Water Heating Solutions
Here’s some information to help you decide which type of water heater is best for you. Below are five common types. Some are eligible for incentives, others are not.
Heat Pump Water Heater
Uses built-in heat pump to heat water.
Advantages
- Can cost as little as $479
- Produces lots of hot water
- Can save more than $3,500 over the life of the unit compared to electric water heaters*
- Typically has a 10+ year warranty
- Helps dehumidify
Disadvantages
- Requires open room with 6’ or higher ceiling
- Requires condensate drain
- Reduced savings if in an intentionally heated space
- Air filter needs periodic rinsing
- As loud as a dehumidifier
*Source: energystar.gov accessed 4/28/2022
Gas Water Heater
Uses propane or natural gas. Can have a tank or be tankless.
Advantages
- Low operating cost if using natural gas
- Endless hot water (tankless models)
- ENERGY STAR® rated models available
Disadvantages
- High operating cost if using propane
- Requires exhaust venting
- May not work with low-flow fixtures (some tankless models)
Electric Water Heater
Uses electric resistance elements to heat water.
Advantages
- Low upfront cost
- Compact versions available
- No combustion
Disadvantages
- High operating cost
- Typically short warranty
- Not ENERGY STAR®
Tankless Coil Water Heater
Built into an oil boiler. It has no visible tank.
Advantages
- Lasts as long as the boiler
- Takes up no additional space
Disadvantages
- The least efficient water heating system
- Boiler must stay hot all year long
- Can cause boiler to “short cycle” which minimizes efficiency
- Not ENERGY STAR®
Solar Water Heater
Typically panels on roof plumbed to tank in basement with some backup.
Advantages
- Low operating cost
- Low environmental impact
- No combustion
Disadvantages
- High installation cost
- Backup required
- Solar exposure required
Click here for our Guide to Water Heating.