Updated: 4/30/25
A water heater in your Arizona home is essential to modern convenience and comfort. It may cost you a lot more than you expect. Usage can be as much as 20% of your total energy costs. Choosing the perfect water heater is about striking the right balance between need and cost. The plumbing team at Air Control Home Services explains everything that will help you choose the ideal model for your home.
Size
The size or capacity of a water heater determines how much hot water it can provide you within a given time frame. This is an important factor on a number of fronts. If your water heater is too small, you’ll either run out of hot water or experience low hot water pressure. If your water heater is too big, you’ll spend unnecessarily up front and will be unlikely to recoup that expense.
With certain configurations, such as tank water heaters, you’ll be spending more each day you use the system. This is why we strongly encourage involving a professional installer early in the process. Our plumber can help you size your system, stay within your budget, and get good overall value.
Fuel Type
There are electric water heaters and fuel water heaters that burn either gas or oil. Traditionally, electric water heaters are cheaper initially but more expensive in the end. Fuel-burning water heaters are more expensive initially but cheaper in the end. There are some exceptions to this rule, which we’ll discuss in upcoming sections.
Electric systems are generally cleaner. Fuel-burning systems combust gases to heat water. As a byproduct, they create dangerous gases that the system needs to vent safely. This makes it imperative to have gas and oil water heaters serviced each year. You must also have carbon monoxide (CO) detectors that require regular testing and replacement. If you have natural gas access, it’s typically the best option. If not, you’ll generally need to go with propane, which you’ll store in a tank. Oil-burning water heaters aren’t common in the region.
Energy Efficiency
The more efficient a water heater is, the less power or fuel it’ll use and the cheaper it’ll be to run. There are two ratings to consider: Uniform Energy Factor (UEF) and First Hour Rating (FHR). UEF indicates how efficient a water heater is overall. You can use it to compare one water heater to another. The rating is most useful when comparing like models, such as comparing a natural gas water heater to another natural gas water heater. FHR indicates how much hot water a system can produce during the first hour of use. This is helpful for distinguishing between two highly efficient water heating systems.
Energy Incentives
Higher-efficiency water heaters tend to cost more because they require additional and more expensive components. There’s a trade-off between saving more over the life of the equipment and spending more up front. If you can save more long term than you spend initially, it’s worthwhile. Of course, that doesn’t make it easier to budget. To help with that, there are energy incentives available.
ENERGY STAR is an Environmental Protection Agency program through which it certifies water heaters and other appliances for efficiency. There are often ENERGY STAR rebates available through manufacturers, utility companies, state and local governments, and other groups. There are also federal tax credits available, and those generally require the ENERGY STAR label, too.
Water Heater Types
There are different water heater configurations available, and those choices add context to the topics discussed above. The three core options are:
- Storage water heaters
- Instantaneous water heaters
- Heat pump water heaters
Storage Water Heaters
Storage or tank water heaters are the traditional options. Modern electric tank water heaters are cheaper and rather efficient. Still, gas-burning water heaters are more cost-effective long term. These systems store and heat water in a tank. It’s crucial to get the sizing of the tank right. If the tank is undersized, you’ll run out of hot water and be out until the system can heat more. Oversizing is an option, but it isn’t practical from a financial sense. Storage water heaters are inherently inefficient in that they have to spend energy to keep their water supply heated.
Noncondensing vs. Condensing
Traditional gas storage water heaters are noncondensing. One of the other inefficiencies of this design is that a system loses heat energy in the gases it vents outside. Condensing units achieve higher efficiency by limiting this loss. They have a second heat exchanger. The system uses that additional heat exchanger to extract heat energy from the exhaust. It can then use that energy to help keep the water in the tank heated and thereby use less fuel.
Instantaneous Water Heaters
An instantaneous water heater doesn’t store hot water. Instead, it heats your water supply as you request it. The industry calls these on-demand and tankless water heaters as well. The big advantage here is that these systems provide a virtually limitless supply of hot water. Sizing them is a bit different.
You need to choose the overall flow rate in gallons per minute that meets your peak demand. One downside in larger homes is that it can be more practical to have two or more water heaters. Another advantage of this approach is that you can oversize them. If you want additional flow rate for the holidays, for instance, it’ll cost you more up front but not on a daily basis.
You have the option of electric, natural gas, propane, and fuel oil. There are instances where an electric tankless water heater is more cost-effective long term. One example is in a smaller home that has relatively low hot water demands.
Noncondensing vs. Condensing
This is similar as discussed earlier. The main difference is that the system uses the auxiliary energy to heat the water on demand.
Heat Pump Water Heaters
Heat pump water heaters are even more efficient than instantaneous water heaters. They’re actually a type of electric storage water heater, but there are major differences in how they work. Traditional electric water heaters use a heating element to heat the water directly. Heat pump water heaters use a heat pump to exchange heat energy from outside air to the water inside the tank. This approach is significantly more efficient.
Hybrid
Hybrid heat pump water heaters have a heat pump and a heating element. They use the heat pump most of the time. During peak demand, they switch over to the heating element for faster heating of the water supply.
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Would You Like to Install a New Water Heater in Arizona?
Air Control Home Services serves Arizona homeowners out of our Bullhead City, Kingman, and Lake Havasu City locations. Our plumbers install and service all manner of water heating systems. We clean drains, pipe and repipe gas, water, and sewer lines, and provide sewer services. Count on our plumbers to install kitchen and bathroom fixtures and water softening and filtration systems.
Our HVAC technicians install and service furnaces, heat pumps, air conditioners, ductless mini-splits, and smart thermostats. We install air purifiers and repair, clean, and seal ductwork. Our electricians perform whole-home rewiring and upgrade electrical panels. We also install whole-house surge protection and indoor and outdoor lighting. If you’d like to learn more about our plumbing services or schedule an appointment, call us today, or contact us online.
