Draining Dollars from Water Heating Bills
July 16th, 2009
Categories:Home Ownership
When it comes to buying an energy efficient home, windows, insulation, appliances and lighting tend to get the most attention. What’s commonly overlook is the amount of energy used by the water heater.
According to the Department of Energy, between 10 and 20% of a household’s total energy consumption goes to the water heater. There used to only be one type of water heater with two options: electric or gas. Today the types of water heaters available are growing and so are the incentives and regulations to start converting to a more energy efficient model.
Here are the topics we’ll cover:
- 4 Types of Water Heaters
- How to Select a New Water Heater
- Resources for Finding State and Federal Incentives on Water Heaters
4 Types of Water Heaters
- Conventional Tank
- Demand/Tankless
- Solar
- Heat Pump
Conventional Tank Water Heaters
Overview: Traditional water heaters operate by using electricity or gas to heat water stored in a tank. Electric systems are typically cheaper to purchase, but often involve a higher monthly energy cost. New technologies involve using solar hear or warm air to heat the water.
Advantages: The storage tank can hold a large amount of water, making hot water constantly available for households that need a constant supply of hot water.
Disadvantages: The storage tank continuously looses heat through the walls of the tank. Which means the water needs to be continually heated and the larger the tank the more heat being used and possibly wasted.
Demand / Tankless Water Heaters
Overview: Demand water heaters, also known as tankless water heaters are the fastest growing alternative to the traditional tank water heaters and make up 8 percent of new water heater sales. As the name implies the hot water is not stored, instead it is heated when needed by passing the cold water through a heating element.
Advantages: Because these systems don’t waste energy by reheating water stored in a tank, they result in an 8 to 34% higher efficiency than traditional systems.
Disadvantages: The supply of the water heater is limited by flow rate, which is typically between two and five gallons per minute. For households using a lot of water at one time, this might not be enough and someone could find themselves in a cold shower. For those of us in Arizona, that might not be too bad every once in a while.
With newer technology comes higher costs, and these units cost two to four times as much as traditional water heaters. It is also likely they will require additional wiring and a high capacity electrical panel or for gas-fires systems a direct-venting system. To help with these costs look for federal, state and utility company rebates.
Solar Water Heaters
Overview: “Not Just for Sunny Locales” seems to be the new selling phrase for these systems as many people think solar water heaters are only good for places like Arizona, California and Hawaii where the sun never goes away. With Hawaii’s recent mandate for all new homes to be built with solar water heaters by 2010, its becoming apparent solar water heaters are going to become the new wave of energy efficient water heaters.
All solar water heaters use a solar collector, which is usually placed on the rooftop. The solar collector or panels as we often refer to them, gather energy to heat a tank of stored water. Active systems use a pump to circulate the water to and from the heating element. While passive systems (less expensive, less efficient) rely on the rising of hot water and sinking of cold water to mimic the actions of the pump from the active system.
Advantages: A big promotional and selling point is that solar water heaters can be used in most climates, they are highly energy efficient and have very low operational costs. Putting the sales pitches aside, the true advantage of a solar water heater is the amount of attention and the volume of sales involved with solar water heaters. Due to the volume of government use, and government incentives to use solar water heaters, we can expect large improvements in technology, efficiency and a reduction in cost in the near future. The only question is, do you invest in today’s technology with today’s incentives or hold out to see what tomorrow brings?
Disadvantages: The cost involved with purchasing a solar water system can be well, astronomical. This is where it pays to do your research and get a good understanding of what incentives are available. Look for incentives to help with the cost of investing in a solar water heating system at the federal, state and company levels. A list of resources can be found at the end of the article.
Heat Pump Water Heaters
Overview: Heat pumps are unique as they don’t generate heat to produce hot water. Instead they heat the water by moving it from one source to another. Much like a refrigeration system working backwards, they can remove heat from the surrounding air and use it to heat the water. Geothermal heat pumps do the same by pulling the heat from the ground. Sometimes you’ll find these systems are auxiliary to heat pump-drive air conditioning and heating systems.
Advantages: The efficiency of a heat pump water heater will vary by climate and environmental conditions.
Disadvantages: As with many of the more energy efficient solutions, you may need a backup system to ensure cold showers are not in your future.
