Solar Water Heaters Versus Demand Water Heaters

Solar Water Heater Advantages

• The biggest and most obvious advantage of a solar water heater is that the energy it uses to heat the water is free. It is powered by the sun's rays and, as a result, can reduce a heating bill up to 80 percent. This can result in a significant amount of savings every month. In addition, by installing a solar water heater, the homeowner may qualify for a tax deduction, typically around $60 a year.

Solar Water Heater Disadvantages

• Many of the disadvantages of a solar water heater are directly related to its advantages. Since it uses the sun's rays to heat the water, the solar panels must be located so that they can absorb these rays efficiently. If the location of the solar panels does not get enough sunlight, then there may not be enough energy to heat the water. Furthermore, you may need to install a backup heater to supplement this potential loss. The initial cost of installing the heater, plus a backup, is a significant expense.

Demand Water Heater Advantages

• A demand water heater heats up water on an as-needed basis. This means that instead of heating up water and storing it for later use, as with traditional water heaters, the demand water heater only heats up water as it is needed by the homeowner. The demand water heater can reduce the cost of heating water by about 35 percent.

Demand Water Heater Disadvantages

• One of the problems with a demand water heater is that sometimes the amount of hot water required is more than it can produce. If two people are taking showers at one time or the dishwasher and washing machine are running simultaneously, a demand water heater may not be able to accommodate both. As a result, it is often necessary to install more than one demand water heater in a home.