Storage tank

Eligible models

Efficiency: good

Life expectancy: 10 to 13 years

Pros:

• can handle multiple, simultaneous demands for hot water
• quick recovery means there’s less chance of running out of hot water (some units can heat up to five gallons per minute)

Cons:

• some heat will be lost through the flue gases exhausted to the outdoors
• electrical outlet required, so it won’t work during a power outage

Condensing tankless

Eligible models

Efficiency: ultimate

Life expectancy: about 20 years

Pros:

• heats water as you need it
• takes up less space than a storage tank
• can be wall mounted
• condensing technology means heat from flue gases is recovered instead of lost, helping to save energy and costs
• if you are upgrading from a storage tank to a tankless model, you may be entitled to a discount on your homeowner’s insurance

Cons:

• you may have to wait a few seconds for hot water when you turn on the tap
• most won’t work during a power outage
• requires a drain for water condensation leaving the system

Condensing storage tank

Eligible models

Efficiency: ultimate

Life expectancy: 12 to 15 years

Pros:

• offers the benefits of a standard storage tank with much higher efficiency
• good for large households and can handle multiple, simultaneous demands for hot water
• quick recovery means there’s less chance of running out of hot water (some units can heat up to five gallons per minute)

Cons:

• requires a drain for water condensation leaving the system