When selecting a new water heater for your home, choose a water heating system that provides enough hot water for your family and is also  energy efficient to save you money. Consider the different types of water heaters available and determining the right size and fuel source for your home. Check out Energy.gov’s “the Energy Saver 101: Water Heating infographic” to learn more about the different types of water heaters and how to select the right model for your home.

What type of water heater do I buy?

It’s a good idea to know the different types of water heaters available before you purchase one:

• Conventional storage water heaters offer a ready reservoir (storage tank) of hot water which is adequate for everyday use. However, there are some instances, such as when more than one use for hot water is occurring or when there are guests in the home, increasing the requirements for hot water.
• Tankless or demand-type water heaters heat water directly without the use of a storage tank. This type of water heater is designed to provide an adequate supply of hot water without running out when adequately sized.
• Heat pump water heaters move heat from one place to another instead of generating heat directly for providing hot water, resulting in high efficiencies and significant cost savings.
• Solar water heaters use the sun’s heat to provide hot water and also save money on energy bills.
• Tankless coil and indirect water heaters use a home’s space heating system to heat water.

Selection Criteria

When selecting the best type and model of water heater for your home, consider the following:

• Fuel type, availability and cost. The fuel type or energy source you use for water heating will not only affect the water heater’s annual operation costs but also its size and energy efficiency. See below for more on selecting fuel types.
• Size. To provide your household with adequate hot water and maximize efficiency, you need a properly sized water heater. Visit the pages on different types of water heaters (linked above) for more on sizing.
• Energy efficiency. To maximize energy and cost savings, check the energy efficiency of a water heater before you purchase it. Visit the pages on different types of water heaters (linked above) for more on estimating energy efficiency.
• Costs. Before you purchase a water heater, it’s also a good idea to estimate the annual operating costs and compare those costs with other less or more energy-efficient models. Visit the pages on different types of water heaters (linked above) for more on estimating costs.

Also be sure to examine ways to reduce your hot water use, such as washing clothes in cold water. You may also want to explore other options such as drain-water heat recovery to save money on your water heating bill.