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Best Gas Water Heater

By: Carl Laron on September 12, 2016

Gas water heaters are energy efficient

Gas water heaters are a popular choice thanks to their energy efficiency. In addition, in many parts of the country, gas is a relatively low cost fuel. Because of that, the experts at ConsumerReports.org say gas models cost about half as much to run compared to conventional electric storage tank water heaters, although they do cost a bit more upfront. If you can install a gas line at a decent cost or already have natural gas service in your home, gas water heaters are easy to install and provide significant savings over time. Some gas-fired units can also run using propane; while fuel-cost savings might be less depending on the current cost of propane, it still will cost less in most cases than using electricity.

Gas hot water heaters work faster than electric models, which means you'll have more hot water available during peak usage. That also means that many households can get by with a smaller storage tank -- especially important in light of current NACEA efficiency regulations, which we discuss in detail in the introduction to this report.

If you have a family of five or so, we saw some great owner reviews for the Whirlpool 50T12-40DNG (Est. $725), a 50 gallon water heater with a tall profile. It is Energy Star Qualified, and with an ER of .67, easily meets all 2015 energy efficiency rules.

The features on the Whirlpool 50T12-40DNG are ample. Those include a low NOx (nitrogen oxide) burner to reduce emissions by up to 33 percent. It's also certified to work at high altitudes of up to 10,100 feet above sea level. The electronic ignition system shuts off the pilot when the heater is on standby, cutting gas consumption. The 50T12-40DNG has a tall profile (63.25 inches) meaning installation in a full basement or closet is required. The limited warranty covers parts for 12 years and labor for three years, which is better than what's found on many competing gas water heaters.

User feedback is on the Whirlpool 50T12-40DNG excellent. Though some are originally posted at the manufacturer's web site, you can find almost 320 user reviews at Lowes.com, the primary seller of the Whirlpool 50T12-40DNG, where it earns a rating of 4.5 stars. Around 95 percent give it their recommendation.

If your family is a little smaller, the Whirlpool 40T12-40DNG (Est. $700) is worth considering. Its 40-gallon capacity is suitable for families of up to four people. Like the Whirlpool 50T12-40DNG, this water heater has an EF of .67 and is Energy Star Qualified. Its feature line up (save for capacity) and warranty are identical as well.

There are roughly 340 reviews of 40-gallon Whirlpool 40T12-40DNG gas water heater at Whirlpool's site, and some of those are also reflected in the more than 50 reviews we saw at Lowes.com. Regardless, satisfaction is high (4.5 stars at both sites). Roughly 97 percent of owners weighing in at WhirlpoolHeaters.com recommend this 40-gallon hot water heater, while it gets a thumbs-up from 91 percent of Lowes.com customers.

If there's a drawback to these Whirlpool gas water heaters is that they are a little on the pricey side. If your budget is tighter, the Rheem XG40T09HE40U0 Performance Plus (Est. $500) 40-gallon water heater is worth a look. It's not as energy efficient as the Whirlpool models above, and is not Energy Star Qualified, but its .62 EF complies with current NACEA regulations.

Satisfaction is strong at HomeDepot.com, the primary retailer for the Rheem XG40T09HE40U0. It earns a 4.6-star rating following more than 450 reviews, though some of those reviews were originally posted at Rheem's web site, with 94 percent of owners giving it a recommendation. At FurnaceCompare.com, the Rheem Performance Plus series lands in third place on the site's list of top water heaters for 2016, based on the owner feedback that independent site accumulated.

The 40-gallon capacity is fine for families of two to four people. The XG40T09HE40U0 has low NOx emissions and is rated for altitudes of up to 10,200 feet. Rheem provides an excellent warranty for a lower-priced water heater: 9 years for parts and two years for labor. This water heater is just a touch smaller than the Whirlpool 40T12-40DNG (at 60.25 inches tall and 19.5 inches wide versus 64.25 inches tall and 19.75 inches wide for the Whirlpool 40 gallon model), so it might be a better fit if installation space is tight.

Condensing gas water heaters

A condensing gas water heater works much like a standard water heater, but with a design change that can greatly improve efficiency. As explained at the Energy Star website, some condensing gas water heaters "use a secondary heat exchanger that extracts more heat from the combustion gas, cooling it to the point where there is condensation." This heat exchanger becomes a supplemental heat source, heating the water in conjunction with the burner, resulting in higher overall efficiency and lower fuel costs (by about 30 percent).

While the water heaters described above meet current NACEA regulations for water heaters that are 55 gallons or lower, if you are looking for a larger storage tank gas water heater, regulations pretty much limit your choices to a condensing design. Though these gas heaters cost more than conventional storage tank models, the energy savings makes them worth considering even if you are considering a smaller (sub 55-gallon) capacity.

Condensing gas heater technology is relatively new, however, and there are few available models and even fewer available reviews. One exception is the Vertex line from AO Smith. These condensing gas water heaters are available in 50- and 75-gallon capacities, and we saw some good feedback for the 50-gallon AO Smith GDHE-50-NG (Est. $2,280). We saw the most feedback at SupplyHouse.com, where the GDHE-50-NG draws more than 110 reviews and a 4.7-star rating. Around 96 percent say they would recommend the gas water heater to a friend.

Performance is impressive -- and so is efficiency. The AO Smith Vertex GDHE-50-NG is Energy Star Qualified and boasts a thermal efficiency of 96 percent. The company claims that it produces enough hot water to run 3.4 showers at a time, or unlimited back-to-back showers thanks to its very fast recovery time, and reviews seem to back this up. The gas burner is a low NOx design and the unit is backed by a 6 year warranty.

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