Which is best for water heating?

04 Apr.,2024

 

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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.

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.

Tank water heaters typically hold 40, 50, or 55 gallons or more. The size you buy depends on the number of people living in your home and your peak water usage. A family of four, for instance, might take several showers, run the dishwasher, and wash a load or two of laundry in an average day, totaling 100 gallons of hot water or more. But that doesn’t mean that household needs a 100-gallon storage tank.

For storage tank water heaters, it’s important to consider the first-hour rating, which is the number of gallons a water heater can deliver in an hour starting with a full tank. You’ll find the FHR on the EnergyGuide label. To calculate what FHR will work for your home, use the calculator on the Energy Saver website.

As the result of recently updated efficiency standards, water heaters less than 55 gallons now have a 4 percent boost in efficiency and water heaters 55 gallons or more have efficiency gains of 25 to 50 percent, depending on the technology used—heat pump or condensing. (See water heater types, below.)

And don’t assume that a new water heater will fit where your old one was. Because of increased insulation and other efficiency improvements, some newer models may be wider and/or taller than your old water heater.

Tankless water heaters, of course, don’t hold much water, so the number to look for is the gallons-per-minute rating (GPM). That’s the number that tells you how much hot water the heater can deliver over a set period of time. The higher the GPM, the more hot water the unit can deliver. If you have a big family and multiple bathrooms, you’ll need a tankless water heater with a higher GPM. A typical shower, for example, uses up to 2.5 GPM. Newer washers use from 7 gallons (front-loader) to 19 gallons (agitator top-loader) per wash, but older models can use up to 32 gallons per load, as indicated below. Calculate your needs accordingly.

For more, you can check our water heater ratings.

Which is best for water heating?

Best Water Heater Buying Guide

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