How To Cut Your Electric Bill Using a Tankless Water Heater

Electric water heaters can be considered a necessity for every home.  Yes, no one really likes taking a cold shower early in the morning when it is chilling cold, right?  Well, the only problem with most water heaters, especially with tanks, is that it is not energy efficient.  And, if you are using an electric water heater with a tank, you electric bill should be sky high every month.  Fortunately, in these tough times where money is tight, you can actually cut down the costs on your electric bill by replacing your tank based water heater with one that is tankless.  Here are some things that you should know about this matter.

  • Check if your home is good for the tankless heater.  Unfortunately, not all homes may be available for tankless water heaters.  Some homes may have limitations that will restrict this type of appliance and installation, especially if it conflicts with the building code and other safety measures for the structure.  This being said, it is highly recommended to have the contractor, who you may hire to install the water heater, to check your home to see if it is safe and within code to install the water heater.
  • Expect rebates.  Most people don’t know that there is existing legislation that provides tax rebates for people that have shifted to more energy efficient appliances.  Included in this legislation are tankless water heaters.  According to the law, should you choose to switch from an electric tank based heater to a tankless one, you may be entitled to a $300 tax rebate from the federal government provided that you qualify for it.  Check the actual legislation for the requirements of the rebate.
  • Install separates.  Basically, you can choose from two types of electric tankless water heaters.  The first type is the general type, which is big enough to provide heated water to every appliance and faucet needing it.  While this may seem appealing, the unit costs quite a bit and the savings on your electric bill may not decrease significantly.  The second type is the separate or single unit water heater.  This type of tankless heater can be installed to work in specific appliances or faucets only.  This makes sure that you limit its use thus, limiting the use of unnecessary electric current in the process, which should significantly reduce your electricity costs.
  • Turn it off when not in use.  Practicality and common sense will always dictate that if something powered is not in use, then it should be turned off.  This practice will actually save you a lot of energy and money.  So, if you do install a tankless water heater, you can really cut costs by making sure that it is turned off when not in use.

When choosing the electric tankless water heater brand and model to go with, it is important to go with one that has the best energy efficiency rating.  This rating is normally displayed in front of the unit.  The general rating will give you an idea of power consumption once the unit is activated.


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