Save Some Money on a New Water Heater

For 2007, Centerpoint Energy (formerly Minnegasco) is offering a $50 – $75 rebate on qualifying energy-efficient water heaters.  If you’ve got a water heater over 15 years old (or even 10 years old in some cases) you run the risk of a failure that could flood your basement.  It’s a lot cheaper to replace the water heater than to repair a flooded basement, and the energy savings may very well pay for the upgrade!

Buying Tips
Tip 1: When you are shopping for a new water heater, look at the First Hour Rating on the specifications.  The higher the number the more hot water you can get out of the water heater the first hour.  You may be able to go with a smaller size water heater and have a similar First Hour Rating by comparison shopping.

Tip 2: Going with a water heater with a longer warranty will likely increase your First Hour Rating and also improve energy efficiency, a great one-two punch that makes up for the increased expense of the upgrade over the life of the water heater.

Example
A 40 gallon, 6 year warranted Sears Kenmore natural gas water heater (item #04233626000) costs $319.99, has an insulation R-value of 8, and a First Hour Rating of 63 gallons, and has an Energyguide estimated cost of $231 per year.

A 50 gallon, 6 year warranted Sears Kenmore natural gas water heater (item #04233656000) costs $349.99, has an insulation R-value of 8,  and a First Hour Rating of 87 gallons,  and has an Energyguide estimated cost of $235 per year.

A 40 gallon, 12 year warranted Sears Kenmore natural gas water heater (item #04233144000) costs $419.99, has an insulation R-value of 16, and a First Hour Rating of 81 gallons, and has an Energyguide estimated cost of $217 per year.

So based off of these three models, choosing the 12-year 40 gallon model over the 6-year 50 gallon will cost $70 more and provide 6 gallons less hot water in the first hour, but will save you an estimated $18 per year or $216 over the warranted life of the water heater (which is twice as long!).