Tank Water Heaters

Storage-tank water heaters are cheaper and less costly to install

Storage-tank water heaters are easily the most economical choice in the short term (less than 10 years). For the greatest short-term economy, reviews recommend replacing an existing tank-style water heater with another that uses the same fuel, to minimize installation costs. Your best bet is to decide on the tank size you need, then find the most reliable and energy-efficient tank-style water heater available.

Tank-style water heaters cover a wide range of sizes, but reviews say 40 gallons is about the minimum size tank for two people, with 50 gallons better 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 -- or 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 efficiency often decreases, especially for gas models.

Reviews say the first-hour rate (FHR) is especially important for a tank-style water heater. If the rate of flow out of the tank exceeds the water heater's capacity to heat the cold water flowing in to replace it, the temperature of the tank will start to fall -- putting out first tepid, then cold water. If this is the only problem that makes you consider replacing a water heater, consider installing a point-of-use water heater by a shower or sink that gets a lot of use (see the section on tankless water heaters).

Tank leaks and flooding are the worst 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 (*est. $10).

Most efficient storage water heaters

The electric Rheem Marathon water heaters vary in price more than most, because they're so efficient that many utility companies offer huge rebates and low-cost loans to encourage customers to buy them (although as electric heaters they don't qualify for a federal tax credit). With a high EF rating of 0.94, the Marathon water heaters are distinguished by their leak-proof tanks, made with a seamless molded polybutane inner tank supported by a filament-wound fiberglass outer tank. The tanks carry a lifetime warranty against leakage for the primary owner, but the warranty converts to a 15-year warranty if your home is sold. Since they don't use metal -- and therefore don't need any anode rods, they need less frequent repair. (Other tank-style water heaters eventually give emit a rotten-egg smell that means the anode rod needs replacing.)

The 2.5-inch-thick insulation on the Marathon water heaters minimizes heat loss to about five percent in 24 hours. First-hour ratings for the 50-gallon tanks range from 51 to 61 gallons, depending on the model. The 50-gallon Marathon MSR50245 (*Est. $1,100) for example has an FHR rating of 61 gallons. This is also a good water heater to consider if you need a big tank, since an 85-gallon Marathon water heater doesn't cost much more than a 50-gallon model, and the 0.92 EF rating is only slightly lower.

Among standard metal storage water heaters, Bradford White water heaters have a solid reputation among contractors, based not only on the J.D. Power survey but also on discussions in professional forums. Professionals are well aware of the importance of rapid access to repair parts for water heaters, and owner-written reviews agree. Bradford White water heaters are mainly available through contractors.

Most, but not all the Bradford White electric water heaters have two inches of insulation, including the 50-gallon M2HE50S6DS (*Est. $850), which has an EF rating of 0.93. Based on average electricity rates of $0.091 per kilowatt-hour, however, this model saves only a few dollars a year compared with other models with slightly lower EF ratings of 0.92 or even less. It's really the Bradford White reputation for quality and ease of repair that makes this a good brand to consider.

Gas water heaters typically have less insulation than electric models. Only a few of the Bradford White gas water heaters have two inches of insulation. The EF ratings range from 0.53 (for a big 75-gallon model) up to 0.66 for the 50-gallon Bradford White M2TW50T6FBN (*Est. $1,400) and 65-gallon Bradford White M2TW65T6FBN (*Est. $1,550), both of which use 2-inch-thick insulation. The difference in average annual cost (based on 1.092 per therm) is more significant for the gas water heaters than for the electric models.

The A.O. Smith Conservationist electric water heaters use even thicker 3-inch-thick insulation with an R-value of 24, giving all the models in this series an outstanding EF rating of 0.95. The 50-gallon PXHT 52 (*Est. $1,325) has a first-hour rating of 60 gallons, but the 80-gallon PXHT 80 (*Est. $1,550) heats incoming water more slowly for a FHR of 81 -- just a gallon more than the tank holds. The warranty is for 10 years.

The A.O. Smith ProMax series of electric water heaters is nearly as efficient with an EF rating of 0.93, and the 80-gallon ECRT-80 (*Est. $1,000) has a higher first-hour rating of 87 gallons. This water-heater series uses 2.5-inch-thick insulation with an R value of 20.The 50-gallon ECRT-52 (*Est. $800) has a first-hour rating of 60 gallons.

