How to Choose a New Water Heater

It's the dead of winter, freezing cold outside, and you seek
comfort in the piping hot confines of your morning shower.
With the lights dimmed, the water hits your face and rolls
over your shoulders. Your muscles relax one by one as the
warmness of the water finds its way down your legs to your
chilly, restless feet. Lathered with soap and shampoo, you
slump against the warming tile, eyes closed. You consider
falling back asleep standing fully upright when it happens --
a sudden burst of ice cold water hits your chest like acid
rain. You crank the cold water down to zero with no result.
The water temperature has turned against you, refusing heat
in a stubborn show of determination. The cruel reality hits
you -- your water heater has just bought the farm.

A visit to your local big-box home-improvement store is
overwhelming, to say the least. You're faced with too many
brands and too many sizes to choose from. Different fuel
sources and energy ratings confuse you. And what's the deal
with these heaters that don't even have a tank? How on earth
can they meet your needs? Unfortunately, your big-box
home-improvement employee helps you none -- you're going to
have to figure this one out on your own.

Water Heater Fuel Sources

Electric - uses large coils that hang down into the tank to
heat the water. The coils are similar to the ones in
an electric oven. Generally, electric water heaters aren't as
efficient as those powered by other fuel sources, and
electricity is more expensive than natural gas or propane.
However, they're less expensive up front and don't require
venting. If your water demand is small, then it may be a good
way to go.

Natural Gas - uses a gas burner at the bottom of the tank,
with a venting chimney that runs through the center and out
the top. The carbon dioxide and water vapor byproducts are
vented through the chimney and then run outdoors through your
house chimney or side wall vent. A gas pilot light or
electric spark produces the flame. Natural gas models cost
more than electric heaters but are more efficient to operate.

Propane - works in the same way as a natural gas, but uses
propane as the fuel source. Propane is generally used as
a fuel source when a home doesn't have access to natural gas.
The propane is supplied from a large tank on the property.

Oil - similar to gas and propane models, but mixes the oil
with air using a power burner to create a vapor mist, which
is then ignited by an electric spark. Like propane, oil heat
is typically used when natural gas isn't available and is
also delivered to the location and stored in a large tank.

Solar - uses the heat from the sun to produce hot water. The
heat is harvested by an "absorber" panel that typically sits
on your rooftop. Tubes inside the panel either directly heat
the water flowing through them or a transfer fluid that warms
a heat exchanger. This exchanger heats your home's water in
a storage tank. Solar systems can be used in conjunction with
a conventional system, much like a hybrid car uses both
gasoline and electricity, to cut up to 80 percent of your
water heating bill.

Heat Pump - takes heat from the air and delivers it to the
water via electricity. They're two to three times more
efficient than electric water heaters, but consumer demand
is low and there are few manufacturers. They cost more up
front than conventional units and can only be used in areas
where the temperature stays between 40 and 90 degrees
Fahrenheit (4.4 to 32.2 degrees Celsius) year-round.

As you can see, your decision largely depends on where you
live. If you have access to natural gas, it can be a very
fuel efficient way to go. If you live in outlying areas where
it isn't available, then your home is already set up with
either oil or propane. Solar heaters are best used in areas
where there's abundant sunshine, so if you live in Seattle,
then it's probably not the best idea. Heat pumps can shave
a great deal of money from your bill­ but are fairly uncommon,
and this scares off many consumers. If you want a cost
effective system that's easy to maintain and service, then
a natural gas water heater is probably your best bet.