Advantages of Using a High Efficiency Water Heater

Many homeowners opt for a high efficiency water heater for hot water needs. These go a long way to enhance energy efficiency in the home. Various models are available on the market. Storage water heaters use an insulated storage tank. Demand water heaters heat water on demand and don’t use a storage tank. Heat pump water heaters draw heat from the air around the heater to heat water contained in a storage tank. These heaters may be fueled by electricity, oil, propane or natural gas. Solar-powered models are also available. Below are some advantages of high efficiency water heaters.

Reduced Energy Costs

High efficiency water heaters use less energy than standard water heaters. Many models use up to 50 percent less energy. This is partly because they take less time to heat water. Tankless models heat water only on demand. This reduces on energy utilization. Conventional models have to operate day and night in order to keep the water hot. High efficiency heaters are also well insulated, which enhances energy efficiency. Solar-powered models reduce operational costs by up to 70 percent. Although the initial purchase cost of high-efficiency heating systems may be high, you can recoup from energy savings in the long run. This makes the heaters a cost-effective investment.

Tax Benefits

A high efficiency heater qualifies you for a tax rebate. The heaters are one category of appliances covered in federal tax incentives for energy efficiency. Federal credits for energy efficiency vary from state to state. Generally, they allow you to reclaim part of the acquisition costs on your high efficiency heater. State tax incentives for energy efficient homes encourage consumers to participate in environmental resource management.

Low Maintenance

Unlike conventional water heaters, high efficiency models have lower maintenance needs. Advanced technology is used to produce these heaters. Manufacturers adhere to high standards that guarantees efficiency in hot water supply. It also lowers the need for frequent maintenance.


High efficiency heaters cause less air pollution both indoors and outdoors. These systems utilize less energy and produce minimal greenhouse emissions. High efficiency heaters are also produced with replaceable and recyclable parts. This reduces the discharge of waste material into landfills. All these factors make high-efficiency water heaters a smart choice if you have green concerns.

Less Water Wastage

Tankless high efficiency water heating systems utilize less water. This is because they don’t use storage tanks but heat water on demand. It reduces on water consumption which gives you lower water bills. If you live in an area where water costs are high, a high efficiency heater can help you downscale costs.


High efficiency systems are generally small and compact. The minimal space requirements make it easy to install the unit wherever desired. Tankless systems have a regulated maximum temperature that the water can heat to. This temperature mark is set by the manufacturer and is considered as safe. It eliminates the risk of scalding. Conventional heaters can heat water to very high temperatures due to the prolonged heating period. This increases the risk of scalding.


High efficiency heating systems have a longer life span than conventional heaters. Many manufacturers give a warranty of at least 20 to 25 years on high efficiency units. Conventional units generally have a life span of 7 to 15 years. Although the units cost more to purchase, the extended life makes them a cost-effective investment.