Cost Savings Between Tankless Hot Water Heaters and Traditional
Water Heaters
Water heating accounts for 20% of energy use in American homes.
If we all replaced wasteful tank heaters with high-efficiency
tankless hot water heaters, we could annually save hundreds of
millions of dollars.
Tankless Water Cost Savings:
- 290 million gallons of fuel oil a year
- 164 million gallons of propane
- 6 billion hours of kilowatt electricity
U.S. Department of Energy Efficiency and Renewable Energy
estimate a household’s tankless water heater cost savings at 20% of
its annual water heating cost. Since water heating is the
second-largest energy expenditure in most households, this is a
significant savings, and could quickly pay the cost of an energy
efficient water heater.
Why heat water that is not being used?
Most energy-saving tips, such as are seen in the Consumer Reports
tankless water heater review, suggest insulating storage water
heaters to conserve energy-but even the best-insulated tanks will
constantly reheat the same unused water. Far more cost-effective is
the tankless system, which heats water only while you use it.
Everyone should, for both economic and environmental reasons,
look for ways to save energy. An energy efficient water heater is
one of the best ways to save energy in the home, as indicated in a
Consumer Reports tankless water heater review.
Save Energy & Money
Choose a water heater that will be "ON" only when hot water is
needed.
*The above charts represent approximate energy savings figures based
on the U.S. Dept. of Energy test method for hot water heaters. The
energy costs used are the 2006 averages as published by DOE -
$1.42/therm of natural gas, $1.95 per gallon for propane (LP).
Annual Savings1 - Compared to a new 40 gallon tank water
heater.
Annual Savings2 - Compared to a new 75 gallon tank water
heater.
Note: the annual operating cost of operating a tankless water heater will remain
constant for its 20+ year lifetime, whereas that of a tank water heater will
increase as its efficiency decreases over time.
*The above chart represent approximate energy savings figures based
on the U.S. Dept. of Energy test method for hot water heaters. The
energy costs used are the 2006 averages as published by DOE -
$0.098/kWh
Annual Savings1 - Compared to a new 50 gallon
tank water heater.
Annual Savings2 - Compared to a new 80 gallon tank water
heater.
Note: the annual operating cost of operating a tankless water heater will
remain constant for its lifetime, whereas that of a tank water heater will
increase as its efficiency decreases over time. Buying Guide For
Tankless Water Heaters
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