Energy Star Water Heater Versus Standard Efficiency
Your Lifetime Cost For Each
After cooling and heating costs, water heating is the next largest energy consumer in your home. aIf you are consideringareplacing your gas or electric water heater, choosing an Energy Star water heateramay save you money over the lifespan of the new water heater. a While there are very efficient (and more expensive) water heaters available, they don?t always make economic sense ? it largely depends on the number of people in your household.
The Energy Star Certification means the item uses less fuel than those which don?t earn the certification. aIt does not guarantee a lifetime savings with the Energy Staramodel. aLifetime savings is initial purchase cost + operating costs over the lifetime of the item. aToday?s water heaters last, on average, last around 10 years.
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ForaElectric Water Heaters
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Rheem Standard Efficiency Electric a a a a a a a a aRheem Energy Star Water Heater a(with High-EfficiencyaHeat-Pump)
Operating Cost-1o Years = $5,550.00 a a a a a a a Operating Cost-1o Years = $2,150.00 a a a aOperating Costs Savings ? 10 Years a$3,400.00 a a aThat savings is impressive!
But? aThere is more to the story in DFW:
- The Department of Energy (DOE) conducts water heater efficiency-tests at 68 degrees.
- In DFW, our water heaters are typically located in the garage or attic.
- As the garage / attic temperature falls below 68 degrees, the Energy Star Water Heater (with heat pump)amust run longera(than during DOE tests). aThis makes operating costs higher.
- If the garage / attic temperature falls below 40 degrees, or rises above 120 degrees (which is much of the year in a DFW attic) ?athe Energy Star water heater switches over to all-electric water heating. The more time the water heater is running in all-electric mode, the higher the operating costs.
- For these reasons, the annual operating costs on the yellow EnergyGuide don?t accurately apply to DFW (unless your water heater is located within heated / cooled living space).
- The Heat-Pump Water Heater Purchase Cost is around 2-1/2 times the cost of the standard water heater.
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Determining If an electric Energy Star Water Heater is worth the extra purchase cost:
- Compute your annual operating costs with this DOE calculator: aDOE Water Heater Operating Cost Calculator
- Use 25 gallons of hot water for each person in the household
- Enter .95 as the Energy Factor for standard electric water heater
- Enter $.10 (10 cents per kWh) as the cost of electricity
- Enter 1 foraQuantity of Water Heaters to be Purchased (If you have more than 1 water heater, enter the number of water heaters your home has).
- The Energy Star Water Heater (with heat pump) has an Energy Factor of 2.5 (+250% more energy efficient) ? the DOE calculator won?t take a number above .95 so divide the standard standard electric water heater?s annual operating cost by 250% (use the % key). aThis will give you the Annual Operating Cost for a Heat-Pump Water Heater
- For Lifetime Operating Cost: Take the Annual Cost Savings x 10 (years)
Last: Subtract theaAdditional Purchase Cost from the HPWH 10 yearaOperating Cost Savings. aKeeping in mind the HPWH will be more expensive to operate in DFW than the DOE estimate.
(An Energy Star Heat-Pump Water Heater Purchase Cost is around +250% more than standard water heater).
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EXAMPLES:
For a 5 person household:
- 125 gallons of hot water per day (for a 5 person household)
- .95 Energy Factor
- $.10 10 cents / kWh for Electricity Cost
- 1 aNumber of Water Heaters
- Annual Energy Cost for Standard Electric Water Heater = $900.00
- For HPWH: 900 divided by 250% (use the calculator?s % key) = $360.00
- Energy Savings per year with the Energy Star Water Heater: $540.00
- Energy Saving Over 10 Year Water Heater Lifetime: = $5,400.00
Summary: aFor a 5 person household, the operating costs savings would be moreathan the difference in purchase cost in a DFW home with water heater in garage or attic.
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For a 1 person household:
- Annual Energy Cost for Standard Electric Water Heater = $180.00
- For HPWH: 900 divided by 250% (use the calculator?s % key) = $72.00
- Energy Savings per year: $108.00
- Energy Savings Over 10 Year Water Heater Lifetime: = $1,080.00
Summary: aFor a 1 person household, the operating costs savings would be likely be less than the difference in purchase costain a DFW home with water heater in garage or attic.
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For GAS Water Heaters:
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Rheem Standard Efficiency Gas a a a a a a a a a a a a aRheem Energy Star rated Gas
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Determining if an Energy Star GAS Water Heater Is Worth the extra purchase cost:
- Compute your annual operating costs with this DOE calculator: aDOE Water Heater Operating Cost Calculator
- Change calculator to GAS water heater
- Use 25 gallons of hot water for each person in the household
- Enter .60 as the Energy Factor for standard gas water heater
- Enter .68 as the Energy Factor for High-Efficiency gas water heater
- Enter $.98 (98 cents per therm) as the cost of gas
- Enter 1 foraQuantity of Water Heaters to be Purchased (If you have more than 1 water heater, enter the number of water heaters your home has).
- ForaLifetime Operating Cost: Take the Annual Cost Savings x 10 (years)
Last: Subtract theaAdditional Purchase Cost from the Energy Star rated gas water heater from thea10 yearaOperating Cost Savings.
(An Energy Star Gas High-Efficiency Water Heater Purchase Cost is around +35% more than the cost of the standard water heater).
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For a 5 person household:
- 125 gallons of hot water per day (for a 5 person household)
- .60 Energy Factor
- $.98 (98 cents per therm of gas)
- 1 aNumber of Water Heaters
- Annual Energy Cost for Standard Gas Water Heater = $475.00
- Annual Energy Cost for Energy StaraGas Water Heater = $420.00
- Energy Savings per year: $55.00
- Energy Saving Over 10 Year Water Heater Lifetime: = $550.00
Summary: aFor a 5 person household, the operating costs savings would be moreathan the purchase cost differencea(regardless of water heater location).a
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For a 1 person household:
- Annual Energy Cost for Standard Electric Water Heater = $84.00
- Annual Energy Cost for Energy StaraGas Water Heater = $ 95.00
- High-Eff Energy Savings per year: $ 9.00
- Energy Savings Over 10 Year Water Heater Lifetime: = $90.00
For a 1 person household, the operating costs savings with and Energy Star water heaterawould be likely be less than the purchase cost difference (regardless of water heater location). a For a 5 person household, savings would likely be more than the purchase costs difference. aYou can use the calculator shown earlier in this article to determine your savings, based on the number of people in your household.
SUMMARY:
Energy Star products always use less fuel that their counterparts without an Energy Star rating. aIn order to determine if the savings is more than the purchase cost difference, you must determine the savings for your household. aIn nearly all cases, the saving increases with increased household size.
When considering an Energy Star model, you must look at the lifetime costs which includes both Purchase Price + Operating Costs over the lifetime of the product. aWith that, you can determine if a notably larger purchase price is justified for your household. aWhen the purchase price difference is modest, it?s likely safe to conclude the Energy Star model will save you money.
Al?s Plumbing, Heating & A/C repairs and replaces any brand of Water Heater. aDepending on its age and what?s wrong with the water heater, you can determine if replacement is a better option. In some cases (such as a leaking water tank) ? the water heat cannot be repaired, so replacement is your only option. aHowever, if your water heater has stopped heating, there are several parts which have a modest replacement cost, making repairing the water heater perhaps the better option.
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