How to Find the Most Energy Efficient NJ Electric Water Heater

Water heating can account for up to 25% of a New Jersey home’s energy expenses.We use heated water to wash clothes, wash dishes, take showers, cook, and much more. To save money on energy and water bills, it’s important to find the most energy efficient NJ electric water heater available for consumers. Before we cover the ins and outs of water heating, let’s take a closer look at why many New Jersey families prefer electric water heaters over gas water heaters.

Electric vs. Gas

While NJ natural gas prices tend to be less expensive than NJ electric rates, many New Jersey homeowners still choose electric water heaters over gas water heaters. That’s because electric water heaters are cheaper to both buy and install. Plus electric water heaters are, in general, more efficient than gas water heaters because they lack a continuously-burning pilot light. Studies show that tank electric water heaters lose roughly 20% of the heat they generate due to standby loss, while gas tank water heaters may lose up to 45%.

So it seems that electric water heaters are both cheaper and more efficient than gas water heaters, but how can you find the most energy efficient NJ electric water heater? You must start by learning the basics of water heating.

Tank vs. Tankless Electric Water Heaters

The two most common types of water heaters are electric water heaters and gas water heaters. However, these fuel-types come in a wide variety of options, including the two most popular water heating unit-types: tank water heaters and tankless water heaters.

Tank electric water heaters hold up to 80 gallons of heated water in a large storage tank. The water is continuously heated in the tank to a preset temperature, typically around 140°F. Because the water in a tank water heater is always kept at such a high temperature, it incurs standby heat loss and wastes energy. In this way, a tank electric water heater is not as efficient as a model that does not incur standby losses, such as a tankless water heater.

A tankless electric water heater does not hold gallons and gallons of hot water in a large storage tank. Rather, this energy-efficient method of water heating simply heats water as it’s needed, or "on demand." When you turn on a hot water faucet in your home, a tankless water heater heats the water instantly. When you turn off the faucet, it stops heating water. In this way, no water or energy is wasted, making a tankless water heater a very energy efficient type of electric water heater.

How to Make the Most of your NJ Electric Water Heater

There are many ways to maximize the energy efficiency of your NJ electric water heater, whether it is a tank system or a tankless system.

1. Choose the right size for your family - You should base the size of your electric water heater on the size of your family and/or hot water needs. Large families require larger electric water heaters that either have a large storage tank (for a tank water heater), or a high flow rate and temperature rise (for a tankless water heater). Installing an electric water heater that is too large for your NJ family, however, will simply waste energy and cost more money to use.

2. Insulate a tank electric water heater - Just like you insulate your attic and basement to protect it from heat loss, it’s important to insulate a tank electric water heater as well. Water heater insulation jackets cost as little as $15 and can save nearly 10% of the energy it takes to heat water.

3. Lower the water heating temperature - To make your NJ electric water heater more energy efficient, simply lower the water heating temperature. Many electric water heaters have a default setting of 140°F, which not only wastes energy but also poses the threat of scalding. Most NJ households can lower their water heater temperature to around 120°F. This will lower your water heating bills, increase energy efficiency, and lengthen the life of your electric water heater.

As you can see, there are many factors to take into consideration when trying to find the most energy efficient NJ electric water heater. A tankless electric water heater is perhaps the most energy efficient, but you can increase the efficiency of a tank electric water heater by installing the smallest size possible and insulating its storage tank.