How Americans are Saving Over 30% on Water Heating Costs, According to Energy.gov
For the average American, saving money on fixed monthly costs is one of the most critical tasks in managing the household budget. With the cost of everything on the rise, small ways to save money add up to a big difference in your standard of living. In addition to expenses, we are becoming more aware of our energy consumption and carbon footprint; conserving energy is becoming an important way to curb greenhouse gas emissions.
According to the Economist, coal power still accounts for 30% of all energy production in the United States, so much of that electricity in your home is most likely powered by coal which is a huge contributor to greenhouse emissions.
One way to both conserve energy and save money is by making the switch from a traditional hot water tank to a tankless water heater.
Standard hot water tanks are inefficient – they keep a large, fixed amount of water hot at all times. As the idle water cools, energy is constantly being spent to keep that water at a fixed, high temperature. Tankless water heaters, on the other hand, only heat water on-demand, resulting in significant energy savings. In addition, most households are renting hot water tanks from their utility company, resulting in not only increased energy costs but increased rental costs.
According to the United States Department of Energy, switching to a tankless water heater from a hot water tank will directly result in an average of 37% savings on energy costs. But depending on how old your water tank is, the savings can be upwards of 50%.
Since most of us are heating water in tanks using either electricity or natural gas, the emissions we reduce is significant by making switching to on-demand. The downfall of course is a tankless water heater can be expensive both to purchase and to install and will take some time before the investment pays for itself.
More Savings with Tax Credits
In addition to the monthly rental cost and energy cost savings, you can also save money on your annual taxes in the form of tax credits with tankless water heating. Various states have their own tax credits and you should discuss them with your tax advisor to see if you’re eligible.
Energy.gov keeps a list of state tax credits that are available depending on the type of energy saving investments you are making in your home. Some of these tax credits are one-time credits to aid with the up-front investment in the water heater; others are recurring tax credits for your ongoing saving of energy.
Tankless water heating is a great switch to make to boost the energy efficiency of your home. Over the last decade, the technology has improved leaps and bounds and is now capable of handling nearly any demand that a regular household can produce. Making the switch from a hot water tank to a tankless water heater will not only save you money, it also saves our environment. Contact your local plumbing professional to discuss options and get installation cost estimates.
How to pick the right tankless water heater
Tankless water heaters come in a variety of sizes, power sources, ventilation requirements and maximum flow rates. The most important consideration before buying is the incoming water temperature to your home, especially in northern parts of the United States that have colder winters.
Most tankless water heaters are rated by their ability to raise the temperature of water and maintain a consistent flow rate, measured in gallons per minute. Generally speaking, the lower the incoming water temperature, the lower the flow rate of your tankless water heater. This can be offset by a larger BTU rating of the unit.
It can be a complicated choice picking the right tankless water heater, we’d recommend reading this buyer’s guide on tankless water heaters to learn more about the options available in the market today.
If you live in an area with cold winters, you’ll want to opt for a large, natural gas powered tankless water heater that is capable of outputting over 7.5 GPM of hot water. At this time, electric tankless water heaters can’t raise water temperature over 50F at a flow rate of 3.0 GPM which is the minimum you’d need to run a shower, for example.
For southern states, electric tankless water heaters are usually the best bet, although you’ll need to install several of them to power an entire house. Since you’ll rarely need to raise the temperature more than 30ºF, electric tankless water heaters have more than enough power to provide sufficient hot water to your household. In combination with the abundant amount of sun, you can even power your electric water heaters entirely with solar power, which is even further reducing your carbon footprint.
This post was sponsored by iWaterPurification.com