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If all is working well, most homeowners put little thought into their water heater. But when this critical appliance fails, it can be a nightmare that halts a home’s productivity completely.

Don’t wait until an emergency occurs to take action; make updates before the life expectancy of the current heater ends. Newer units have better efficiency and lower operating costs if you choose the right one for your home. After all, heating water is the second largest energy drain in a home. Here are the three main types of water heaters.

Traditional tank models

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Most homeowners have a traditional tank water heater where heated water is held in a tank throughout the day, providing hot water to the home when there’s a demand. If you already have the space, you may select a modern tank heater to replace the old one. The good news is today’s tank heaters are more efficient than ever, providing more hot water while using less energy.

For example, the Rheem XR90 gas water heater can be retrofitted into an existing tank area, but takes up less space because it’s a 29-gallon tank. It provides 90 gallons of hot water in the first hour following the heater’s initial firing; so, homeowners get three times the amount of hot water in an hour than what the tank actually holds.

Hybrid tank units

Hybrid water heaters are more than twice as efficient as standard electric units. Consumers who switch to a hybrid electric water heater with heat pump technology will save $286 annually on their electric utility bills, compared to those who have a standard 50-gallon electric model (with a 0.90 energy factor), according to U.S. Department of Energy estimates. Heat pump technology can vary between each heat pump manufacturer but they always help conserve energy and reduce utility bills.

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These tanks are set up with a heat pump as well as electric technology. Depending on the demand put on the system, the homeowner can select the most energy efficient means to heat water.

Tankless options

Tankless water heaters have been used for more than 50 years in other countries and are becoming more popular in the United States. A tankless heater uses energy to heat water only as it is needed, so energy is used efficiently and utility costs may decrease. Plus, tankless water heaters can provide a steady stream of hot water that doesn’t run out.

These types of water heaters are about the size of a medicine cabinet and are hung on an interior or exterior wall, perfect for homeowners with limited space. Most tankless water heaters are gas fueled, such as the popular Rheem Prestige Series Condensing Tankless Water Heater. This model is easy to install..

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This article is courtesy of Brandpoint.