There are various ways to heat water for your family's needs. One method is the solar hot water system which uses the sun's heat and which has been used for decades in homes and businesses. Solar heated water systems have been common in Southern California for awhile. Some countries, like Israel, even require it. A homeowner that uses electric water heating could save about $500 in the first year. The savings over time increase because of increasing electricity rates. The average solar heating system pays for itself in 4 to 7 years. Another way of heating water for your home is using a tankless or on-demand water heater. These heaters provide hot water right where you need it, when you need it, without a storage tank. Using electricity, gas or propane tankless water heaters can cut your water-heating bill by 10% to 20%. The savings come by eliminating standby losses--energy wasted by warmed water sitting around unused in a tank.Tankless water heaters are not appropriate for all uses and sometimes they will not save that much energy or money. Large families that need a lot of hot water forshowers, laundry, dishwasher, etc. will probably not benefit from a tankless system. Another method recommended by the Department of Energy is a new technology called heat pump hot water systems. Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly. That is why they can be 2 to 3 times more energy efficient than conventional electric resistance water heaters. The Department of Energy sets the standards for such systems with the most recent update taking effect January 2004. The Dept. of Energy says, "Heat pump water heater systems typically have higher initial costs than conventional storage water heaters. However, they have lower operating costs, which can offset their higher purchase and installation prices." Do the research and find out which method would be better for your family when the time comes to replace your existing water heater.

Blog inspired by article featured on consumerenergycenter.org and can be seen here:  http://www.consumerenergycenter.org/home/appliances/waterheaters.html