Water heating accounts for about 18% of your home's energy use, making it the second-largest energy expense after heating and cooling. Choosing the right water heater can significantly impact your monthly utility bills and environmental footprint.

Why Energy Efficiency Matters

• Water heating can cost $400-600+ annually
• Energy-efficient models can save 20-50% on energy costs
• Reduced environmental impact through lower energy consumption
• Potential rebates and tax incentives for efficient models
• Higher resale value for your home

Professional Services

Traditional Tank Water Heater

The most common type, stores 40-80 gallons of hot water in an insulated tank.

Cost Range:

$800 - $1,500

Efficiency:

60-70%

Lifespan:

8-15 years

Pros:

Lower upfront cost
Simple installation
Familiar technology

Cons:

•Higher energy costs
•Limited hot water supply
•Standby heat loss

Tankless Water Heater

Heats water on-demand without storing it, providing unlimited hot water.

Cost Range:

$1,500 - $3,500

Efficiency:

80-95%

Lifespan:

8-15 years

Pros:

Unlimited hot water
Energy efficient
Space saving
Long lifespan

Cons:

•Higher upfront cost
•Complex installation
•May need multiple units

Heat Pump Water Heater

Uses electricity to move heat from the air to heat water, very energy efficient.

Cost Range:

$1,200 - $2,500

Efficiency:

200-300%

Lifespan:

8-15 years

Pros:

Very energy efficient
Can cool surrounding area
Low operating costs

Cons:

•Requires warm climate
•Higher upfront cost
•Needs adequate space

Energy Savings Calculator

Here's a rough estimate of annual energy costs for a typical family of four:

Traditional Tank

$500-600

per year

Tankless

$300-400

per year

Heat Pump

$200-300

per year

Choosing the Right Water Heater

Consider Tankless If:

• You have high hot water demand
• Space is limited
• You want maximum energy efficiency
• You plan to stay in your home long-term
• You have natural gas available

Stick with Traditional If:

• Budget is your primary concern
• You have moderate hot water needs
• You plan to move soon
• You prefer simple, proven technology
• Installation space is not an issue

Additional Energy-Saving Tips

For Any Water Heater:

• Lower thermostat to 120°F
• Insulate hot water pipes
• Install low-flow fixtures
• Fix leaks promptly
• Drain sediment annually

Rebates & Incentives:

• Federal tax credits available
• Local utility rebates
• State energy programs
• Manufacturer incentives
• Energy Star certified models

Professional Services

Traditional Tank Water Heater

The most common type, stores 40-80 gallons of hot water in an insulated tank.

Cost Range:

$800 - $1,500

Efficiency:

60-70%

Lifespan:

8-15 years

Pros:

Lower upfront cost
Simple installation
Familiar technology

Cons:

•Higher energy costs
•Limited hot water supply
•Standby heat loss

Tankless Water Heater

Heats water on-demand without storing it, providing unlimited hot water.

Cost Range:

$1,500 - $3,500

Efficiency:

80-95%

Lifespan:

8-15 years

Pros:

Unlimited hot water
Energy efficient
Space saving
Long lifespan

Cons:

•Higher upfront cost
•Complex installation
•May need multiple units

Heat Pump Water Heater

Uses electricity to move heat from the air to heat water, very energy efficient.

Cost Range:

$1,200 - $2,500

Efficiency:

200-300%

Lifespan:

8-15 years

Pros:

Very energy efficient
Can cool surrounding area
Low operating costs

Cons:

•Requires warm climate
•Higher upfront cost
•Needs adequate space

Energy Savings Calculator

Here's a rough estimate of annual energy costs for a typical family of four:

Traditional Tank

$500-600

per year

Tankless

$300-400

per year

Heat Pump

$200-300

per year

Choosing the Right Water Heater

Consider Tankless If:

• You have high hot water demand
• Space is limited
• You want maximum energy efficiency
• You plan to stay in your home long-term
• You have natural gas available

Stick with Traditional If:

• Budget is your primary concern
• You have moderate hot water needs
• You plan to move soon
• You prefer simple, proven technology
• Installation space is not an issue

Additional Energy-Saving Tips

For Any Water Heater:

• Lower thermostat to 120°F
• Insulate hot water pipes
• Install low-flow fixtures
• Fix leaks promptly
• Drain sediment annually

Rebates & Incentives:

• Federal tax credits available
• Local utility rebates
• State energy programs
• Manufacturer incentives
• Energy Star certified models

Energy-Efficient Water Heater Options

Why Energy Efficiency Matters

Professional Services

Traditional Tank Water Heater

Cost Range:

Efficiency:

Lifespan:

Pros:

Cons:

Tankless Water Heater

Cost Range:

Efficiency:

Lifespan:

Pros:

Cons:

Heat Pump Water Heater

Cost Range:

Efficiency:

Lifespan:

Pros:

Cons:

Energy Savings Calculator

Traditional Tank

Tankless

Heat Pump

Choosing the Right Water Heater

Consider Tankless If:

Stick with Traditional If:

Additional Energy-Saving Tips

For Any Water Heater:

Rebates & Incentives:

Professional Services

Energy-Efficient Water Heater Options

Why Energy Efficiency Matters

Professional Services

Traditional Tank Water Heater

Cost Range:

Efficiency:

Lifespan:

Pros:

Cons:

Tankless Water Heater

Cost Range:

Efficiency:

Lifespan:

Pros:

Cons:

Heat Pump Water Heater

Cost Range:

Efficiency:

Lifespan:

Pros:

Cons:

Energy Savings Calculator

Traditional Tank

Tankless

Heat Pump

Choosing the Right Water Heater

Consider Tankless If:

Stick with Traditional If:

Additional Energy-Saving Tips

For Any Water Heater:

Rebates & Incentives:

Professional Services