Storage-tank water heaters are the most popular and least costly products (both to buy and install). However, these appliances use more energy than tankless systems, since you're paying to keep the entire tank of water hot until you need it. For many considering going tankless, the big question is whether or not the energy savings will be enough to offset the higher initial purchase price and installation expense of a tankless water heater. The editors of ConsumerReports.org contemplate this question, and the quick answer is "probably not." Editors' calculations estimate a break-even period of about 20 years based solely on energy use. However, the federal tax credits for tankless water heaters could shave a few years from the payback period.
Instead, reviews recommend specific brands of traditional tank-style water heaters more than others. Ranking at the top, based on surveys of builders and contractors, are Rheem, Ruud (owned by Rheem), A.O. Smith and Bradford White. These brands are sold primarily to builders and plumbers and through independent retailers rather than in big-box stores. A survey of 24,000 appliance consumers also ranks independent retailers highest in terms of customer satisfaction for purchases of large appliances. Among big-box brands, GE (made by Rheem, sold at Home Depot) ranks higher than the brands made by A. O. Smith: American, Kenmore (sold at Sears), Maytag and Whirlpool (sold at Lowe's).
Storage-tank water heaters are available in many prices and sizes, typically coming with warranties of six, nine or 12 years. ConsumerReports.org editors recommend spending the extra money to buy a 12-year water heater if possible. Tests there -- cutting 18 water heaters in half to check their inner construction -- find that for most brands, the models with a 12-year warranty are made much better.
If you're replacing an existing water heater, the least expensive solution is to choose a new model that uses the same fuel: natural gas, propane, oil or electricity. This minimizes installation costs and in some cases, can make installing the water heater easier. Natural-gas water heaters cost more to buy and install, but they may save consumers more money in utility bills over time -- heating water at about one-third the cost, on average, of an electric water heater. Space becomes an issue, too, as storage-tank water heaters become more efficient. The extra insulation takes up space, so a new 50-gallon water heater may not fit into the same space as an older model. Be sure to check measurements before having a new water heater delivered.
When it comes to tank size, reviewers say 40 gallons is the minimum size tank for two people, with 50 gallons better suited for a family of three or four. If the master bedroom suite is far from the other bathrooms, it's often better to have two water heaters to minimize heat loss from the water lines, since water loses heat the further it travels even through well-insulated pipes. Another option is to use a tankless water heater (see below) for the master bathroom. Tank water heaters are available in larger sizes -- 65, 75, 80 gallons or even more -- but experts say that efficiency often decreases, especially for gas models.
Experts also say that tank-style water heaters should be equipped with thermal expansion tanks. These small tanks give extra hot water a place to go, preventing wear and damage not only to the main tank but to the entire plumbing system. Many codes require a thermal expansion tank when a new water heater is installed, but it's a good idea to add one to an existing water heater to prolong its life.
Setting units at the right temperature can also help lengthen a unit's lifespan. That's because setting a water heater's temperature too high can strain the unit over time -- setting the stage for a potential breakdown later on. Setting water heater thermostats at 140 degrees Fahrenheit is the recommendation of the European Guidelines for Control and Prevention of Travel Associated Legionnaires' Disease. Experts at the Occupational Safety and Health Administration (OSHA) say that at temperatures below 140 degrees, the water stored in a water heater can breed legionella bacteria, which causes Legionnaire's disease. This is also a reason not to turn off a tank-style water heater when you leave the house; the stored water needs to stay hot enough to be safe. To prevent scalding, each faucet can be equipped with an automatic faucet control (*Est. $15).
Tank leaks and flooding are the top problems owners report with tank-style water heaters. Steel water heaters are lined with glass or porcelain and suspend anode bars inside. The anode bars rust first, so as long as they're in place the tank won't rust through. Heating hard water builds up corrosion quickly, especially on gas water heaters, so regular maintenance and/or a whole-house water softener are important in maximizing a storage heater's life. Some water-heater tanks are lined with stainless steel, to alleviate this problem. You can minimize damage from a flood by installing a water heater on a flood pan and adding an inexpensive flood-alert device.
