An Energy-Efficient Water Heater Can Save Major Cash

energy-efficient water heater

Replacing your water heater can provide long-term value in the form of money and energy savings. But you don’t have to wait until your current water heater fails. By simply switching to a new energy-efficient water heater or a new energy source, like propane, you could save hundreds of dollars each year.

When selecting your next water heater, it’s important to look at the annual cost of ownership. This is the cost of original equipment, installation, and annual energy costs. Propane-powered, high-efficiency storage tank and tankless water heater models deliver lower annual ownership costs than electric or heating oil models in most parts of the country.

They can also help your carbon footprint. According to the Propane Education & Research Council, standard electric storage tank water heaters produce two times greater emissions than tankless units running on propane. The difference amounts to about 1,300 lbs. of CO2 a year. That’s equivalent to the emissions produced driving a car more than 18,000 miles.

In addition to costing less to operate, using less energy and having lower CO2 emissions, propane-powered water heaters can even save floor space compared with electric systems. New federal energy standards mean tank sizes are increasing, particularly for electric water heaters. Standard efficiency tanks for electric storage water heaters are now wider, taller, and heavier, and might not fit in the same space.

You’ve learned that propane water heaters perform better than electric models in every category that matters. But which type of propane water heater is best for your home – tank or tankless?

Propane-powered storage tank water heaters are smaller than electric tanks with the same capacity; are Energy Star qualified; save you 13 to 16 percent in annual energy costs; and have lower CO2 emissions than electric units.

Wondering when to pull the plug on your current water heater? Take the five-question quiz at to find out if it’s time to shop for a newer, more efficient model.

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