The U.S. government estimates that each person in a residential household uses approximately 100 gallons of water each day. For the average-sized family this means that the water heater contributes to nearly 40% of your monthly water bill. For an appliance that you hardly (if ever) see and rarely interact with, it has a large impact on your budget.

The overall topic of water heating is one that many people don't think about because it is taken for granted that hot water will be there when the hot water faucet or appliance is turned on. However, there are many factors that contribute to that water being available for use.

In a commercial setting there are health code regulations that require certain appliances like the dishwasher to have water available and heated to a specified temperature at all times in order to sanitize the dishes. In a residential setting everyday tasks like washing the dishes and bathing would come to a halt if hot water were unavailable.

Before deciding which type of water heater will best fit your needs, it is important to consider these factors:

Cost: Estimating the annual cost to operate each type of water heater that you are considering is an important step. This dollar amount should then be added to the overall cost of purchasing and installing the system.

Fuel Type: When considering which type of water heater will best suit your needs, consider the various compatibility with fuel sources i.e., gas, propane, and electricity. If natural gas is a difficult thing for you to source, or it would cost more to have your home or business configured to support the use of natural gas, this might not be the best option.

Size: If you live in a townhome or studio apartment, a large tank water heater might not be the best option. Instead, a tankless system that is about the size of a briefcase and installed on the wall could be more conducive to your space