Most Common Types of Water Heater Replacement Options
Your water heater works hard every day, accounting for nearly 20% of your home’s energy use—second only to your HVAC system! Because it can account for up to a fifth of your energy bill, understanding your water heater options can help you strike a balance between comfort, efficiency, and long-term energy costs.
Whether repairing or replacing your current unit, knowing your water heater options can help you balance comfort and efficiency:
- Tanked Water Heater – Also called “storage tank water heaters,” tanked water heaters are the most common systems in homes over 10 years old. These systems heat and store water in a large tank, cycling it regularly to keep the water hot—even when no hot water is being used. The constant energy use adds up, resulting in higher energy costs. While tanked units are often more affordable upfront, they’re lower efficiency is reflected in your utility bill.
- Tankless Water Heater – Unlike tanked systems, tankless systems don’t store hot water in a tank. Instead, these systems heat water on demand. As a result, these systems occupy less space and are more energy-efficient. Tankless water heater installation costs are typically higher (especially in retrofits), you’ll see energy savings.
- Heat Pump (Hybrid) Water Heater – These water heaters use electricity to move heat from the air into the water, offering energy savings of up to 70% compared to standard electric models (EnergyStar). These systems are best suited for homes with adequate space and mild climates.
Choosing the Right Water Heater Replacement for Your Home
Common Replacement Choices: Like-for-Like Swaps
Most homeowners replace their old water heater with a similar model powered by the same fuel source—either natural gas or electricity. This is often the easiest and most cost-effective option.
When to Consider Switching to Tankless
If you’re building a new home or undertaking a major renovation, switching to a tankless water heater may be a worthwhile consideration. Tankless systems provide on-demand hot water and can offer long-term energy savings.
Upfront Costs: Water Heater Replacement and Installation
Switching from an existing tanked water heater to a tankless system usually requires plumbing and electrical upgrades, which can increase upfront costs. However, these may be offset over time by energy savings and convenience.
Performance Testing: Tanked vs. Tankless
In performance tests, Consumer Reports evaluated tanked and tankless models from major brands like Bosch, Navien, Noritz, and Rheem, based on real-world usage of roughly 84 gallons per day. (Maintenance and installation costs were factored into the overall value.)
Key Findings:
Tankless water heaters had a longer payback period when replacing a storage tank system.
New construction projects showed better ROI with tankless systems due to lower retrofit costs.
Overall, tankless water heaters offer long-term benefits that are more cost-effective in new construction, while traditional tank systems remain a practical choice for straightforward replacements.
Making the Right Choice for Your Home
Choosing the right water heater depends on your home’s layout, your hot water needs, and how long you plan to stay—so it’s worth weighing both immediate and long-term benefits before deciding.
Sizing Your Water Heater Replacement
- Tanked Water Heaters: Look at the first-hour rating (FHR)—how many gallons of hot water the unit can deliver in one hour. A plumber can help calculate the right FHR for your household size and water usage habits.
- Tankless Water Heaters: Pay attention to gallons per minute (GPM). Larger families or homes with multiple bathrooms will need a higher GPM to meet demand during peak usage.
Expert plumbers can help determine the right size for your water heater replacement or installation, to ensure that it is the perfect fit for your household’s needs.
Important Water Heater Features to Consider
Warranty
Most water heater warranties range from 3 to 12 years. Longer warranties often mean higher-quality components, such as thicker insulation and more durable heating elements. A longer warranty is generally worth the slightly higher upfront cost.
Anti-Scaling Devices
Some models include features that reduce mineral buildup inside the tank. While helpful, they aren’t essential if you choose a well-built model with a strong warranty and keep up regular, routine maintenance.
Digital Displays
Modern water heaters often include digital controls to help monitor usage and adjust settings. Some hybrid models include vacation modes to boost efficiency while you’re away.
Tanked Vs. Tankless: Hard Water Impact
Choosing the right water heater for your home is just the first step of your water heater replacement or installation. To keep your system running efficiently and extend its lifespan, regular maintenance is essential. Maintenance needs vary depending on whether you have a traditional tanked water heater or a modern tankless model.
Before diving into the specific maintenance requirements for each type, it’s essential to understand howlocal water quality—in particular, hard water—can impact your water heater’s performance and care needs.
What Is Hard Water?
Hard water contains high levels of dissolved minerals—mainly calcium and magnesium. These minerals leave behind residue known as scale, which can collect inside plumbing fixtures and appliances. Over time, scale buildup reduces efficiency and shortens the lifespan of water-using systems.
Hard Water Levels in St. Paul, Minnesota
In St. Paul, water hardness averages around 5.7 grains per gallon (gpg), which classifies it as moderately hard. This means homeowners in the area are more likely to experience issues with scale buildup, especially in water heaters.
How Hard Water Affects Water Heaters
As water heats, minerals settle out and collect inside the system.
- Tanked water heaters: sediment typically gathers at the bottom of the tank. It can lead to rumbling noises, reduced capacity, and increased energy usage. Over time, it may even cause the tank to overheat or fail.
- Tankless water heaters: scale tends to form on the heating elements or inside the heat exchanger. This buildup can restrict water flow, trigger error codes, or reduce heating efficiency.
Tanked vs. Tankless: Water Heater Maintenance Needs
Water Heater Maintenance Schedule
- Tanked water heaters: To combat sediment buildup, tanked water heaters should be flushed once a year. This involves draining the tank to clear out mineral deposits and keep performance levels consistent.
- Tankless water heaters: These systems are recommended for annual flushing with a descaling solution, especially in areas with hard water. This process—sometimes called “de-liming”—helps prevent scale from damaging the heat exchanger.
Protect Your Water Heater Replacement with a Water Softener
For homes with hard water (such as in areas like St. Paul), installing a whole-home water softener can reduce maintenance needs and extend the life of both tanked and tankless systems.
Professional Water Heater Services
At McQuillan Bros, we offer the best water heater service in Twin Cities and beyond. We’ve been proudly serving the homeowners and business owners of Minnesota since 1883. Our McQuillan team is ready to help with all your water heater replacement, installation, and maintenance needs. Whether you’re ready to upgrade to a more efficient system or need a reliable estimate, our knowledgeable team is here to guide you every step of the way. Let us know how we can help—contact us today to schedule your water heater consultation!
