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Hey Diane - We need to replace our water heater in our basement. Any suggestions on what to look for and what might be most efficient?
You're smart to think ahead. Most people don't worry about replacing their water heater until after it breaks. It's far better to take the initiative when you have time to consider your needs and weigh your options.
Next to general heating and cooling, we spend more of our home energy dollars heating water than on any other activity at home. According to the American Council for an Energy-Efficient Economy, the average household spends $400-$600 per year on water heating. Plus, the energy that fuels water heaters contributes to climate change and air pollution. The water heater you buy matters — not just to your pocketbook, but to the planet, too.
How can you make the best choice?
Evaluate Your Fuel Options. Generally, the most energy-efficient systems available are gas-fired. If you happen to own an oil-fired boiler, experts recommend purchasing an indirect tank if your boiler is relatively new, or an integrated unit that supplies both space heat and hot water. Most of the time, electric water heaters are more expensive and, if your utility uses coal to generate that electricity, they create more air pollution than its gas-fired alternative.
High-Efficiency Gas Storage Water Heaters have higher levels of insulation, more efficient burners and heat traps that substantially reduce standby heat loss.
Pick the Right Size. Your water heater should be able to provide enough hot water to meet the needs you have during the busiest time of the day. If your current water heater usually doesn't run out of hot water during peak demand, you can probably replace it with one that is the same size. Determine the water heater's capacity by looking at the name plate or yellow Energy Guide sticker. If you are assessing new models, make sure to look at the first-hour rating (to determine how much hot water can be delivered during the busiest times of the day.)
Consult with a contractor or retailer. Get a quote from a licensed contractor or reputable retailer. Make sure to receive the cost estimates in writing. Then, confirm that the company understands local residential building codes and is listed with your local Better Business Bureau.
The American Council for an Energy Efficient Economy offers more guidance on buying a water heater here.
Note: No matter what kind of water heater you buy, you can stretch its impact by insulating it with an inexpensive water heater blanket.
For more tips on how to save energy in your home, see Big Green Purse's Top Ten Ways to Save Energy and Money at Home.
