What Hot Water Heater is Best for You?

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Solar water systems aren’t perfect. Unless you live in the middle of the Sunbelt, you will still need a fuel-fired backup system (most building codes require it). In addition to working with Mother Nature, you may also need to deal with zoning laws and covenants, which may restrict where you can place collectors.

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Hot water on demand

Tankless, or on-demand, water heaters go to work only when someone turns on the hot water tap. Because they don’t heat water needlessly, tankless systems use 20 percent less energy than conventional tank-style water heaters. In a one- or two-person home, standby heat loss from conventional heaters can be even greater, because the stored hot water sits around longer.

Tankless heaters aren’t a good solution for every household. Most units provide only two to three gallons per minute (gpm), just enough to run one high- efficiency showerhead. Larger units, such as the AquaStar 125 ($600) and the Takagi TK-1 ($1,100) can provide up to 5 gpm. Although both of these units can easily support a low-flow showerhead, the pressure and/or temperature may drop if you try to do a load of laundry in hot water at the same time. The volume of heated water will also decrease if the temperature of the incoming water drops. One way to avoid these disadvantages is to pair a tankless heater with a solar heater. In this case, make sure your tankless heater is designed to modulate down to a zero-setting for those times when it only has to add a few extra degrees to the preheated water.

In addition to taking a few water-conservation steps, many of the drawbacks of a tankless heater can be resolved if you install additional tankless heaters to serve different zones. Also, because tankless systems require a minimum flow to start heating the water, you may want to consider a small point-of-use electric water heater for washing hands or other minimal tasks.

Storage tank heaters

If you choose to stick with conventional tank-style water heaters, there are ways that you can reduce energy consumption. According to Michael Lamb, an energy consultant with the Energy Efficiency and Renewable Energy Clearinghouse (EREC), in Merrifield, Virginia, “Tank size is important, but consumers should pay more attention to the first-hour rating (FHR) that’s listed on the heater’s Energy Guide Label.” The FHR is a measure of how much water the heater can deliver to meet peak demand. For example, a thirty-gallon high-efficiency gas heater has a FHR of 67 gpm; in comparison, a fifty-gallon electric heater has a FHR of just 58 gpm. In this case the smaller water heater can supply more hot water, with lower standby losses than the larger unit.

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