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The Curious Bag
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<h4 class="dechead">On One Hand: Conventional Heaters Can Be Improved
The energy efficiency of conventional water heaters improves with the installation of blanket insulation to the outside of the storage tank and by setting the electric breaker to off when hot water is not in use. Gas-fired, on-demand heaters can suffer reduced energy efficiency unless there is a spark ignition device, since continuously burning pilot lights waste energy.
On the Other: On-Demand Heaters Save Energy
According to the U.S. Department of Energy, in moderate hot water use applications, on-demand water heaters can be as much as 34 percent more efficient than conventional water heaters. In heavy hot water use applications, on-demand water heaters can be as much as 14 percent more efficient. The agency also notes that installing on-demand water heaters at every outlet for hot water could boost energy efficiency over conventional water heaters to as much as 50 percent.
Bottom Line
Eliminating standby heat losses makes on-demand water heaters significantly more efficient than those utilizing tanks that store heated water.
Source:
U.S. Department of Energy: Demand (Tankless or Instantaneous) Water Heaters
The Electric Cooperatives of South Carolina: Making Old Water Heaters More Efficient
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