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What Are the Most Energy-Efficient Water Heaters?

Most Energy-Efficient Water Heaters

Is your hot water heater on the blink? Do you notice that the hot water for your household runs out during peak usage times? If so, a new water heater may better serve your needs. As you plan a replacement, consider installing an energy-efficient model to save energy and lower your utility costs.

Heating water accounts for approximately 18% of an average U.S. family’s energy consumption. With today’s attention on energy efficiency, hot water heater manufacturers have developed eco-friendly products that use less energy, take up less space and can serve a large household. Choices include traditional storage, heat pump, on-demand, and solar water heaters.

Storage Water Heaters

Traditional storage water heaters heat and store hot water in an insulated tank. Fuels that power these appliances include electricity, gas, propane, and oil. Storage water heaters use energy to keep water hot throughout the day, which makes them less energy-efficient. They cost less than other types of water heaters and have an expected lifetime of 8 to 10 years.

Energy Star-certified gas storage models use approximately 10% less energy than standard gas water heaters. They are better insulated and have more efficient heat traps and combustion systems.

High-efficiency or condensing gas storage water heaters offer even more energy savings. They feature a second heat exchanger that extracts more heat during combustion and heats the water for a longer period, reducing the amount of energy used. Some models qualify for rebates or federal tax credits.

Heat Pump Water Heaters

Heat pump water heaters function as storage water heaters. However, instead of using energy to heat water, they absorb heat energy from the air and transfer it to the tank to heat water. Heat pump water heaters are approximately 65% more energy-efficient than standard electric models. They work well in Florida’s warm climate.

Although they cost more, their lower operating costs can save hundreds of dollars over the life of the appliance. According to the Department of Energy, the average service life of a heat pump water heater is approximately 10 to 15 years. Those carrying the Energy Star label qualify for a 30% federal tax credit of up to $2,000, which can significantly offset the upfront cost.

Geothermal Heat Pump Water Heaters

If you have a geothermal heating, ventilation and air conditioning system, a heat pump water heater can be integrated into the system using a desuperheater. Geothermal HVAC heat pumps potentially save up to 70% on heating, cooling, and hot water. The ground loop can last as long as 100 years. The interior component can last between 20 and 25 years, double the lifespan of conventional water heaters. In addition, they require little maintenance. Although installation costs are high, experts estimate a return on investment in 5 to 10 years. Florida’s warm climate enables them to produce abundant hot water throughout the year.

Tankless Water Heaters

Tankless water heaters, also called demand water heaters, do not have a storage tank. Instead, water is heated when you turn on the tap, delivering a consistent supply of hot water without having to wait for it to heat. According to the Department of Energy, they can be up to 34% more energy-efficient than conventional storage water heaters because they heat only the amount of water required in response to demand. There is no latent energy loss. Condensing tankless water heaters are even more energy-efficient.

Tankless water heaters run on a variety of energy sources, including electricity, natural gas, and propane. They are compact, making them suitable for use in small spaces.

The flow rate of tankless water heaters is less than storage models. They often cannot meet the hot water demands of multiple uses. Although they cost more to install, they last approximately 20 years, twice the service life of storage water heaters.

Solar Water Heaters

Solar water heaters use energy from the sun to heat water. Solar panels transfer heat to refrigerant that warms the water in the tank. If you have a solar installation, solar water heaters can be connected to the system.

Solar water heaters work well in areas that receive a lot of sunshine. On cloudy or cold days, they may not deliver enough hot water to serve a household. Thus, they include a backup water heating system to augment hot water production, which can increase the cost of operation and reduce energy efficiency. If you use a lot of hot water after sundown, backup power may kick in.

Solar hot water heater installation can be expensive. After the initial payback period, they can supply hot water for years at little or no cost. They last approximately 20 years and are relatively maintenance-free. According to Energy Star, solar water heaters can reduce water heating bills by 70% to 90%. Qualifying residential solar water heaters may be eligible for a 30% federal tax credit that covers equipment and installation, which reduces the initial costs.

The Most Energy-Efficient Water Heaters

Solar water heaters head the top of the list, saving up to 90% of energy costs compared to conventional electric storage water heaters. They are most effective in sunny, warm climates. Some solar installations qualify for 30% tax credits.

Heat pump water heaters rank second. They use a small amount of electricity to run the system and rely on the heat energy from the air or earth to produce heat. They are approximately three times more energy-efficient than conventional systems. Although they are more expensive to install than conventional storage water heaters, they last longer. Tax credits of up to $2,000 can offset the up-front costs.

Tankless water heaters are great for those who need an energy-efficient option for small spaces or want instant hot water. Electric models are less energy-efficient than gas-powered systems. Up-front costs are higher for demand water heaters, which usually cannot meet the hot water needs of large families. However, you will never run out of hot water. They last approximately twice as long as storage water heaters.

Storage water heaters are the least expensive to install but the most expensive to operate. High-efficiency models use less energy than traditional models. Savings depend on the placement of the water heater, your family size, and the location of pipes. They last 8 to 10 years. High-capacity models can provide enough hot water for large families.

The water heater you select depends on several variables, including the type of fuel available in your area, your budget, and how much hot water your household requires. The licensed plumbers at Benjamin Franklin Plumbing can help you select a model that meets your needs. Call today to schedule a consultation.