Are you considering upgrading your water heater, but are unsure if you want to spend the extra money on an energy efficient model? If so, you should consider the many benefits of energy efficient water heaters. Not only can they save you money on your monthly energy bills, but they are also better for the environment. In this article, we will explore the many benefits of an energy efficient water heater versus traditional water heaters and explain why you should consider upgrading to one.

Traditional Water Heater vs. Energy Efficient Water Heater: Explained

When it comes to heating water, traditional water heaters have been the go-to option for decades. These heaters, also known as storage tank water heaters, store hot water in a tank and constantly keep it heated, even when it’s not being used. However, these traditional water heaters are not energy efficient and can be costly. They may have a limited hot water supply, but once the tank is empty, you’ll have to wait for it to refill and reheat before you can use hot water again. This can be a problem for households with high hot water demands.

Energy efficient water heaters, on the other hand, are an innovative tool that you can use for your home while using less energy and reducing your carbon emissions. This means they’re more cost-effective and environmentally friendly.

What is an Energy Efficient Water Heater?

An energy efficient water heater is a type of water heater that uses less energy than traditional models. Unlike traditional models, which heat water to a set temperature and keep it there until you manually turn the water off, energy efficient water heaters heat the water only as much as it needs to be heated for your current use. This saves money and reduces emissions.

Unlike traditional water heaters, energy efficient water heaters don’t waste energy. They save you money, conserve resources, and help the environment at the same time.

There are several types of energy efficient water heaters, including tankless water heaters, hybrid water heaters, and heat pump water heaters.

Tankless Water Heaters

Tankless water heaters are more efficient than traditional electric tank-type water heaters because they use less energy to heat water. Tankless water heaters use a variety of methods to heat water without storing it in a tank. These systems include gas-fired or electric elements that heat the water as it is used. This type of system eliminates the need for a storage tank, saving space and money on installation costs. Tankless systems also run more efficiently than traditional storage tank systems because they eliminate waste by only heating the amount of water needed at any given time.

Hybrid Water Heaters

Hybrid electric/gas water heaters combine two different technologies to produce hot water at a low cost while maintaining high-efficiency levels throughout their lifetimes. 

Hybrid heaters combine the best features of tankless and storage-tank models into one unit. They can heat large amounts of hot water quickly when needed, like a storage-tank model, but also can provide a constant flow of hot water like a tankless model. This means you can enjoy an unlimited supply of hot water without having to wait for it to be heated up again after every use like you would with a standard storage-tank model.

Solar Water Heaters

Solar water heaters are becoming increasingly popular in households. They use solar panels to heat the water. Solar panels collect the sun’s energy and convert it into heat, which is then transferred to the water. The benefits of solar water heaters are that they are environmentally friendly, cost-effective, and can be used in all climates.

Condensing Water Heaters

Condensing water heaters are more energy efficient than traditional water heaters. They use a heat exchanger to heat the water and then recover the heat that is typically lost through the vent. The benefits of condensing water heaters are that they are environmentally friendly and can reduce energy costs by up to 30%.

Heat Pump Water Heaters

Heat pump water heaters are typically considered more efficient than other types of energy efficient models because they use electricity to heat your hot water instead of natural gas or propane. This makes them better for the environment because they reduce your carbon footprint from using fossil fuels like oil or gas to generate electricity. Heat pumps are also more efficient than standard electric resistance coils because they don’t lose as much energy through friction during operation, which means you’re getting more bang for your buck when heating your water!

The Many Benefits of Energy Efficient Water Heaters

Now that you know the different types of efficient water heaters in the market, it is time to consider the benefits of using energy efficient water heaters. Here are some of the top reasons why you should go for an energy efficient water heater:

Lower Energy Bills

Energy efficient water heaters help you save on energy bills. They use less energy to heat the same amount of water, which means you can save money by reducing your energy consumption. This means that you can expect to see a reduction in your monthly energy bills, which can add up to significant savings over time. If this sounds good to you, then an energy efficient water heater might be just what you need.

Reduced Environmental Impact

Not only can energy efficient water heaters help you save up on your monthly electricity bills, but they can also reduce your environmental impact. This is because an energy efficient water heater uses as little as half of the energy used by a traditional model. This means that fewer fossil fuels are being burned and fewer greenhouse gases are being emitted into the atmosphere. With an energy efficient water heater, you’re using less natural resources and creating less pollution. This is especially important for those who live in more rural areas where electricity is generated from coal-fired power plants.

