If you’re looking to cut your energy bills and go green, one thing to consider is getting a more energy-efficient water heater. Conventional water heaters – especially older ones – can be very inefficient, so it is easy to save money with a replacement.


Gas Water Heaters: If you prefer a traditional water heater, gas is more efficient than electric, but be sure to choose a model that is Energy Star certified. This guarantees that you will get the most efficient technology. The more efficient models can be a little more expensive than their less efficient counterparts, but you will recoup this additional cost in less than three years.


Heat Pump Water Heaters: A fairly new option, electric heat pump water heaters can save the typical homeowner nearly $300 a year as opposed to a standard electric heater. Heat pump water heaters operate similarly to HVAC heat pumps and can combine with your HVAC unit. However, this technology works by using warm outside air to heat the water, so they are only effective in warmer climates. They can pay for themselves after about three years.


Gas Condensing Water Heaters: This technology was only introduced in 2010, but it uses highly efficient heat exchangers to obtain heat from the fuel source. Gas condensing technology can take 30% off your energy bills while also decreasing your carbon dioxide emissions – and reducing your carbon footprint. The extreme efficiency of this type of water heater means they can provide a continuous stream of hot water, so you don’t have to worry about running out.


Tankless/Demand Water Heaters: Traditional water heaters are inefficient because they are using energy 24/7 to maintain a supply of hot water, even when no one is using it. Demand or tankless water heaters warm the water while it is flowing through your pipes, only heating what you need so you can save a substantial amount on energy costs. Tankless heaters also tend to be a lot smaller than traditional water heaters and some models can be installed outside the home, preserving indoor space. They also last about 20 years, which is more than you can expect from traditional water heaters.


Solar Water Heaters: Using a solar water heater reduces your water heating bill and your carbon footprint. Compared to an electric hot water heater, a solar model emits 50 percent less carbon dioxide, the same amount as if you didn’t drive your car four months a year. Like tankless water heaters, solar models usually last 20 years, far longer than conventional water heaters. Solar water heaters can be expensive and the pay-back period can be long, but many states and communities offer rebates or tax credits for installing a solar system.