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GAS WATER HEATERS
Whether you are replacing an existing water heater or buying a new home with a choice of equipment, it’s important to know the facts about water heaters.
Economics
- natural gas water heaters are the most efficient and economical on the market
- a natural gas water heater can operate for about half the cost of an electric water heater
- natural gas heats water twice as fast as electric
- tankless water heaters produce a continuous supply of hot water when it is needed
Efficiency
The energy efficiency of a water heater is reported as an energy factor, or EF. An energy factor is dependent upon how quickly the energy source (gas, electric, etc.) heats the water, how much energy is lost when the water heater is idle (only storing hot water) and energy lost as the unit cycles on and off. More efficient water heaters will have higher EF’s. Due to differences in fuel types (gas or electric) never compare the EF of one type of water heater with the EF of another type of water heater. Only compare water heaters of the same fuel type. For instance, an electric water heater with an EF of 0.9 may cost more to operate than a gas water heater with an EF of 0.7.
Cost Comparisons
When shopping for a new water heater, make sure you look at both the purchase price of the unit as well as the annual operating costs. To compare units, use the federally mandated yellow EnergyGuide label found on most appliances. For water heaters, the EnergyGuide label will show annual operating costs using national average energy prices, how a particular model compares with other similar models and the first hour rating (FHR). The FHR is a measure of how much hot water the water heater will deliver during a busy hour. But beware, a larger tank does not necessarily mean a higher FHR. Gas water heaters have higher FHR’s than electric water heaters of the same storage capacity.
Lifetime Value
Is it worth paying a higher purchase price for a water heater in order to gain additional efficiency? You can calculate the “payback” period for buying a higher efficiency model. (This is the number of years until you “pay yourself back” for the initial higher cost.)
- Using the EnergyGuide label, compare the annual operating costs of all models you are considering.
- Look at the price premium (additional cost of higher efficiency unit).
- Divide the price premium by the annual operating cost savings. A result that is less than 1 is a fraction of a year (.5 equates to 6 months)
- Use the chart below to record your findings:
| Water Heaters | System One |
System Two |
System Three |
| Type of Fuel | |||
| Installation Price | |||
| Purchase Price | |||
| Price Premium | |||
| Annual Operating Cost (from Energy Guide Label) | |||
| Payback | |||
| First Hour Rating | |||
| Efficiency* |
