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Electric demand water heaters were tested in two homes and compared to customers’ existing gas and electric storage water heaters. Findings:

  • The demand water heater will save the tested customers about $50 per year compared to their storage electric water heaters.
  • The savings was equivalent to the storage water heater’s standby loss.
  • The electric demand water heater was nearly twice as expensive to run as the gas water heater at local utility rates.
  • Both test participants were satisfied with the hot water service provided by the demand water heaters. Neither customer used hot water at more than three gallons per minute, about the limit at which most demand heaters can fully heat the water.
  • Demand water heaters are more expensive than storage water heaters—the test units cost about $500 to $800 (retail). Installation of the test units costs another $800 to $1200 at each site.

Units: Dual