How Water Heater Installation Affects Energy Efficiency

Water heating is among the most energy-intensive household activities. According to the US Department of Energy (DOE), water heating accounts for approximately 18% of an average US household’s energy costs. Therefore, it is crucial to install a water heater that efficiently uses energy to minimize energy bills and reduce your carbon footprint. In this article, we will discuss the factors that affect the energy efficiency of water heaters during installation.

Size of the water heater

The first factor that affects the energy efficiency of water heaters during installation is the size of the unit. Many homeowners tend to install larger water heaters to have a constant supply of hot water. However, a larger water heater does not necessarily mean a more efficient one. A water heater that is too big for your home can waste energy and increase your energy bills.

Experts recommend that you choose a water heater that fits your household’s size and hot water usage. A water heater professional can help you calculate the required size of your water heater based on the number of people in your house and your hot water usage patterns.

Water Heater Type

The water heater type also plays a significant role in determining the unit’s energy efficiency. There are three main types of water heaters:

  1. Conventional storage tank water heaters – these are the most common types of water heaters and store hot water in a tank.

  2. Tankless water heaters – instead of storing hot water in a tank, tankless water heaters heat up water as it flows through the unit.

  3. Heat pump water heaters – these units move heat from the air or ground to heat up water.

Each type of water heater has its own energy efficiency rating, and it is important to choose the right water heater type that works best for your household’s hot water needs.


Water heater insulation is another critical factor that affects the unit’s energy efficiency. Having a well-insulated water heater means that heat loss is minimized and reduces the amount of energy needed to heat up the water. When installing a water heater, homeowners should ensure that the insulation is of high quality and installed correctly.

Location of the water heater

The location of the water heater can also affect its energy efficiency. If the water heater is installed in a cold area, such as a basement or garage, it will require more energy to maintain a consistent water temperature. In contrast, if the water heater is installed in a warm area, such as a utility room, it will use less energy.


In conclusion, water heater installation plays a significant role in determining the unit’s energy efficiency. Homeowners should consider the water heater’s size, type, insulation, and location when installing a water heater. A professional plumber can help you determine the best water heater installation that suits the hot water needs of your household. Choosing an energy-efficient water heater not only saves you money but also benefits the environment by reducing greenhouse gas emissions.

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