Having a hot shower can be a great relief, especially on a cold day—but did you know that heating water can also be expensive?
According to the US Department of Energy, heating water makes up at least 20% of your energy bill. Compared to gas-powered water heaters, electric water heaters can be more cost-effective, especially when paired with renewable energy from solar panels.
Whether you need hot water for cooking, washing dishes, doing laundry, or taking a shower, the method you use makes a significant difference. In this article, we will explore how electric water heaters work, how to choose the best one, and why they are considered the perfect option for homes using solar power.
What Are Electric Water Heaters?

Currently, there are several types of electric water heaters available on the market:
- Tankless Water Heaters: Rather than storing water in a tank, tankless water heaters use super-heated electric coils to heat water only when you need it. These are installed near the water outlet so that hot water is delivered quickly and efficiently.
- Conventional Water Heaters: In conventional water heaters, electric heating elements are located inside a storage tank. The size of the tank determines the amount of hot water available, and once the water is heated, it remains at a constant temperature until it is used.
- Hybrid Water Heaters: Also known as heat pump water heaters, hybrid water heaters draw heat from the surrounding air or ground to warm the water. This technology is more energy efficient because it uses ambient heat rather than relying solely on electric resistance.
- Solar Water Heaters: Although traditionally not classified as electric water heaters, solar water heaters operate with the help of electricity. They use solar energy to heat water, which can then be supplemented by an electric system if needed.
How Do Hybrid Water Heaters Work?
Hybrid water heaters, or heat pump water heaters, function quite differently from tankless or conventional models. Instead of using heating elements to generate heat, they absorb heat from the surrounding air (or ground) and transfer it to the water.
This process works in a manner similar to a refrigerator, but in reverse: while a refrigerator removes heat to keep items cool, a hybrid water heater absorbs heat to warm the water.
As a result, hybrid water heaters are more energy efficient because they require less electricity to heat water. By using ambient air as an energy source, these appliances reduce your energy consumption while still providing ample hot water for your home.
Pros and Cons of Electric Water Heaters

When choosing a water heater for your home, your decision will depend on your needs and the design of your household. Each type of water heater comes with its own set of advantages and disadvantages.
Tankless Water Heaters
Pros:
- Water is heated only when needed, reducing energy waste.
- They do not rely on a storage tank, which means they can provide a continuous supply of hot water.
- More energy efficient compared to conventional water heaters.
- They can be installed near the point of use, minimizing heat loss.
Cons:
- Installation can be costly.
- They often require modifications to your current infrastructure to accommodate the new system.
Conventional Water Heaters
Pros:
- Time-tested technology with a long history of reliable use.
- Generally cheaper to install compared to tankless systems.
- Their design is familiar and common in many homes.
Cons:
- The availability of hot water depends on the tank size.
- They tend to be more expensive to operate due to heat loss from the storage tank.
Hybrid Water Heaters
Pros:
- The most energy-efficient option among electric water heaters.
- Lower energy costs in the long run.
- They can work in combination with central heat pump systems.
Cons:
- The availability of hot water is still dependent on the tank size.
- They have a higher upfront cost.
- Installation is more complex and may require additional space.
How to Choose the Right Electric Water Heater for You

When replacing your water heater, many people are tempted to simply grab the latest model. However, there are several important factors to consider before purchasing a new electric water heater:
- Size: Measure the area where the water heater will be installed to ensure a proper fit. The unit should fit comfortably in the designated space without obstructing other utilities or pathways.
- Type: Decide whether you want a hybrid, solar-powered, tankless, or traditional water heater. Each option has its own benefits and limitations, so choose the one that best suits your home’s needs and your energy usage goals.
- Capacity: Ensure that the water heater you select can supply enough hot water for your household. Consider the number of occupants and your typical water usage to avoid running out of hot water during peak times.
- Energy Efficiency: Look for a water heater that is Energy Star certified. The Energy Star label indicates that the appliance meets high efficiency standards. If you use solar panels at home, choose a water heater that can maximize the energy produced by your solar system, so you don’t have to rely on additional electricity.
Advantages of Electric Water Heaters
Choosing an electric water heater offers several advantages compared to gas-operated units:
- Safety: Electric water heaters eliminate the risk of gas leaks and the emission of carbon monoxide, providing a safer option for your home.
- Efficiency: They do not lose energy through venting, making them more efficient overall.
- Cost Savings with Solar Panels: For homes using solar panels, electric water heaters can be more cost-effective. When electricity is generated on-site, you avoid the extra cost of gas.
- Environmentally Friendly: Electric water heaters, especially those powered by solar energy, have a lower environmental impact compared to gas heaters that rely on fossil fuels.
- Lower Investment: While the initial cost of an electric water heater may vary, they often require less investment in the long term, particularly if you are using solar power.
Final Thoughts

Electric water heaters offer a range of benefits, particularly for those looking to harness renewable energy. By choosing an electric water heater, you can avoid the risks associated with gas-powered units while enjoying lower energy costs and improved efficiency. Whether you opt for a tankless, conventional, or hybrid model, the key is to match the water heater to your home’s specific needs and energy setup.
If you are using solar panels in your home, an electric water heater is especially appealing. Not only will it maximize the energy generated by your solar system, but it also provides an environmentally friendly solution that reduces reliance on fossil fuels. When selecting a water heater, consider the size, type, capacity, and energy efficiency to ensure that you choose the right one for your home.
By understanding how each type of electric water heater works and weighing the pros and cons of each option, you can make an informed decision that will provide you with ample hot water while keeping your energy costs low. With proper research and careful consideration, you can select a water heater that meets both your practical needs and your sustainability goals.
At Union County Plumbing and Heating, we offer expert water heater installation, boiler replacement, and plumbing repairs. Our experienced technicians are ready to help you choose and install the best water heater for your home. If you have questions or need assistance with your water heater, please contact us at 908-585-1077 or email coolmike1968@gmail.com.