Where is your Energy Going?

Cut Costs with an Energy-Efficient Water Heater

Water heating accounts for the second-largest consumption of energy after heating and air conditioning in most American households, eating up as much as 25 percent of a typical family’s annual energy budget. Installing a more efficient water heater can save your family money while simultaneously reducing your energy consumption and carbon dioxide emissions.

Home water heaters are powered by natural gas, propane, oil or electricity. Conventional storage heaters hold 20 to 80 gallons of hot water and are the most common type found in American residences, according to the U.S. Department of Energy. Because the water is constantly heated, energy is lost through the flue and tank walls when water is not being used. Tankless water heaters waste less energy, as they provide hot water only on demand, but they account for a small percentage of the residential market and typically can support just a single Appliance at a time. One tankless heater probably won’t be enough to power a shower on the second floor and a load of laundry downstairs simultaneously.

“The conventional natural gas models are usually about 75–78 percent efficient, so that means roughly 25 percent of the energy is wasted,” explains David Chisolm, brand manager, A.O. Smith. “Tankless models are 80–82 percent efficient, so they still typically waste 20 percent. The perception is that because they are not storing energy, they aren’t wasting energy, but that’s not the true measure of efficiency. It’s how efficiently does it take heat from a flame and put that heat into the water.”

A.O. Smith’s line of Vertex water heaters, developed in conjunction with the U.S. Department of Energy, offer up to 96 percent thermal efficiency. “You save money and energy on your natural gas bill, and you don’t have to alter your life around your water heater, since Vertex heaters can handle multiple appliances,” says Chisolm.

Conventional gas models use a vertical chimney or flue, but Vertex products have a 30-foot coil bent throughout the tank. The increased surface area improves efficiency. Other options include solar-powered heaters, heat pump heaters and inte- grated systems, which can be linked to a furnace or boiler and also only heat water upon demand.

Most water heater purchases are replacement buys, and consumers far too often fail to realize that they have options. “If the water heater fails, the typical response is ‘I had a 40-gallon gas water heater, I need a new 40-gallon gas water heater. ’ Consumers forget there are better-performing, more energy- efficient choices,” explains Chisolm.

Homeowners should consider space constraints—tankless models are typically smaller—and their family’s water usage when shopping for a new water heater. Then they can concentrate on finding the most efficient product so they can cut costs and reduce wasted energy. Regardless of which type they choose, individuals can reduce their carbon footprint by simply lowering the temperature of their heater.

There are approximately 100 million water heaters in the U.S.—that’s 100 million chances to reduce our nation’s electricity consumption and Carbon dioxide emissions while saving consumers money.