Electric, Gas or Propane: How to Choose the Right Water Heater

The gas-powered water heater has a higher initial cost than the electric models, but uses less energy to operate on a regular basis.

Installation can be slightly more difficult if the original tank was an electric model, as new gas fuel lines and venting to the outside are needed.

Another great benefit is that the gas-powered hot water tank will continue to work during power outages. When selecting this model and installing it yourself, make sure to purchase a sealed combustion or power venting model to increase safety.

Propane-powered hot water heaters are still available, but are less frequently purchased. It is as efficient as a gas-powered model and may be useful to the homeowner who wants greater energy efficiency than electric models, but does not have gas lines available to the home.

Also called "on-demand" and "instantaneous", the tankless hot water heater hangs on the wall to free up space. It functions by passing cold water through a series of coils to heat it before it is delivered through pipes to each point of use. The initial cost for a tankless model is higher than a storage tank model. It occupies little space and uses approximately 30% less energy than storage tank models. If hot water is typically needed at more than two points at a time, this model may not be the best option.

Tankless heaters are either electric- or gas-fuelled and are rated in terms of how much water is heated per minute. Most tankless models designed for residential use deliver 3.5 gallons of heated water per minute (gpm). Tankless heaters are selected according to the flow rate needed to satisfy the water supply for a specific home as opposed to the appropriate gallon size with storage tank models.

• Point-of-use hot water tanks

  are quite small and deliver hot water to a specific location within the home, sometimes a remote location, rather than to the whole house. They are installed directly under the sink or in a closet and sizes range between 2.5 to 19 gallons.

• Hybrid electric water heaters

  are designed to optimize energy efficiency. They are much taller than a standard unit. Research the energy savings data because a natural gas-fuelled storage tank may use approximately the same amount of energy.

• Extreme green water heaters

  can be heat pump water heaters, geothermal heat pump water heaters, and solar water heaters. They can save between 50-80% of energy cost. Consult a green energy expert and a design professional to verify if the desired system is suitable for your home. There are many situations where the high cost and effort to install it are not worth it.

• Integrated systems

  use a single heater fed by an external storage tank. These systems are set up such that a heating fuel source is used both to heat water and the surrounding air at the same time. The drawback for these systems is that the heat used for water will continue to spill out into the home year round even during summer months.