The Maytag Series 12 water heaters, also made by A.O. Smith, use 3-inch insulation for an EF rating of 0.95 -- like the Conservationist water heaters -- but can be boosted to 5,500 watts if you need higher first-hour ratings. This obviously uses more electricity, but boosts the 50-gallon Maytag HRE112 from a FHR from 61 to 68 gallons -- recommended if the water heater serves four people. The FHR for the 80-gallon HRE112 82T gets a boost from 86 to 92, to serve seven people rather than just five. Prices for Maytag Series 12 water heaters are about the same as what you'll pay for the A.O. Smith versions.

The Maytag Series 12 PC water heaters add a module that allow you to program up to four different temperature settings per day, with a manual override and battery backup. This makes the water heaters even more efficient, since you heat water higher only at the times you specify. This idea gets mixed reviews from contractors, who note that the circuit boards can make quick repairs a problem. Be sure to find out how long it will take to repair these water heaters before choosing one, weighing the possible problem against the savings in electricity.

The gas water heaters in the energy-efficient Maytag Series 12 have significantly higher first-hour ratings compared with the electric models. A PowerVent option reduces the cost of switching from an electric water heater, by venting the gas water heater horizontally through a wall instead of up through the roof. The 50-gallon HRN112 50X has a first-hour rating of 97 -- higher than an 80-gallon electric Maytag Series 12. The EF rating is 0.63, lower than for the electric models, as is the case with all gas water heaters, but it still exceeds the new Energy Star certification requirements that go into effect in 2009. The smaller tank and lower rates for natural gas (in most parts of the country) can still make the gas Maytag a better buy. Both the gas and electric models in the Maytag Series 12 carry 12-year warranties.

Budget storage water heaters

Reviews recommend checking with your own plumber before resorting to buying a water heater at any big box store. As noted earlier, American, Kenmore and Whirlpool water heaters are made by A.O. Smith, to lower standards than the main A.O. Smith brand. Some have impressive specifications and long warranties, but we found many complaints from owners about premature leaks, various breakdowns, and repair nightmares. ConsumerAffairs.org lists many complaints from owners about American Water Heaters, plus over 100 complaints about Whirlpool water heaters that culminated in a class action suit (now settled). Owners rating water heaters at Lowes.com give the Whirlpool water heaters noticeably low ratings for quality.

The 55-gallon electric Kenmore 32656 PowerMiser 6 (*Est. $290) has an EF rating of 0.90, costing about $512 per year to operate at the 2008 average rates of 10.5 cents per kilowatt-hour. A more efficient electric water heater can save about $30 a year at this rate, so it can take a long time to pay back its higher price. You can use an online tool to compare the long term energy costs; see the Useful Links section below.

We found many complaints from owners of similar Kenmore water heaters about premature leaks and breakdowns, even in the more expensive PowerMiser 9 and PowerMiser 12 series. Many owners are distressed to find out that most water heater warranties don't cover labor costs for repairs, only parts. Experts agree that good repair service is the most important thing to keep in mind when comparing water heaters.

The Kenmore gas water heaters also get mixed reviews from owners, with praise for good performance at a reasonable price mixed with bitter complaints about breakdowns, leaks and poor technical support and service. Most of the gas Kenmore water heaters only use an inch of insulation, but the more efficient HydroSense series uses 2 inches, electronic controls that don't need to be wired in, and carries an Energy Star rating. The 50-gallon model, sold as the Sears 33453, 33157 or 33159 (*est. $600) provides a first-hour rate of 90 GPH, nearly three times that of the electric Kenmore discussed above. The EnergyGuide label also estimates the operating costs at less than 60 percent of the electric model.

A 40-gallon Kenmore HydroSense gas water heater, model 33149 (*est. $520) takes up less space and provides a first-hour rate of 67 GPH. Both water heaters carry a 12-year warranty on the tank plus six years on parts and one year on labor. Most owners say they're happy with the HydroSense water heaters, but we found some complaints of early breakdowns, especially on the electronic thermostat. Some owners also warn that Sears' installation costs are high, and that there can be a long wait for repair service, something that will depend on your local Sears store and its affiliated service contractors.