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Understanding Different Types of Water Heaters

Storage Tank Water Heater

Storage tanks are the most common type of water heater. As the name suggests, these consist of an insulated tank in which water is heated and stored until needed, then emerges from a pipe on top of the water heater.

There is also a temperature- and pressure-relief valve, which opens if either exceeds a preset level.

Natural-gas water heaters typically use less energy and cost less to run (by about half) than electric water heaters, although you should note that gas models cost more.

Electric Water Heater

Electric water heaters use electricity to heat water. They usually comprise a water tank and one or several electric resistance coils that sit directly in the tank. Once electricity passes through the coils, they heat up the water before it’s distributed throughout the house.  

Tankless (On-Demand) Water Heater

Rather than storing water, tankless water heaters use heating coils to heat the water as you need it. They’re more energy-efficient than a storage tank but provide only a limited flow of hot water per minute—about 3.5 gallons, depending on inlet water temperatures.

They’re best for people who typically aren’t drawing water for more than one use at a time—such as running a shower and dishwasher simultaneously.

Tankless models are best for homes that use natural gas to heat the water; electric models might require an expensive upgrade of the home’s electrical capacity.

Electric Water Heater Pros and Cons

Pros

  • Clean operation
  • Safe
  • Heats water efficiently
  • Lower purchase price
  • Wide range of sizes
  • Never needs relighting (no pilot light)
  • Easier hookup since all homes have electric service
  • longer lifespan
  • No flue vent pipes required

Cons

  • Higher operating costs
  • Slower to heat water than gas models
  • Longer recovery times
  • Will not operate during power failure

Gas Water Heater Pros and Cons

Pros

  • Heats water quickly
  • Faster recovery time
  • Lower operating costs than with electric models
  • Energy efficient
  • Operates during power failures

Cons

  • Not all homes have gas; might need to be added
  • Less safe than electric models
  • Dirtier operation
  • Smaller range of sizes
  • Shorter lifespan than electric
  • Less efficient heating of water than electric
  • Relighting sometimes required
  • Needs flue vent pipes

Tankless Water Heater Pros and Cons

Pros

  • Saves gas
  • Saves electricity
  • Unlimited hot water
  • Longer Life Expetancy
  • Saves Space
  • Reduced Water Damage Risk
  • Precise Temperature Control

Cons

  • More upfront cost
  • Higher installation cost
  • Flow rate limits or improper sizing
  • No hot water during power outage
  • Hard water may require filtration

Check for rebates. Whether your water heater installation is new or a replacement, you may be eligible for a rebate from your local utility company, which can offset some of the cost. To see whether your utility offers rebates, check its website or the federal Energy Star rebate finder

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