Choosing a new water heater can be complex today because of all the available options but deciding which one is best for your home is going to be based on just a few simple factors.
If you have a traditional hot water heater now then you probably have a gas or electric hot water heater with a 40 to 80 gallon water tank. The water that is stored in your tank is kept at a temperature that you set on your water heater’s thermostat and the size of the tank will determine how many gallons of water you get before the hot water heater has to regenerate. This amount of water is normally referred to as the First Hour Volume and you will see it listed in its sales documentation. The first hour rating of any tanked water heater will be more than its actual capacity. For instance if you have an 50 gallon hot water heater the first hour rating might be 80 gallons of water at the temperature you set the thermostat to. After that then the hot water heater will have to run without water cycling through it to bring more water up to temperature. Traditional, Solar and Heat Pump Hot Water Heaters all have a first hour rating and they all store hot water in a tank.
Tankless Water Heaters heat the water on demand so the first hour rating does not apply. If the needs for hot water in your home or business are very high then a Tankless system might be able to provide you unlimited amounts of hot water. Instead of rating based on the total volume of water available such as 80 gallons in the first hour a Tankless Hot Water Heater will be rated on the flow of water it can heat such as 2 gallons or 6 gallons per minute and this will limit how many people or fixtures can use the hot water at the same time. This means you might not be able to fill the tub for the kids, do a load of wash, wash the dishes and get a shower at the same time.
As you can see there are limits to any type of hot water heating system. Whether it is tankless or has a tank the heater has to be rated to meet the needs of your home or business. Once you exceed the ability of the heater then you need to lower your use.
Water Heater Cost of Purchase, Install And Cost Of Use
The least expensive hot water heater to purchase and install will be an electric tanked style heater. There are fewer things used to manufacture this type of heater so its cost per volume is less. It is also very easy to install and most home owners can replace their own electric hot water heater in addition to maintaining and repairing them themselves. It is a very simple system for the most part but the drawback is cost of operation. The cost of operating an electric water heater is always going to be higher than gas, heat pump or solar versions of similar size. However that cost might not be that much greater if the hot water heater is being used in a climate where ground water temperatures are warmer and the hot water heater is in a conditioned living space vs outdoors or in a garage.
Tanked Gas Hot Water Heaters have a lower cost of operation than their similar sized electric models but they have a higher cost which can sometimes be double the price. They also should be installed by a professional although a home owner can install them by themselves the setup for safety is best left to a professional.If you are considering replacing an electric hot water heater with a gas version the requirement for professional instillation is greater. The technician will need to add a gas line and an exhaust vent and in many cases the hot water heater will need to be moved to a location that is better for burning gas fuel. You won’t be able to keep your hot water heater under the stairs anymore or in a tight crawl space.
Solar and Heat Pump Hot Water Heating Systems normally always require a contractor for their initial install. The technician will need to run lines to the solar panel and install the solar panel on your roof. For heat pump hot water heaters there is a bit more complexity and your contractor will need to install a few extra things like a condensation line. The main thing though is if you want rebates offered by Government or Electric Companies it will normally require that you use a professional to install the system. Once the units are in place a heat pump hot water heater should save you about 50% on your monthly electric bill and a solar hot water heater should be free to use unless the electric heating elements need to kick on to provide hot water when the solar panel can’t. Costs of these systems are expensive and you do need to do some calculations as to whether you will benefit and how much savings in electricity is necessary to break even. When compared with standard electric hot water heaters that cost hundreds of dollars the solar and heat pump systems can cost many thousands. Heat Pump Water Heaters are also larger than conventional tank systems because they house the heat pump on the top of the water heater. Expect to add an additional 18 inches to the top of your tank so if headroom is a concern then it might not be an option. Solar Hot Water Heaters normally have much larger volume hot water tanks. This is because it can take longer to heat the water and you want more storage overnight. Electric Heating Elements can take up the slack and allow for a smaller tank but then you are just running an electric hot water heater instead of solar.
Tankless On Demand Hot Water Heaters are another option that many people consider but you really need to understand the full costs before you go near these systems. Where they are best used is when gas and venting is already available and you have limitations on the space you have. Electric Tankless Hot Water Heaters should really be thought of as an option of last resort because of the high demand of electricity that they use. You can expect to have three 40 amp heating elements in an average home sized electric tankless system which means your electric service will need to be upgraded and there is the cost of wiring the unit. Your home might be a candidate for an Electric Tankless Hot Water Heater but you really need to do your research on the total cost before buying. Another thing about tankless hot water heaters is that they do not provide unlimited amounts of hot water. They are rated at a specific volume of water that can run through the heater slow enough to be heated to the correct temperature. This means normally you can’t run a bath for the kids, do the dishes, do the wash, and have someone getting a shower at the same time. The demand will be too high and the water temperature will drop.
Final Note
In this How To we have looked at some of the deciding factors for buying a hot water heater. In the case of conventional electric hot water heaters they have the lowest initial cost but they do cost more to operate. You can also install, replace and service these units yourself without much problem. For this reason they are a very acceptable choice for most home owners. If you wanted to save money on your electric bill then you could either go with a gas hot water heater if that is what you have now but they are not great choices if you don’t already have gas and vent lines to the tanks location. Another option to save on your electric bill is a Heat Pump Water Heater but their initial cost can easily be three times the cost of a conventional electric hot water heater or more. You must consider how long it will take for you to save $1,000-3,000 on your electric. These three options make up the easiest and lowest cost hot water heaters but if you want to go with a Solar Hot Water Heater you should have a long conversation with a technician about what you can expect from using one in your specific location. Some areas are better suited than others for the use of solar but if you do decide to get one make sure you look for rebates or tax incentives.