Longer Lifespan

Another benefit of energy efficient water heaters is that they typically have a longer lifespan than traditional water heaters. The main reason for this is that energy efficient water heaters use less energy to heat the same amount of water, which means they don’t have to work as hard and therefore last longer. Because they are designed to be more efficient, they experience less wear and tear over time.

A traditional electric water heater can last anywhere from 6 to 10 years, while an energy efficient model can last up to 15 years. This means that you will save money in the long run because you won’t need to replace your water heater as often. Because of this, your energy costs will be lower and you’ll also save money on maintenance. 

Consistent Hot Water

Energy efficient water heaters can also provide more consistent hot water than traditional water heaters. In an energy efficient water heater, the burner will turn on when you turn on your faucet and will continue to stay on as long as you have hot water running through the pipes, ensuring that you never run out of hot water. This is because their systems use less energy to heat the same amount of water, so they’re able to maintain a steady temperature. These systems are also able to keep your house at a constant temperature, which means the water will be hotter when you need it.

Improved Home Value

Energy efficient appliances, including water heaters, can improve the value of your home. Buyers are often willing to pay more for homes with energy efficient appliances, which can make your home more attractive to potential buyers.

Tax Credits and Rebates

In many cases, energy efficient water heaters are eligible for tax credits and rebates from the government. This can be a huge incentive to invest in an energy efficient water heater. For example, if you live in California, you may be eligible to receive up to $200 in rebates on certain energy efficient water heaters that meet government standards. This can be a huge incentive to invest in an energy efficient water heater. It can also help offset the cost of replacing a water heater altogether. 

However, the amount of money you can save depends on the type of water heater you purchase and where you live, but it could be quite substantial. The best way to find out if you qualify for a rebate or tax credit is by contacting your local utility company or your state’s energy office.

How to Choose the Right Energy Efficient Water Heater?

Choosing the right water heater for your home is an important decision that can have a significant impact on your energy bill and overall comfort. Here are some factors to consider when choosing an energy efficient water heater:

Type of Water Heater

There are several types of energy efficient water heaters, including tankless, heat pumps, and solar water heaters that we’ve discussed above. Each type has its advantages and disadvantages, so it’s essential to choose the one that best suits your needs.

Size of Water Heater

The size of the water heater you choose will depend on your household’s hot water needs. You want to make sure you choose a water heater that is the right size for your household. A water heater that is too small won’t provide enough hot water, while a water heater that is too large will consume too much energy. It’s important to choose a unit that can provide enough hot water for your family without wasting energy.

Energy Efficiency Ratings

Energy efficient water heaters are rated by their energy efficiency factor (EF). The higher the EF, the more energy efficient the unit is. When choosing an energy-efficient water heater, you want to look for the Energy Star label. The Energy Star label indicates that the water heater meets certain energy efficiency guidelines set by the Environmental Protection Agency.


Energy efficient water heaters can be more expensive than traditional water heaters, but they can also save you money in the long run. The amount you can save with an energy efficient water heater will depend on several factors, including the type of water heater you choose and your hot water usage. However, on average, energy efficient water heaters can save you up to 30% on your water heating bills. Thus, it’s important to consider the upfront cost of the unit and the long-term savings when making your decision.

Brand Reputation

The brand reputation of the water heater is also an important factor to consider. Choose a water heater from a reputable brand with a proven track record of quality and reliability. This will ensure that you get a water heater that is built to last and will provide you with reliable hot water for years to come.

Installation Requirements

Some types of energy efficient water heaters, such as solar water heaters, may require additional installation requirements. In most cases, energy efficient water heaters can be used with existing plumbing. However, some types of units may require additional plumbing or electrical work, so it’s important to check the installation requirements before purchasing a unit.


The warranty is an important factor to consider when choosing a water heater. A good warranty can provide peace of mind and protect you from unexpected repairs or replacements. Make sure to read the warranty carefully to understand what is covered and for how long.


Finally, you want to consider the maintenance requirements of the water heater. Some types of water heaters require more maintenance than others, so it’s essential to choose a water heater that fits your maintenance schedule.

By considering these factors, you can choose the right water heater for your home that meets your needs and provides the comfort and efficiency you desire.

The Verdict

Energy efficient water heaters are a great option for those looking to save money on their energy bills and reduce their environmental impact. With several types of energy efficient water heaters to choose from, it’s essential to consider factors such as the type and size of the unit, energy efficiency ratings, cost, and installation requirements when making your decision. By choosing an energy efficient water heater, you can enjoy consistent hot water while reducing your energy consumption and saving money on your utility bills.

If you need a water heater installation service in Mesa, don’t hesitate to contact Plumbing Bear today. We look forward to working with you soon!