Whether you are building a new home or looking to replace your existing water heater, investing in an energy efficient water heater can save you a considerable amount of money over the life of its use. Energy efficient water heaters are not only more practical in an economic sense, but they can also help to reduce your impact on the environment and in many cases they provide superior function to the standard models. Below we will cover some of the benefits and main reasons why you may be interested in an energy efficient water heater.

For the most part, conventional water heaters that use a storage tank are the least efficient option for home water heating, however there are some electric and gas storage tank units that do provide improved efficiency. Many of the increased efficiency units with storage tanks do provide improved efficiency but the best efficiency ratings belong to tankless on-demand water heaters, gas condensing units, electric heat pump systems and solar water heating with an electric back-up. The electric heat pump system gets the best energy rating, but the energy efficient water heater that is right for your home will mostly depend on the area in which you live and the cost of the water heater.

The most obvious advantage to investing in an energy efficient water heater is the money it will save you over the life of its use. Heating water is one of the most significant factors when it comes to home energy consumption. In most homes the only factor that contributes more to the cost of home energy bills is the climate control system. Depending on the type of water heater you choose, you can reduce the cost of water heating by up to 30%. Many of the efficient water heaters cost little more than their standard counterparts and the savings they provide more than pays for the difference in cost.

Installing an energy efficient water heater is also a great way to help the environment. Most efficient water heaters increase efficiency by reducing the amount of fuel or electricity used to heat the water. This is achieved by either eliminating the need for a storage tank and heating the water as you need it or by reducing the amount of heat that is lost in the transfer to the water. By reducing the amount of fuel or electricity used to heat your water you are also reducing the amount of greenhouse gas emissions.

With the conventional storage tank style water heater you run the risk of running out of hot water in the middle of usage. Since many of the energy efficient water heaters actually heat the water as you use it, the home benefits from a constant supply of hot water. That means not only are energy efficient water heaters more cost effective and good for the environment, but they are also more practical from a functional standpoint.

When selecting an energy efficient water heater, you will want to become familiar with the benefits of the many different varieties. Consider the availability and cost of natural gas and the cost of electricity to help select the type of unit that is right for your home. Every type of water heater has an energy rating that can help the consumer to understand the overall efficiency of the unit. A guide to the efficiency ratings is available from the Energy Star program run by the Department of Energy and ratings can be found for the individual unit by looking at the product label.