If you are building a new home, or if you want to convert your existing hot water heater to another type of system, begin by considering these few points.

Cost and Availability of Fuel Types

It may be wise to convert your current water heater to a more efficient system. Compare energy saved to the costs of purchase and conversion. While the initial installation may appear expensive, the lifespan of a different type of water heater may add up to substantial savings for you.

On the other hand, it may be easier to just buy a replacement that uses the same type of fuel as your old heater. This will preempt any needs to install new wiring, invest in a new fuel source or worry about any other updates to accommodate the new machine.

Capacity

Is it time to upscale or downscale? Families and households are constantly in flux, so consider how much hot water you really need to keep your family comfortable.

Energy Efficiency

You may be heating up too much water. Consult water heater sales representative to determine the most energy-efficient size for your home. 

There are many quality variations of heaters that can meet your energy needs. The most common are:

1. Conventional Storage Water Heater - Water is prepared and stored in a tank, ready to be used when needed. Possible energy sources include natural gas, propane, fuel oil and electricity. Though efficient, this system can create what is known as 'standby heat loss' when hot water is not used frequently enough.

2. Demand Water Heaters - These systems require no hot water tank since they supply instantly heated water when needed. They are powered by gas or electricity. Though it doesn't require any waiting, this system has limited heating capacity. When water is needed at multiple sources—for example, 2 or more showers running at the same time—it will limit the warm water availability.  High-traffic homes will need to buy more than one.

3. Heat Pump Water Heaters - These systems are designed to retrofit a conventional storage heater to your existing heat pump. This system can be 2 to 3 times more energy-efficient then directly linking to an independent energy source. This system works best when the average outside temperature is between 40 to 90 degrees Fahrenheit.

4. Solar Water Heaters - With the energy source (sun) being totally free, this system wins the award for most energy-efficient. It requires solar tanks and solar collectors, and while energy can be stored, variations in the power source (i.e. cloudy days) may reduce the quality and quantity of the hot