expensive 0.80 UEF water heater might sound great now, but you'll end up paying more in energy costs over its lifetime than with a higher-efficiency unit.

 

We don't realize how important hot water is until we lose it. Don't wait until you start having trouble to start looking for a better unit. We'd love to discuss costs and specific options for your home with you, so please contact us at (866) 631-. 

 

 

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