If your water heater is more than 10 years old, consider replacing it with a newer model. And, don’t shop for the lowest price tag. Storage-type water heaters cost less up front, but they can waste a lot of energy keeping the water in the tank at the desired temperature. Look at everything – storage, tankless, heat pump and solar models – then choose the one that fits your needs.
A good rule of thumb, especially if you’re building your home, is to compare water heater models that use different types of fuels – natural gas or electric – and see which type might save you more money in the long run.