Traditional water heaters are huge and require a lot of either gas or electricity to keep all of that water warm.
Are smaller water heaters more efficient.
For example an electric heat pump water heater typically is more energy efficient than an electric conventional storage water heater.
They heat water whether you need it or not.
For homes that use 41 gallons or less of hot water daily demand water heaters can be 24 34 more energy efficient than conventional storage tank water heaters.
They use that energy even when you aren t using the hot water.
The type of water heater you choose will also affect your water heating costs.
Traditional water heaters have a built in inefficiency.
They can be 8 14 more energy efficient for homes that use a lot of hot water around 86 gallons per day.
While tankless water heaters run more efficiently than storage tank water heaters replacing a tank water heater with a tankless can be expensive and the payback time can be longer than the warranty.
Your best strategy will depend on whether your water heater is fueled by gas electricity or oil.
While new storage water heaters are more efficient they have had to grow in size.
Naeca or the national appliance energy conservation act regulates the energy consumption of certain major household appliances.
One type of water heater may use a fuel type more efficiently than another type of water heater.