While natural-gas water heaters cost more to buy and install, experts say they may save consumers more money in utility bills over time -- heating water at about one-third the cost, on average, of an electric water heater. Even propane water heaters save money, compared with electric models, over the long run. Gas water heaters also heat water faster, so a 40-gallon gas water heater may do the job of a 50-gallon electric water heater.
If energy efficiency and unlimited hot water matter more to you than a product's price, reviews recommend the A. O. Smith Vertex series, which uses a condenser. A June 2009 article in the Journal of Light Construction recommends the A. O. Smith Vertex water heaters as an option superior to tankless water heaters for existing homes. This is because the Vertex models provide the same advantages -- low utility bills and a practically endless supply of hot water -- but have much lower installation costs. At PlumbingZone.com, plumbers comment about how fast the Vertex heats water; one says the whole 50-gallon tank is hot before he's had time to write up the bill for the installation.
The top-of-the-line Vertex model, the 50-gallon A. O. Smith GDHE-50 Vertex 100 (*Est. $1,940) is so efficient -- with a thermal efficiency of 0.96 (wasting only 4 percent of the gas) -- that it qualifies for the 30 percent federal tax credit when installed in the buyer's primary residence. This effectively reduces the price to an estimated $1,358, and the Vertex also qualifies for state "cash for appliances" rebates and other state and local incentives. Nitrous oxide (NOx) emissions, critical in global warming, are limited by a low NOx design, so this water heater also meets Southern California's strict air-quality standards.
The condensing technology should save about 30 percent on gas, and installation is cheaper because PVC pipe can be used for the vent. Another advantage is that the Vertex GDHE-50 heats water so fast that its first-hour-rating (FHR) is a whopping 164 gallons -- about 2.5 times the amount an average water heater provides -- with a flow rate of 4.31 gallons per minute (GPM) when the incoming water is 65 degrees. This model is available in natural-gas or propane versions. The less expensive, 50-gallon A. O. Smith Vertex GPHE-50 (*Est. $1,600) has a lower thermal efficiency of 0.9 and is available only for use with natural gas. It still qualifies for the federal tax credit, lowering the price to an estimated $1,120, and has a FHR of 127 gallons with a flow rate of 3 GPM. Both Vertex water heaters carry a six-year limited warranty on parts.
The main drawback of the Vertex models, aside from purchase price, is that their condensing design requires the installation of a drainpipe. These models use power vents, though, which means the vent can be horizontal through a wall instead of up through the roof, making it easier to replace an electric water heater. The Vertex water heaters can use inexpensive PVC pipe for the vent.
At a more moderate price, you can still get an Energy Star-rated, gas water heater that qualifies for state "cash for appliances" rebates, though not for the federal tax credit. The 50-gallon natural-gas GE Energy Star SG50T12AVG (*Est. $650) carries a 12-year warranty on parts, plus in-home repair for the first year. This water heater has an FHR of 83 gallons and can recover 40.4 gallons an hour. It earns top ranking in owner-written reviews at HomeDepot.com, and the GE solution to sealing the pilot light earns praise from an experienced plumbing contractor at 411plumb.com. With thermal efficiency of only 0.62, this GE water heater isn't nearly as efficient as the Vertex models. Average annual fuel cost is $294, lower than for most 50-gallon, gas water heaters.
As a budget gas water heater, reviews recommend the 40-gallon Rheem FVR NATGAS 22V40F1 (*Est. $260), with a six-year warranty and low-NOx design. At Bestcovery.com, experienced appliance reviewer Mariette Mifflin judges this basic model an excellent buy, noting that it uses a magnesium anode rod to minimize rust and possesses a sturdy brass drain fitting. Owners reviewing it at Amazon.com also give this water heater high marks, citing its easy installation.
The thermal efficiency is low at 0.62, but the average annual operating costs are just $309. Rheem's solution to sealing the pilot light earns top marks at 411plumb.com, and this budget Rheem model is a top-rated water heater at Amazon.com. The FHR is 73 gallons, and the 40-gallon Rheem model can recover 38.4 gallons an hour using natural gas, 32.3 gallons an hour using propane. The similar 50-gallon Rheem 22V50F1 (*Est. $290) provides an FHR of 90 gallons, with recovery rates of 38.4 and 36.4 gallons for natural gas and propane, respectively -- and an average annual fuel cost of $315.
