A Homeowner's Guide to Water Heaters
Your water heater is a major energy consumer. Choosing the right type can lead to significant savings on your utility bills and improve your home's comfort.
Conventional Storage Tank Water Heater
This is the most common type. It consists of an insulated tank that holds and heats a ready reservoir of water. They are the least expensive to purchase and install.
Pros:
- Lower initial cost.
- Simple technology, easy to install and replace.
Cons:
- "Standby heat loss"—energy is constantly used to keep the water in the tank hot.
- Limited supply; can run out of hot water during high usage.
- Takes up significant floor space.
Tankless (On-Demand) Water Heater
Tankless heaters heat water instantly as it flows through the unit. They do not store hot water, eliminating standby heat loss.
Pros:
- Highly energy-efficient (no standby loss).
- Endless supply of hot water.
- Compact, space-saving design.
- Longer lifespan than tank heaters.
Cons:
- Higher upfront cost for the unit and installation.
- May require electrical or gas line upgrades.
- Flow rate can be limited, especially with multiple simultaneous uses.
Heat Pump (Hybrid) Water Heater
These units don't generate heat directly. Instead, they capture heat from the surrounding air and transfer it to the water in the tank—like a refrigerator in reverse. They are the most energy-efficient option available.
Pros:
- Extremely energy-efficient, offering the lowest annual operating costs.
- Eligible for significant tax credits and rebates.
Cons:
- Highest initial purchase price.
- Requires more space and clearance than other types.
- Cools the surrounding space, making it ideal for a garage or basement but not a finished living area.