When we think about where our energy dollars go, we notice the 
obvious choices we see every day around the house - lights, kitchen appliances, 
television, and air conditioning and heating. But we tend to overlook the 
expense of heating water for our daily needs, however 25% of each energy dollar 
goes to heat water. 
Like most appliances, water heaters have improved greatly in 
recent years. Today's models are much more energy efficient. That's why you 
probably couldn't replace your existing water heater with the same exact model - 
and you probably wouldn't want to. Instead, you may be able to purchase a more 
efficient water heater that will save you money on energy each month. That's why 
you shouldn't just consider the initial purchase price - think about how much it 
costs to operate. You could save hundreds of dollars in the long run. 
Look at it this way - some cars get 15 miles to a gallon, while 
other, more efficient vehicles can go 30 miles or more on a gallon of gas. In 
the same way, some water heaters use energy more efficiently. Buy one of those 
and you'll spend less money each month to get the same amount of hot water. 

The average life expectancy of a water heater is 13 years. That's 
how long you'll be living with the decision you make now. If you choose a water 
heater that saves you money, the savings will continue for years. 
If your new water heater saves an average of a dollar a month in 
energy costs, that amounts to a savings of $12 a year - or $156 over its 
expected lifespan. 
Electric vs Gas 
Your first decision should be whether to buy a gas or electric 
model. If you're replacing an existing water heater, check to see what type you 
have now. Is it gas, electric or even propane? Do you have a natural gas outlet 
available at the water heater, or only an electric outlet? Many homes are not 
equipped with natural gas. Obviously, it would not be a good idea to buy a gas 
water heater if you have an all-electric home. 
Which is better - gas or electric? 
In almost all of California, natural gas is the most economical 
way to go. It usually costs three times as much to heat the same amount of water 
with electricity as it does with gas. 
If you have an electric water heater and a gas furnace or stove, 
you may save money in the long run if you extend the gas line to your water 
heater. 
If you live in a rural area that has propane service instead of 
natural gas, propane is usually less expensive than electricity. 
 
 
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