To better understand the importance of water heaters for any home in Canada, we need to start explaining how they work. A water heater is an equipment with different sizes and standards responsible for supplying hot water in multiple rooms, including the kitchen and washrooms, and every time you need it, from cooking to taking a shower.
In Canada, according to Governmental stats, water heaters account for 17.2% of the energy used in the average Canadian home and 5.7% of the energy used in the average commercial or institutional setting. Therefore, analyzing features and using necessity (supply) to guarantee energy efficiency will help with energy savings and, consequentially, utility bills.
Should you buy a water heater? It will depend on what you are looking for since it is possible to rent it. Although this option seems affordable, especially considering that buying a water heater requires a higher upfront investment, in the long term, the monthly rental payments might surpass the buying costs.
Regarding prices, a traditional electric tank (40 to 60 gallons) would be around $500 to $1,000, while the price of a natural gas tank is $800 to $1,400. High-efficiency versions cost around $1,500 to $2,000. On the more expensive side, the tankless water heater option can cost from $600 to $900, while a natural gas version is approximately $1,600 to $2,500. For renting, the average water heater can cost from $20 to $60 per month depending on the company and selected water heater.
Before making the final decision, it is also important to remember the pros and cons of both scenarios. On the one hand, the water heater owner has responsibilities, such as maintenance costs (repairs, replacements) and upfront investment. On the other hand, renting typically includes maintenance coverage. Therefore, our tip is to consider the usage period. Do you need a water heater for a temporary place? If so, renting will be a smarter decision. Is it for your own house? Then investing will make you spend right away when buying and installing, but saving in the long term as a high-quality water heater can last up to 15 years – the usage period is one of the main points to evaluate payback times.
Another point to highlight is the energy efficiency. According to the water heater guide issued by the Government of Canada, hot water use is the second largest portion of energy utility costs, after home heating. Here is the graphic:
Water heating represents a relevant amount, from 15 to 25 percent of the household energy bill. Still, according to the water heater guide that we mentioned earlier, the energy factor (EF) is used to rate the efficiency of gas-fired (natural gas) or oil-fired water heaters. It is the amount of energy supplied as hot water divided by the total amount of energy used by the water heater over a 24-hour (hr) period. The EF is determined assuming a standard hot water use profile with fixed inlet and outlet water temperatures. The calculations account for standby losses and the operating efficiency of the water heater when it is heating water (recovery efficiency). In summary, higher EF indicates higher efficiency.
If after all these points, your final choice is investing in a water heater, there are some main options on the market, such as tank-type, hybrid, tank-less, solar water heater, and point-of-use.
- Ideal for big families and houses, tank-type (storage tank or tank-style) heaters are the most popular in Canada and use gas or electricity to heat water (and keep it constantly hot) with a heating source located at the bottom of the tank. The tank type usually cost between $300 and $1,500. Pros: affordable, water pressure and flow rate, easy installation budget-friendly option, simple maintenance. Cons: Limited supply of hot water, energy waste – since the tank stays constantly full of hot water.
- The tankless water heaters type, instead of storing and heating water in anticipation generates warm water in demand – that is why is indicated for small spaces. Although energy efficient (which provides lower utility bills), it is pricier and can cost from $1,000 to $3,000 or even more depending on the potency – the purchase must consider the hot water demand. In the long term, it can be a worthy investment. Pros: Efficient, energy saving, environment friendly. Cons: Limited flow rate, higher cost, laborious installation. During power outages, as they need electricity, you won’t be able to have hot water.
- A Hybrid model (or heat pump) is an effective option for those who have a high hot water demand at home. Versatile, this appliance can directly generate electricity to heat the water inside the and can also use a heat pump mechanism to switch the water temperature to the hot air (it pulls in warm air to extract the heat to warm the water, and expel the cold air). Pros: Energy efficient, money saving. Cons: Unit cost, installation cost, require at least 1000 cubic feet of space for installation, noisy.
- Ideal for small apartments, cottages, garages, and mobile homes, point-of-use heaters (POU) are often installed in small spaces. The units come in different sizes and types to better fit each necessity, such as electric (most common), gas, and tankless models. An important piece of information to highlight is that gas-powered appliances are more powerful and can consequentially serve larger spaces. However, it requires venting. Pros: Affordable, easy to install, compact, energy-efficient, deliver hot water quickly. Cons: Inefficient for constant use, not ideal for large places.
- Effective for houses situated in sunny cities, the Solar water heater has two types: active and passive, which work differently and also require distinct equipment. While active solar water heaters are pricey and use circulating pumps and controls to move water, passive solar waters are more dependable, and count on the sun’s heat to circulate water. Besides being affordable, this option can last longer than active systems. Pros: Eco-friendly, energy efficient, versatile. Cons: Installation, pricey.
- Common in households that don’t have access to a natural gas, propane, or oil line, the electric water heater, as the name suggests uses electricity to heat water initially from the center of the tank. In summary, the water passes through hot spirals and absorbs the heat to reach the right temperature before being distributed according to the place demand. Pros: Safe, efficient, affordable. Cons: Slower to heat, longer recovery times, higher utility bills.
- Last, but not least, gas water heaters are viable for those who have natural gas to use at home (small, medium, or large ones), the gas water heater tends to be cheaper to run than electric heaters, and is a tank that heats water from a gas-fired burner located at the bottom of the tank. Besides quickly heating the water, it operates during power failures since is powered by gas. Pros: Fast heating, energy efficiency, lower utility bills. Cons: Less safe than electric types, smaller range of size on the market, Lower operating costs than with electric models.
How to reduce energy bills after installing a water heater?
- Reducing the amount of hot water that you and your family use at home;
- Improving the performance of your water heater by adjusting the thermostat to around 120°F (49°C).
- Fixing leaks that may exist.
- By checking its pressure.
- Electric models tend to be cheaper upfront but cost more over time due to higher electricity bills.
- Installing a drain water heat recovery (DWHR) device to reduce your water heating load. That is a simple technology to save on energy used to heat water.
Taking into consideration everything we said at this point, in summary, before purchasing or renting a water heater you must:
- Analyze the appliance and your demand. A capacity higher than what is needed can cost more to operate (and be pricier).
- Research to determine the best options on the market according to what is available considering the house features.
- For long or short term? Knowing this answer you can decide whether it is worth renting or buying a water heater.
- Compare efficiency ratings.
- Ensure that heat traps and pipe insulation are installed. Where practical, locate the water heater as close to the major uses as possible.
- Check the warranty and brand reputation.
- What type of fuel source do you have?
