If you are in the market for a new water heater, be aware that your options now reach far beyond replacing your current storage tank water heater with one just like it. Because heating water typically consumes from 15 to 25 percent of a home's total monthly energy budget, you will discover that the best new water heaters focus on heating water efficiently. There are three common types of water heaters used in homes: storage water heaters, tankless on-demand water heaters, and instant hot-water dispensers. In this section, we will take a closer look at these.
For information on heating your water with the help of the sun, see Solar Water Heaters.