High Efficiency Water Heater- The alternative to Tankless.

We are all aware by now that the standard storage tank water heater is out-dated technology that does not meet our needs for fuel efficiency and reduced carbon emissions.  We know that 45% of the gas used in our homes is attributed to our Domestic Hot Water needs.   Many people have researched tankless water heaters, also known as Flash water heaters or on-demand water heaters and found that they can increase efficiency dramatically and produce endless hot water with reduced carbon emissions.  This same research may have led them to the conclusion that there are some draw backs to tankless technology- long delays in hot water delivery to fixture with increased water wastage and high cost of installation in some cases.

There is another solution to the Water Heater problem, High Efficiency Condensing Water Heaters.

Stored hot water is very useful, ready to go when you need it.   The problem with the standard storage tank water heater is not just its inefficiency in heating the water, it is also that it has to keep firing to keep the water hot.  It uses a lot of energy to heat water that is not used.  This is, in simple terms, because it has a big hole through the middle of it which funnels the heat from the tank out through the flue into the atmosphere.  You can insulate the outside all you like, you cannot insulate the hole in the middle.

The State Premier and A.O. Smith Vertex high efficiency, condensing water heaters take the flue from the burner and instead of venting it through the top of the heater, take it back down inside the tank so that its heat can be absorbed by the water. The flue gases that come out, from the bottom of the tank, are cool enough to be vented with PVC pipe.  The Vertex and the Premier are exactly the same units, marketed by different companies in the same way that the Ford Explorer is the Same as the Lincoln Navigator. The State is Blue, The A.O. Smith is yellow, choose your preference.  Both 50 Gallon units are available as direct vent and power vent and can have efficiency ratings of up to 96% with first hour delivery of up to 127 Gallons- that’s more than a 75 gallon water heater. There are other factors that make it a great upgrade when you replace your storage tank water heater:

  • It has the same foot print as a regular 50 gallon water heater.
  • It can use the same gas line as the existing water heater.
  • It can incorporate recirculation without any issues with warranty.
  • 92 Gallons per hour recovery, endless hot water.
  • Tax Credits.

The cost of a high efficiency storage tank water heater is typically around $1800, compared with $900 for a tankless unit.  Flash water heaters require dedicated gas lines and stainless steel flue piping.  So the installation of the high efficiency storage tank is typically less making them pretty equal in the overall scheme. Typical installation costs are around $2600 to $3500.  Some installation factors such as flue piping length and condensation drainage may be issues and increase the cost.

High efficiency storage tank water heaters, such as State Premier or A.O. Smith Vertex have great applications with hydronic heating systems and solar hot water. They can be used with hydronic air handlers for a low cost upgrade to a more comfortable, greener combined heating /DHW system.

For more information, contact an experienced installation contractor.

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