A conventional water heater can use either electric or gas energy to heat water that is stored in a tank until you need it. Heated water is available as soon as you turn on your tap. Because of the way they store water, conventional water heaters continually use energy to reheat water as it cools in the tank. Newer, high-efficiency models are available and can decrease the amount you spend on your water heating bill by seven percent. Conventional water heaters have an average lifespan of 10 years. They come in a variety of tank sizes. The size you purchase will depend on your family’s size and water usage. A 40-50 gallon unit works well for a family of four. Smaller and larger units are also available.

For a more energy efficient alternative, tankless water heaters can reduce your water heating bill up to 60 percent. This type of water heater does not store heated water and doesn’t start working until you turn on the tap. Because of this, it may take longer for the hot water to reach you, but once it does, you have an unlimited supply, unlike with the conventional tank system. These units take up less space than a conventional water heater, but could cost more upfront for alterations to your current setup including larger gas line requirements, ventilation additions or electrical updates. Your new tankless water heater should last 10-15 years.