How to Select a New Water Heater
When it comes to doing your research and selecting a new water heating system keep in mind content and information written for other parts of the country might not apply. For example, solar water heaters might not be a practical year round solution for Alaskans who find themselves with very long nights during half the year.
For those of us in Arizona, solar water heaters are a great solution. Companies like SRP will essentially buy the extra energy you collect and sell it back to you (normally at the same rate) allowing you to get the most savings from your solar water heating system and reduce any potential waste.
Here is a list of factors to consider:
- The volume of hot water used
- Climate and site location (for solar)
- The cost of available fuel
- The lifetime system cost including:
- purchase price
- installation
- operational costs
- maintenance
- lifespan
- Available financing, tax incentives and rebates
- Whether the home is new construction or existing
- The energy efficiency of the system compared to others
Resources for Finding State and Federal Water Heater Incentives
EnergySavers.gov – Comprehensive overview on water heating options and costs
SRP.net – Solar Energy Systems Information
APS.com – Solar Water Heating Information
EnergyStar.gov – Federal Tax Credits for Energy Efficiency
DSIREusa.org – Database of State Incentives for Renewables and Efficiency in Arizona
Do you have any personal experience with energy efficient water heaters?
Related posts:
- 6 Tips to Cooling and Heating Your Home Efficiently
- Top 10 Ways for Renters to Reduce Energy Costs
- Got SRP? Expect to Pay More in November
- The Basics of Owning a Green Home in Arizona
- FAQ: Why Do I Have to Pay the Hazard Insurance Premium Up Front?
[...] Home Buying Different » Draining Dollars from Water Heating Bills Tags: bosch gas tankless water heater, Gas Tankless Water Heater [...]
The Department of Energy (DOE) and the Environmental Protection Agency (EPA) have both endorsed geothermal heat pump systems as among the most energy efficient, environmentally clean, and cost effective systems for temperature control. Homeowners can expect to enjoy a comfortable, reliable, and economical system while also reducing energy use and pollution.
Ground source heat pumps provide heating, air conditioning, and, if so equipped, supply the house with hot water. They are smaller than a traditional heating/cooling unit and can easily be retrofitted into any home. The mechanical components are safely located underground or within the home – which eliminates fears of vandalism or theft. With extreme durability the parts can last a generation and require very little maintenance. These systems do not have fans, so instead of hearing and feeling blasts of air, you will enjoy a quiet, consistent temperature throughout the day. Geothermal heat pumps can even improve your health and reduce allergies because they excel at humidity control, thus there is a reduced chance for mold and mildew growth.
In addition to being practical and providing a luxurious atmosphere, geothermal heat pumps are exceptionally good for the environment and extremely safe. These systems do not have on-site emissions or flammable materials. By eliminating any combustion you do not have to worry about fumes, odors, or carbon monoxide in your home. According to the U.S. Department of Energy, if just 100,000 homes converted to a geothermal heating and cooling system, carbon dioxide emissions could be reduced by 880 million pounds. Currently, atmospheric CO2 is 30% higher than it was 200 years ago and if not reduced can cause serious detrimental global impacts. Geothermal technology offers a wonderful solution to lowering these greenhouse gases.
There has never been a better time to invest in a geothermal heat pump system. Contrary to popular belief, geothermal units are surprisingly affordable and save you more and more money over time. While investing in a geothermal unit is initially more expensive than a traditional system, the annual savings on energy bills more than compensates for the initial output and you can usually expect full payback in three to five years. With efficiency ratings at least three times higher than other heating and cooling systems it is estimated that you can save between 30 to 70% on heating and cooling costs. Also, recent Congressional legislation has provided a 30% tax credit for the installed cost of a residential heat pump system, no cap.
When you consider the durability, comfort, cleanliness, and energy savings it is obvious why the government has endorsed them as the best systems for temperature control!
Note that tankless water heaters may be a good alternative for businesses as well as homes. Pubs, Restaurants, Hotels, Motels, and more, all use TWH’s for the very large cost savings, being able to expense or depreciate the up-front costs. So if you have an in-home business, or you just want to make points with your boss by cutting expenses, keep that in mind.
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