Appliance Buying Guide: Water Heaters

Article From HouseLogic.com


By: Joe Bousquin


Published: June 14, 2010


When it's time to replace your water heater, you'll find a wide array of high-efficiency models offering big energy savings.

Since hot water accounts for as much as 25% of your home's energy use, when your water heater dies, the replacement you choose will have a big impact on your monthly bills. New technologies make many of today's models far more energy efficient than that old tank you're getting rid of. Some of the greenest options are tankless units that heat water on demand, but even conventional water heaters--the classic metal cylinders that are by far the most popular in the U.S.--have gotten less expensive to operate.

Water heater basics
Most households need a 50-gallon tank, according to Jeff Haney, a product manager at manufacturer Rheem. That'll cost $900 to $2,000, installed, depending on which model you choose. Your plumber will put it where the old tank was, with the cold water supply pipe attached at the bottom of the tank and a hot water outlet pipe on top.



Inside the tank, a thermostat constantly assesses the water temperature and fires up a heating mechanism when it falls below the desired setting (120 degrees is standard). When you turn on a hot water tap, heated water flows from the tank and gets replaced by more cold water from the supply line below.



To do this work, water heaters use electricity, oil, or natural gas. Choosing a new water heater that uses the same fuel type as your old unit is the easiest way to keep replacement costs down, says contractor Andy Wargo of Marcellus, N.Y.

What to look for on the label
Within each fuel type, you'll find a range of models and price points. To compare, look for these key differences, marked right on the label:

First Hour Rating is a measure of how many gallons the unit can produce in one hour (which is more than its tank capacity since it starts making more hot water as soon as you draw some out). With the average shower using 20 gallons of water, a shave using a couple more, and washing breakfast dishes another 5 to 10, a busy family might need an FHR of 60 to 70 gallons to handle the morning rush. Your plumber can help you analyze your needs.



Energy Factor tells you how efficiently the unit operates. The higher the number, the more efficient the unit, and the less it will cost to run. In 2010, the highest EF units qualify for a 30% federal tax credit up to $1,500 for the purchase price and installation costs--as well as state credits and local utility rebates.

Check the Database of State Incentives for Renewables and Efficiency for local details.



Here's a breakdown of your basic water heater options from the American Council for an Energy-Efficient Economy:

Water Heater Type	Installed Cost	Yearly Energy Cost	Life (years)	Total Cost (over 13 Years)
Conventional gas	$850	$350	13	$5,394
High-efficiency gas	$1,025	$323	13	$5,220
Conventional electric	$750	$463	13	$6,769
High-efficiency electric	$820	$439	13	$6,528
Conventional oil [there are no high-efficiency oil options at this time]	$1,100	$230	8	$4,777

High-efficiency options
Three types of tank heaters are eligible for the federal tax credit: high-efficiency gas, gas condensing, and electric heat pumps. Ask for a Manufacturers Certification Statement from your retailer. If it doesn't provide one, the model doesn't qualify.



High-efficiency gas storage: These are just like standard gas water heaters, but with more efficient burners, better insulation, and other upgrades that make them about 7.5% more efficient, saving the average household about $30 a year. Costs for high-efficiency gas tank water heaters start around $850 (about $175 more than a conventional gas tank unit), plus around $200 for installation (the same as a conventional unit). As long as it has an EF rating of 0.82 or higher, it qualifies for a 30% tax credit in 2010.



Gas condensing: To achieve even higher efficiency, these systems vent the exhaust from the gas burner back through a closed system of coils inside the tank, allowing the water to absorb heat that would otherwise escape up the chimney, explains Potomac, Md., contractor Jay Irwin. That makes them about a third more efficient than conventional tanks, for savings of about $100 a year for a typical household. Energy Star models, which will hit the market in mid-2010, have an EF of at least 0.8 and qualify for the 30% tax credit in 2010.



Gas condensing units are expensive--around $1,600. And because they produce condensation as the exhaust cools, they need a special drain to discharge the runoff, pushing installation costs up to around $400.



Electric heat pumps: Heat-pump models work like air conditioners, by pulling heat out of the surrounding air. But rather than exhausting the heat outside like an air conditioner, they concentrate it and pump it into the water tank. As a result, they use 55% less energy than traditional electric water heaters and qualify for the tax credit in 2010 if they have a minimum EF rating of 2.0. Since these utilize ambient heat in the air, they produce the biggest year-round energy savings in hot climates.



You'll pay around $1,400, or three times what a conventional electric unit costs, but you could save $300 a year in energy costs, meaning it will pay for itself in about three years. Throw in the 30% federal tax credit, or $420, and you'll recoup your investment even faster.



