Will A New Water Heater Save You Money?

Replacing your water heater when it stops functioning is a no-brainer, but should you consider upgrading to save money in the future? Nobody likes to spend money unnecessarily, but upgrading old appliances can often bring real savings on future repair bills and utility costs. Since water heaters tend to be relatively inexpensive, an aging unit is a good target for preemptive replacement.

Of course, replacing your water heater won't always make financial sense. If you think it might be time to let go of your old unit, then these three questions should help you to decide whether to schedule a replacement installation or hold on for a few more years.

1. How Old Is It?

Age should be your number one consideration when deciding whether it's time to replace any appliance. Water heaters, like almost everything else in your home, have a typical lifespan. As they near the end of their lives, they will begin to function poorly, run less efficiently, and require more frequent repairs. Eventually, these costs will inevitably exceed the price of a new unit.

For water heaters, you can expect a lifespan of about ten years. If the unit in your home isn't approaching the decade mark, then the best decision might be to hold onto it for now. If you're over that mark, however, then move onto the next two questions to decide if it's the right time for a replacement.

2. How Energy Efficient Is It?

What should you do if your water heater is aging, but it still seems to be working fine? The answer is to look at the energy factor. This value should be printed somewhere on the unit's label. This value tells you the percentage of energy that the heater uses to heat water directly. If your old water heater has an energy factor of 0.7, then it loses about 30% of its energy to waste heat.

Higher energy factors can save you a significant amount of money. You typically won't recoup this cost if your water heater is still relatively new, but replacing an old unit sooner rather than later can be a wise financial move. The minimum required energy factor for water heaters is 0.67, so choose a higher efficiency to maximize your potential gains.

3. How Much Money Are You Spending On Repairs?

Repairing an old water heater is rarely worth the trouble. As conventional storage water heaters age, their tanks tend to corrode from the inside. Staying on top of maintenance can slow this process, but all storage tanks will eventually leak and fail. If your water heater is over ten years old and you find yourself spending money frequently on repairs, then a new unit will almost certainly save you some cash.

For more information about water heater installation, contact a local plumber.