When it comes time to replace the water heater, homeowners have an opportunity to save money and significantly lower their carbon footprint by choosing
more efficient appliances. In the U.S., most homes are equipped with water
heaters that require a large storage tank. The water has to be heated continually, leading to $400 to $600 water heating bills every year.
A tankless model requires less space, lasts longer and costs less to operate.
Because it does not hold water, cold water flows into the unit and is heated only
when needed. This can save energy because the unit does not need to heat
gallons of water that aren’t being used.
One drawback is that tankless devices may require a gas line and may be
a challenge for older homes because of the necessary permits and electrical
upgrades. Whether it has a tank or not, choose an Energy Star-certified model,
which is deemed to be more efficient and often comes with a rebate or tax
credit. Visit EnergyStar.gov for more information.
Some people may opt for a solar water heating system, which can cut annual
hot water costs in half. Homes that generate their own power with solar panels
may eliminate the annual cost altogether.
Another option is a heat pump water heater that uses 70 percent less energy than standard water heaters and is currently eligible for a $300 federal
tax credit. According to Energy Saver, a U.S. Department of Energy consumer
resource (Energy.gov), heat pump water heaters use electricity to move heat
from one place to another instead of generating heat directly.
After installing a new unit, be sure to recycle the old water heater. Ask the
retailer of the new appliance if they participate in a take-back program, or coordinate with the installer to arrange for proper recycling.
If the water heater doesn’t need replacement yet, consider that for every
10-degree decrease in the temperature setting on a conventional tank there
is a corresponding 3 to 5 percent energy savings. Lower temperatures also
reduce mineral buildup and corrosion in the tank and pipes.
Keep in mind that the easiest way to lower a household’s water heating is
simply to use less hot water. Look for ways to decrease the family’s use of hot
water by taking baths or shorter showers, washing laundry with cold water and
running the dishwater on the energy-efficient setting.