Joe Bousquin's work has appeared in the Wall Street Journal, Kiplinger's Personal Finance and Men's Journal. His 80-year-old home in Sacramento, Calif., has a conventional gas-fired water heater--for now.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).Copyright 2010. All rights reserved.

Water Heaters: Repair or Replace?

Water Heaters: Repair or Replace?

Article From Houselogic.com

By: Joe Bousquin

Published: August 28, 2009

When deciding whether to repair or replace a water heater, consider its age, the severity of the problem, and how much money a new energy-efficient unit will save.

Chances are you don't give your water heater much thought-until you get hit with that first icy-cold shower, or go down to the basement to find the unit sitting in a puddle of water. Then you have to think fast: Repair it or replace it?

If it's a conventional storage-tank water heater nearing the end of its 10- to 13-year life span, the answer is easy. New models are up to 20% more efficient, saving as much as $700 in energy costs over the life of the unit. If your water heater is only a few years old, whether it's worth fixing depends on the severity of the problem and the cost of the repair. Not sure whether to repair or replace? Here are some considerations to help you decide.

IS IT A MAJOR PROBLEM OR A MINOR ONE?

A conventional water heater is simple. Cold water enters the tank, where it gets heated by an electric element or gas burner. A thermostat regulates the temperature (usually between 120 and 140 degrees). As the water heats up, pressure builds inside the tank. When you turn on a tap, the pressure is released, sending hot water to the faucet.

Because there are few moving parts, not much can go wrong. Before you even pick up the phone to call for service, check the basics, such as the pilot light in a gas unit and the circuit breaker in your electrical panel for an electric one. "Make sure it's not a control issue first," says Mike Rogers, senior vice president at home performance firm GreenHomes America. "It could be an easy fix."

Other possibilities include a burner or element going bad, the thermostat failing, or a stuck valve. Repairing or replacing those parts is usually not expensive; pros like Sean Hicks of home warranty company Warrantech say a plumber should be able to do the job for between $150 and $300. If the water heater is relatively new, that might make sense. But if it's more than 10 years old, or if the tank is leaking, that's another story.

WHEN REPLACEMENT IS THE ONLY CHOICE

Over time, water heater tanks can corrode, the result of naturally occurring minerals in the water reacting with the steel. Once a tank springs a leak, repair isn't an option.

The good news here is that today's models are far more energy-efficient than those of even a few years ago. Manufacturers now inject foam insulation between the tank and its outer shell, resulting in much higher heat retention. Glass liners on the inside mean the tanks are less prone to corrosion, too. "Today, that water heater is more like a giant Thermos," says David Chisholm of manufacturer State Water Heaters.

Expect to pay between $500 and $1,500 to purchase and install a new conventional storage unit. A high-efficiency model that meets Energy Star standards saves up to 20% in energy costs. Tankless, heat pump, and solar units offer even bigger savings and also qualify for a federal tax credit of 30% of the total cost of equipment and installation, up to $1,500. While substantially more energy efficient, these types of water heaters can cost three to five times more to buy and install, so consider payback carefully. "If you're going to be in the home 15 or 20 years, you'll get your money back," says Warrantech's Hicks. "If you move a lot, you won't."

MAKE SURE TO FACTOR IN HIDDEN COSTS

Even with a conventional water heater, replacement might not be as simple as hauling out the old one and hooking up the new. Many cities have updated their building codes in recent years, so if you replace your water heater, you may have to upgrade the mount it sits on, the size or type of its venting system, the drain pan underneath it, even the supply pipes. Before work starts, ask your installer to tell you about any additional costs.

If you know your way around plumbing tasks, you may be able to install the new unit yourself. Most manufacturers provide detailed instructions. You'll need to turn off the water and gas or electric before you begin, and take particular care to vent gas models properly.

GET THE MOST FROM YOUR WATER HEATER

Whether you repair it or replace it, your water heater will perform better and last longer if you flush the tank once a year to remove sediment. A bonus: Without all that gunk inside, it will operate more efficiently, saving you money. Also, check the anode rod-sometimes called the sacrificial rod-every three years. An aluminum or magnesium probe inside the tank, it collects corrosive elements and should be replaced when it gets caked or eaten away. A new one costs about $30. Stay on top of these simple maintenance tasks, and you can avoid thinking about your water heater again for a good long time.

Joe Bousquin's work has appeared in the Wall Street Journal, Kiplinger's Personal Finance, and Men's Journal. The happy owner of a 79-year-old home in Sacramento, Calif., he has a new reverence for his water heater.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS (R).

Copyright 2010. All rights reserved.