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Some communities offer rebates or tax credits for high efficiency water-using appliances. So, when you’re in the market for a new water heater, take time to learn what types of units might qualify for a rebate or tax credit.

Tankless demand water heaters are limited by flow rate. Typically, they can provide hot water at a rate of about 2-5 gallons per minute, with gas-fueled models having a higher output than electric. They can be installed centrally, or near the point of use.

The electric element used in a water heater contains an inner wire inside of a copper or stainless steel sheath and is surrounded by filler material. The electrical current heats up the resistant wire, which then transfers outward through the filler to the sheath.

According to the U.S. Department of Energy, how many types of water heaters are there on the market? If you guessed five, you're right. In no particular order, they are: conventional storage tank varieties (the most common), tankless or on demand, heat pump, solar and indirect.