When selecting a new water heater for your home, choose a water heating system that will not only provide enough hot water, but also that will do so efficiently, saving you money. This includes considering the different types of water heaters available and determining the right size and fuel source for your home.
Types of Water Heaters
Here are five types of water heaters on the market:
- Traditional storage water heaters offer a ready storage tank of hot water
- Tankless or on-demand water heaters heat water directly without the use of a storage tank
- Heat pump water heaters move heat from one place to another instead of generating heat directly for providing hot water
- Solar water heaters use the sun’s heat to provide hot water
- Tankless coil and indirect water heaters use a home’s space heating system to heat water
Selection Criteria
When selecting the best type and model of water heater for your home, consider the following:
- Fuel type, availability, and cost.
- To provide your household with enough hot water and to maximize efficiency, you need a properly sized water heater.
- Energy efficiency.
- Before you purchase a water heater, it’s also a good idea to estimate its annual operating costs and compare those costs with other less or more energy-efficient models.
Also be sure to do what you can to reduce your hot water use.
Fuel Types, Availability and Costs for Water Heating
When selecting a new water heater, it’s important to consider what energy source you will use. This includes its availability and cost. The fuel used by a water heating system will not only affect annual operation costs, but also the water heater’s size and energy efficiency.
Exploring Water Heater Options by Fuel Type
Fuel type and its availability in your area may narrow your water heater choices. The following is a list of water heater options by fuel or energy source:
Electricity
Widely available to fuel conventional storage, tankless or demand-type, and heat pump water heaters. It also can be used with combination water and space heating systems, which include tankless coil and indirect water heaters.
Fuel oil
Available in some areas of the United States to fuel conventional storage water heaters, and indirect combination water and space heating systems.
Geothermal energy
Available throughout the United States to those who will have or already have a geothermal heat pump system installed in their homes for space heating and cooling.
Natural gas
Available in many areas to fuel conventional storage and demand water heaters, as well as combination water and space heating systems, which include tankless coil and indirect water heaters.
Propane
Available in many areas to fuel conventional storage and demand (tankless or instantaneous) water heaters, as well as indirect combination water and space heating systems.
Solar energy
Available throughout the United States — most abundantly in the Southwest — for solar water heaters.
Comparing Fuel Costs and Water Heater Types
If you have more than one fuel type available in your area, it’s a good idea to compare costs, especially if you’re building a new home. Even if you’re replacing a water heater, you may find that you’ll save more money in the long run if you use a energy source. Contact your utility for current fuel costs or rates.
The type of water heater you choose will also affect your water heating costs. One type of water heater may use a fuel type more efficiently than another type of water heater. For example, an electric heat pump water heater typically is more energy efficient than an electric conventional storage water heater. Also, an electric heat pump water heater might have lower energy costs because of its higher efficiency than a gas-fired conventional storage water heater, even though local natural gas costs might be lower than the electricity rates.
