Choosing a Water Heater
Types of Water Heaters
Storage/electric-resistance
water heaters
The most commonly used model, the storage/electric-resistance water
heater, works by heating water and storing it in an insulated tank.
Its inexpensive and easy to install, and it converts power
at 100 percent efficiency.
Tankless
water heaters
Tankless water heaters are also known as demand water heaters or instantaneous water heaters. The tankless water heater doesn’t have a storage tank, essentially eliminating storage tank heat losses. Hot water storage tank heat losses are analogous to the heat lost from a hot cup of coffee getting colder, as it sits losing heat. Tankless water heaters can be gas or electric. They are classified as either a “whole house” or “point of use” water heater. Whole house tankless water heaters actually replace the existing conventional storage water heater while the point of use water heater is remotely installed in close proximity to the actual hot water use, such as under a kitchen sink. They are more expensive to purchase and install than a conventional storage water heater, but may cost less to operate since they don't maintain a tank full of hot water when not in use.
Solar
water heaters
A solar water heater typically includes collectors mounted on the
roof or in a clear area of the yard, a separate storage tank near
the conventional heater in the home, connecting pipe, and a controller.
Throughout the year, the solar system preheats the water before
it reaches the conventional water heater. During the summer, it
may provide all the heat thats required. Such a system can
reduce your annual hot-water costs by more than half.
Desuperheaters
A desuperheater is an attachment to your air conditioner or heat
pump that allows waste heat from that device to help heat your water.
In hot climates, a desuperheater can provide most of a homes
hot-water needs during the summer.
Tips on buying a new water heater
- Although many consumers buy water heaters based only on the size of the storage tank, the first-hour rating (FHR), provided on the Energy Guide label, is actually more important. The FHR is a measure of how much hot water the heater will deliver during a busy hour. A larger tank doesnt necessarily mean a higher FHR. When you buy a water heater, estimate your households peak-hour demand and look for a unit with an FHR in that range.
- If you live in a moderate climate (i.e., with relatively low heating loads), consider a more efficient heat-pump water heater (HPWH). Although an HPWH may have a high initial cost, it can save up to 50 percent of your water heating bill.
- For energy efficiency as well as safety, when buying gas- or oil-fired water heaters look for units with sealed combustion or power venting to avoid back-drafting of combustion gases into the home.
- Everything else being equal, select a water heater with the highest energy factor (EF), the measure of a water heaters efficiency. EF is based on recovery efficiency, standby losses, and cycling losses. The higher the EF, the more efficient the water heater. Electric-resistance water heaters have an EF ranging from 0.86 to 0.95; gas water heaters from 0.5 to 0.6, with a few high-efficiency models at around 0.8; oil water heaters from 0.7 to 0.85; and heat-pump water heaters from 1.5 to 2.0.
- Whenever possible, try to install your water heater in a conditioned area. Also try to minimize the length of the pipes that must be run to your bathroom and kitchen.
- Warranties on water heaters vary, so compare the warranties and make sure you are getting the best water heater for your money.

