Compare Electric and Propane Hot Water Heaters Before Purchasing.

• 1). Consider the importance of the energy use of each brand and style of hot water heater. While solar heaters use little or no external energy source, hybrid heaters exist which combine electricity and gas as fuels. The hybrids, nearly always Energy Star rated, qualify for a 30 percent tax credit (capped at $1,500 in 2010) as well as state and local rebates and incentives. Some conventional hot water heaters, both electric and propane, may also qualify for Energy Star incentives.
  
  
• 2). Research the price of both the hot water heater and the cost of fuel. The least expensive way to heat water is with natural gas, but lacking natural gas, using propane costs less than electricity. The least expensive models of heaters are the newer tankless styles, regardless of the type of fuel used. If the water heater is a replacement, installation cost will be reduced by not changing from electricity to gas or the reverse.
  
  
• 3). Investigate the speed or flow rate at which the types of hot water heaters supply hot water. This is indicated by the First Hour Rating, which will be noted on manufacturers' labels. The measure of efficiency will be a factor to consider when purchasing a hot water heater. FHR should match with the number of people and bathrooms in the building. A tankless heater is best used for a single room, kitchen or bathroom, because its FHR is restricted.
  
  
• 4). Ask for at least a 12-year warranty on the appliance. Such a warranty assures that some parts and labor will be free or at a minimum cost although the actual terms of a guarantee may vary widely. The best way to compare repair costs is to consult the plumber who will be called on to perform such work.
  
  
• 5). Check the manufacturer's specifications for insulation of the hot water heater. More is better; two inches is much better than one inch in retaining the heat in the hot water which in turn reduces both cost and energy use.