Types of Water Heaters from Consumer Reports

Water Heater Buying Guide

You probably don't think about your water heater until a cold shower or a telltale puddle suggests you need a new one. How to choose? Most look alike on the outside. But a look inside tells a different story. Storage tanks cost less but tankless heaters save energy by only heating the water you draw.

Types

Heating water accounts for up to 30 percent of the average home's energy budget. Some makers of gas-fired tankless water heaters claim that their products can cut your energy costs by up to half over regular storage heaters. So is it time to switch? Compare the types of water heaters.

Storage-tank heaters

Most of these are steel cylinders whose internal tanks are fed by a cold-water inlet pipe (the dip tube) that protrudes into the tank, a shutoff valve is also on this line. The water is heated as it exits through a hot-water pipe atop the tank. Another pipe that emerges from top of the tank contains the shut-off valve, which opens up if the pressure within the tank exceeds a preset level. Near the bottom of the tank, a spigot-like drain valve allows the tank to be periodically emptied. A small control unit outside the tank allows temperatures to be set and controls the pilot-light valve on gas models.

Gas is the fuel of choice if you already have natural-gas service or can run a gas line to your home economically. Gas models cost more than electrics and are harder to install. But on the basis of national-average fuel costs, a gas water heater will cost you about half as much to run as a comparable electric model. Thus, a gas heater might amortize the up-front difference in cost in as little as a year.

Tankless heaters

Tankless storage tanks are suitcase-sized units that heat water only when needed by using an electric coil or natural gas to heat water passing through a network of copper pipes inside. They eliminate the risk of tank failure and the energy lost by constantly reheating water. Consumer Reports did not test electric tankless water heaters because they were judged not capable of providing for the needs on an entire household.

High-efficiency storage-tank heaters

We’ve also tested a high-efficiency gas-fired storage water heater. The manufacturer claimed that its installation costs were similar to that of a regular storage model. But its high cost offsets much of the estimated annual savings.

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