A quarter of the energy your home consumes, according to the U.S. Department of Energy, goes into your water heater. In most homes, heating water is the third-largest use of energy. So while that mundane-looking metal tank in your basement may not come up in everyday conversation, your choice of water heater can make a big difference in your everyday budget.
You can choose a ‘traditional’ storage-tank heater or a tankless heater, also known as a ‘demand’ heater. Neither is superior to the other, but each has its balance of pros and cons that may fit some households and circumstances better than others.