Key Questions to Ask When Ordering water heater
Jul. 07, 2025
How To Choose a Water Heater: 12 Factors to Consider For Your ...
Before buying a hot water heater, there are several important factors to consider to ensure you choose the right unit for your home:
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- Type of Water Heater
- Fuel Type
- Capacity
- Energy Efficiency
- Cost
- Space and Location
- Lifespan
- Warranty
- Maintenance
- Local Codes and Permits
- Recovery Rate (for Tank Water Heaters)
- Smart Features
Type of Water Heater
- Tank Water Heater: Stores hot water in a large tank, available in gas or electric models. These are typically more affordable upfront but less energy-efficient than tankless models.
- Tankless Water Heater: Heats water on demand, so you never run out. They are more energy-efficient and take up less space, but they come with a higher initial cost.
- Heat Pump Water Heater: Uses heat from the air or ground to heat the water, making them very energy-efficient, but they are also more expensive upfront.
- Solar Water Heater: Uses energy from the sun to heat water, ideal for eco-friendly homes but can be expensive and may need a backup system in less sunny regions.
Fuel Type
- Electric: Easier to install and generally less expensive upfront but may have higher operational costs depending on electricity rates.
- Gas: Often more energy-efficient and cheaper to operate than electric, but they require a gas line and proper venting.
- Propane: Similar to gas heaters, but you’ll need access to a propane supply.
- Solar or Hybrid: Highly energy-efficient but come with higher upfront costs.
Capacity
- Tank Water Heaters: Choose a tank size based on your household size and hot water usage. For example, a 40-50 gallon tank is typically enough for a family of 4.
- Tankless Water Heaters: These are sized based on flow rate (gallons per minute, GPM) and temperature rise. Ensure the unit can handle the simultaneous demand of your household (e.g., running a shower and dishwasher at the same time).
Energy Efficiency
- Look for the Energy Factor (EF) or Uniform Energy Factor (UEF) ratings, which indicate how efficiently the water heater converts energy into hot water. Higher numbers mean greater efficiency.
- Energy Star-rated models are a good choice for reducing energy consumption and lowering utility bills.
Cost
- Consider both the initial cost of the unit and the long-term operating costs. While tankless and energy-efficient models are more expensive upfront, they can save money in the long run through reduced energy use.
- Don’t forget to factor in installation costs, which can vary depending on the complexity of the installation and whether you’re switching between fuel types.
Space and Location
- Ensure the water heater will fit in the intended space. Tankless water heaters are compact and can be installed in small spaces, whereas tank heaters require more room.
- Consider ventilation requirements if choosing a gas-powered unit.
Lifespan
- Tank water heaters typically last 8-12 years
- Tankless models can last up to 20 years. A longer lifespan may justify a higher initial cost.
Warranty
- Check the manufacturer’s warranty for both the unit and its parts. Longer warranties typically indicate a more durable and reliable product.
Maintenance
- Some types of water heaters, like tank models, need regular maintenance, such as flushing the tank to remove sediment. Tankless heaters also need periodic descaling if you have hard water.
Local Codes and Permits
- Make sure your new water heater complies with local building codes. You may also need permits for installation, especially for gas and solar water heaters.
Recovery Rate (for Tank Water Heaters)
- The recovery rate for tank water heaters measures how quickly the heater can reheat water after it has been depleted. A higher recovery rate is better for larger families who use a lot of hot water.
Smart Features
- Some modern water heaters come with smart controls that allow you to monitor and control the water heater via a smartphone app, helping you adjust temperatures and maximize energy savings.
By considering these factors, you can select the best hot water heater that fits your household’s needs, budget, and energy goals.
Selecting a New Water Heater | Department of Energy
It's a good idea to know the different types of water heaters available before you purchase one:
- Conventional storage water heaters offer a ready reservoir (storage tank) of hot water which is adequate for everyday use. However, there are some instances, such as when more than one use for hot water is occurring or when there are guests in the home, increasing the requirements for hot water.
- Tankless or demand-type water heaters heat water directly without the use of a storage tank. This type of water heater is designed to provide an adequate supply of hot water without running out when adequately sized.
- Heat pump water heaters move heat from one place to another instead of generating heat directly for providing hot water, resulting in high efficiencies and significant cost savings.
- Solar water heaters use the sun's heat to provide hot water and also save money on energy bills.
- Tankless coil and indirect water heaters use a home's space heating system to heat water.
Selection Criteria
When selecting a replacement water heater for your home, consider the following:
- Fuel type, availability and cost. The fuel type or energy source you use for water heating will not only affect the water heater's annual operation costs but also its size and energy efficiency. See below for more on selecting fuel types.
- Size. To provide your household with adequate hot water and maximize efficiency, you need a properly sized water heater. Visit the pages on different types of water heaters (linked above) for more on sizing.
- Energy efficiency. To maximize energy and cost savings, check the energy efficiency of a water heater before you purchase it. Visit the pages on different types of water heaters (linked above) for more on estimating energy efficiency.
- Costs. Before you purchase a water heater, it's also a good idea to estimate the annual operating costs and compare those costs with other less or more energy-efficient models. Visit the pages on different types of water heaters (linked above) for more on estimating costs.
Also be sure to examine ways to reduce your hot water use, such as washing clothes in cold water. You may also want to explore other options such as drain-water heat recovery to save money on your water heating bill.
Fuel Types, Availability and Costs for Water Heating
When selecting a new water heater, it's important to consider what fuel type or energy source you will use, including 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.
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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 in the United States for 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. See Heat Pump Water Heaters for more information. - Natural gas
Available in many areas of the United States to fuel conventional storage and demand (tankless or instantaneous) water heaters, as well as combination water and space heating systems, which include tankless coil and indirect water heaters. - Propane
Available in many areas of the United States 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 fuel 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 different fuel or energy source.
However, if you are converting from one fuel type to another, there are other cost considerations, such as adding a breaker or running a gas line to the water heater and venting it outside. 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 than a gas-fired conventional storage water heater, even though local natural gas costs might be lower than the electricity rates.
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