How to choose Water Heaters to get Tax Credit?


In an average household, hot water costs accounts roughly at 15 cents out of every dollar paid for utility bills. However, much of this money actually spent for just keeping the water in the storage tank hot. Conventional hot water heaters are relatively inexpensive, but high utility bills will eat up that initial savings within first few years.

Conventional Water Heaters are simply large steel tank wrapped with a thin layer of insulation. In conventional water heaters, water is warmed by a gas or electric heating element that kicks on whenever the water temperature drops below the specified settings.

High-efficiency Water Heaters have basic design similar to conventional water heaters, but use better burners, power venting, and have more insulation to achieve lower energy usage. Many high-efficiency water heaters received the Energy Star designation, but almost none of them are efficient enough to qualify for energy-efficiency tax credit.

Gas-condensing Water Heaters also do not qualify yet for energy-efficiency tax credit.

Gas Tankless Water Heaters eliminate the storage tank and instead just heat water when it’s needed. Gas tankless water heaters have a simple operating principle. The cold water flows into a heat exchanger, where the heat from gas flame is transferred to the water. Typically whole house tankless water heater with an Energy Star label qualifies for energy-efficiency tax credit.

Solar Hot Water Heaters store water like conventional water heaters do, but the energy used for hot water heating comes from solar collectors. Typically solar hot water heaters use a backup heat source for cloudy days. Solar hot water heaters with energy star label qualify for energy-efficiency tax credit.

Electric Heat Pump Water Heaters are relatively a new technology. They work like air source heat pumps, extracting heat from air with a liquid refrigerant and then passing the heated refrigerant through coils in the hot water heater, where the heat is transferred to the water.

No comments:

Post a Comment