Electric water heaters, as noted earlier, are usually less expensive than gas units but are more costly to operate in most parts of the country. Water is heated more slowly by electricity, too, so to meet your household's peak usage needs you may need to buy an electric water heater with a larger tank. Until recently, this relative inefficiency has kept electric water heaters off the list of Energy Star models eligible for tax credits, rebates and other incentives. Hybrid and heat-pump water heaters, discussed more below, are the exception.
The heat-pump technology incorporated into the GE GeoSpring Hybrid GE H50DNSRSA (*Est. $1,440) gives it the edge over other electric water heaters, especially since the GE Hybrid water heater qualifies for a 30 percent federal tax credit. This brings its price down to an estimated $1,008, and since it's an Energy Star model, it also qualifies for state "cash for appliances" rebates and other state and local incentives that bring the price down even further. See the Heat Pump Water Heaters page for a full discussion of the GE Hybrid.
Until the GE Hybrid water heater came out, reviews recommended the Rheem Marathon models as the best electric water heaters. The Marathon water heaters have a high EF rating of 0.94, and 2.5-inch insulation minimizes heat loss to about 5 percent in 24 hours. Their main advantage, though, is the leak-proof tank that carries a lifetime warranty. The seamless molded polybutane inner tank is supported by a filament-wound fiberglass outer tank. Since the tank isn't vulnerable to rust, the Marathon water heaters also don't need any anode rods -- the "sacrificial" metal rods inserted into most tanks to delay rusting of the tank itself, and a frequent source of repair on most tank-style water heaters.
Still, the 50-gallon Rheem Marathon MSR50245 (*Est. $1,100) ends up costing more than the GE Hybrid after tax credits and state rebates, but the Marathon does qualify for some rebates and low-interest loans from utility companies. The FHR is 61 gallons. (Like most electric water heaters, this FHR is much lower than on even a budget gas water heater.)
The 50-gallon GE SE50M12AAH (*Est. $430) carries a 12-year guarantee plus in-home repair for the first year. Owners reviewing electric water heaters at HomeDepot.com give this model top ranking, with high praise for its ease of installation, energy efficiency and fast recovery rate. It has the standard 0.90 energy efficiency of most electric water heaters, but it uses dual elements (the top one made of stainless steel) to heat water reasonably fast when needed; the FHR is 62 gallons. The average annual cost to run this water heater is $520, more than 2.5 times the cost to run the super-efficient GE Hybrid, but the GE Hybrid has about the same FHR. (Again, a gas water heater provides hot water faster, so it's a better buy in the long run if you can afford the higher initial price and installation costs.)
Another dual-element water heater, the 50-gallon Bradford White M-2-50T6DS (*Est. $360), costs a bit less, but carries only a six-year warranty. As noted earlier, editors at ConsumerReports.org recommend spending a bit more for a water heater with a 12-year warranty if you can, since these appliances typically consist of a higher grade of parts. This Bradford White model is mentioned in a Fine Homebuilding article and the specifications look fine, but we were unable to find any actual tests or reviews of it. Bradford White as a brand gets mostly positive reviews, though, and it ranks higher as a brand than GE in two surveys, one at J. D. Power and Associates and more recently at Builder magazine.
As a budget electric water heater, the 55-gallon Kenmore 32656 (*Est. $290) earns above-average reviews from the handful of owners reviewing it at Sears.com. Owners say it's fairly easy to install and heats water fast. The Energy Guide estimate of annual running costs is $520, the same as for the more expensive GE SE50M12AAH discussed above. The Kenmore 32656 has dual elements and two inches of insulation, with an FHR of 61 gallons. The six-year warranty on the Kenmore doesn't include any labor, though, while the GE warranty covers labor for the first year.
Consumers can buy an extended warranty for a Kenmore water heater, but that adds to the price. Kenmore water heaters are a low-end brand (made by A. O. Smith) and rank toward the bottom in the survey commissioned by the editors of Builder magazine. We found many complaints from owners of similar Kenmore water heaters about premature leaks and breakdowns, even in the more expensive models with 9- and 12-year warranties. Even though the Kenmore 32656 is one of the best rated water heaters at Sears.com, only 75 percent of the owners reviewing it there would recommend it to a friend. As a rock-bottom budget choice, though, this Kenmore fits the bill.
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