Indirect vs Standard NG Water Heater

timccarpenter

It is time to replace our 20 year old Rheem, Atmospheric water heater (getting a lot of rust in the hot water that we just can't get flushed out). We had a new high efficiency Lochinvar boiler installed last year with the assumption that when the water heater needed to be replaced, we would replace it with an indirect tank. Now that the time has come to replace the water heater, I'm struggling with what to do. The indirect tank installed is $5300. Replacing the existing water heater with the another regular has water heater is $2000. Seems like a no brainer to just go with the old style water heater. Just disappointing as it isn't efficient. We may be in this house another 5-7 years. It doesn't look like there are any federal energy rebates for replacing a gas water heater with an indirect tank (too bad as it is an energy efficient improvement). What am I missing? Are there tax credits available? Is there some other option I should be considering?

Pulse

No tax credits for these

Your standard 50gal gas tank is going to be like $6-900 with a 6-10yr warranty. A 40gal Lochinvar Squire will have a lifetime warranty, but will be ~$1560(supplyhouse.com). It will also require a ~$210 circulator. All the other components of the install are basically the same/minor.

The labor on the indirect install seems kinda extreme, maybe do some DIY

..since you already have a boiler an indirect is certainly the way to go..

..but if you are just in this home for another 5 years..perhaps go cheap

hot_rod

Most families spend around $400 bucks a year for DHW. So the small efficiency gain for that price difference may not pencil out for a 5-7 year timeframe.

Fired tanks are higher efficiency, better insulated than that old Rheem.

Larry Weingarten

Hi @timccarpenter , There probably are credits for installing a stand-alone heat pump water heater. Look here: https://www.dsireusa.org/

Yours, Larry

ethicalpaul

A gas water heater is probably overall the least money over its lifetime. Because as was said above, even a relatively inefficient gas unit is cheap and hardly costs anything to run.

But I got a heat pump water heater because I liked the cash incentive and I wanted to try the technology and for this last reason: I don't have to have a flue that sucks heated air out of my house and up the chimney.

Also, so easy to DIY install