Traditional fuel-burning water heaters lose a significant amount of heat energy through the process of venting toxic gases. High-efficiency models often have a second heat exchanger that mitigates much of that loss. That upgrade is certainly worth it from an environmental standpoint, as your carbon footprint will be lower. Still, for many homeowners, the key considerations are whether that will result in lower overall costs and improve safety. Let’s examine the pros and cons to determine whether a high-efficiency water heater is worth it for your household.
Initial Costs
High-efficiency water heaters cost more because they have additional and more sophisticated components. These can include the aforementioned heat exchanger but also a sealed combustion chamber, modulating gas valve, and so forth. With equipment and installation included, the total cost to install a high-efficiency water heater can be twice as much.
You may also have to factor in plumbing and electrical upgrades. In older houses, a high-efficiency gas water heater will often require a larger-diameter gas pipe. If switching from electric to gas, you have to add in the cost of the ventilation system. If switching to tankless, you may need other plumbing upgrades and even an electrical panel upgrade.
Energy Incentives
Due to the higher initial costs associated with high-efficiency water heaters, there are incentives available to help offset them. Most incentives require you to purchase a water heater that’s earned the ENERGY STAR label. You can explore the current ENERGY STAR rebates through the Environmental Protection Agency (EPA) website. Be sure to check with your utility company for local offers, and talk to your accountant about eligibility for the federal tax credit.
Month-to-Month Bills
The EPA estimates that an ENERGY STAR storage water heater will lower your water-heating-related energy bill by at least 8%. While that may not make a dramatic difference month to month, it adds up over the course of a year and certainly over the 15 or more years your new water heater will last. Comparing your estimated bill versus your current bill can help determine how long it will take to recoup the extra cost minus any incentives.
Tank vs. Tankless
High-efficiency tank water heaters are still inherently inefficient in that they experience standby energy losses. Condensing models are better in this regard, and you can help to minimize them further through proper insulation. Still, a high-efficiency tankless system will be better because there won’t be any standby losses. In fact, investing in an on-demand water heater can increase the month-to-month savings for the average home from 8% to as high as 34%.
Safety Considerations
Another consideration is safety, as high-efficiency water heaters often have sealed combustion chambers. With any fuel-fired water heater, there’s a risk of carbon monoxide (CO) poisoning. With sealed chambers, there’s less risk of CO exposure because seepage is much less likely.
Experts have helped many families weigh the upfront costs and long-term savings of such systems. To schedule an in-home consultation for a high-efficiency water heater in Rochester, NY, call Nichols Electric and Plumbing today.
