When to Replace a Water Heater

Most standard tank water heaters have a service life of about 8-12 years. This isn’t a hard-and-fast rule — some water heaters last much longer, while some experience problems within their first years of service. Factors that can affect your water heater’s lifespan include the quality of the water, the power source (gas or electric), and whether or not you maintain it with regular cleanings.

You may need to replace your water heater if:

• You notice rumbling sounds or other unusual noises
• The temperature of your water fluctuates
• Water appears rusty or discolored
• The heater has signs of corrosion or leaking
• You notice water around the heater

If a water heater breaks down, it could flood your home — take these symptoms seriously and replace your heater right away.

On the other hand, if your water heater seems to work properly but it’s at the end of its expected service life, you don’t need to treat the situation as an emergency. Still, you’ll need to budget for an eventual replacement, and as a rule of thumb, it’s generally better to replace a water heater before it stops functioning properly.

Energy-Efficient Water Heaters: What to Know

The cheapest water heaters are 40-50 gallon “tank" models. If you haven’t upgraded your home’s water heater in a while, these units will probably be much more efficient than your old unit. Look for models certified by EnergyStar, a government program that evaluates the energy efficiency of various appliances. An energy efficient water heater could save you money in the long run — they’re able to maintain water at a high temperature without losing much heat, so you’ll have hot water on demand without a hefty utility bill.

Keep these factors in mind when choosing your new unit:

• Energy Factor Rating- This number measures the water heater’s overall efficiency. A higher number means that the unit is more efficient.
• Capacity- A higher capacity means more hot water. However, if you don’t use hot water often (for instance, if you live in a single-person residence), a larger tank capacity might cost you money, since you’ll be paying to keep extra water heated.
• Fuel Source- Typically, you’ll want a new heater with the same fuel source as your old heater unless you’re willing to make a large investment to modify your home. Gas water heaters are more expensive, but generally more efficient than electric water heaters.

While you’re upgrading, you might want to consider a tankless unit. These heat water on demand, giving homeowners an unlimited supply of hot water. Because they don’t store water, they’re also extremely efficient, and they take up much less space than tank units. The downside: Tankless units are about twice as expensive as tank heaters, and installation costs for tankless heaters can easily climb over $1,000.

Tax Credits and Rebates for Efficient Water Heaters

Of course, you may be able to offset some of the costs of an efficient water heater — even a tankless unit — by taking full advantage of credits and rebates. Depending on where you live, your utility provider may offer you a rebate for buying an energy-efficient water heater. Some companies offer rebates of up to $1,000 for energy-conscious customers. Typical rebates are in the $50-350 range for a single appliance.Many states also offer tax credits for energy-efficient homes, which can also help you cover the cost of water heater replacement. A simple way to find out about available credits and rebates: Shop around. Plumbers and appliance companies know about rebate programs and tax credits, and they’ll often advertise them to consumers. By looking through a few online ads, you can compare all of the costs associated with the purchase — including the cost of the heater itself and the installation — and find a deal on an energy-efficient unit.

Research Before You Make a Decision

If you’re trying to decide whether or not to replace your current unit, remember that emergency water heater replacement could cost you much more than an early upgrade. A new energy-efficient unit will give you peace of mind (and plenty of hot water).

Always look at several options before replacing your water heater. Even if you’re dealing with a plumbing emergency, online research only takes a few minutes, and gathering several quotes could save you hundreds of dollars.