The water heater in your home uses about 14 percent of your energy throughout the month, and if your energy bills are high, it may be time to replace the unit. If your water heater is a traditional tank that fills up with water when the hot water is used and works to heat the water all day long, you are wasting money constantly. Here are two efficient alternatives for your water heating needs that you'll want to look into when you're tired of paying for high water heating bills.

Tankless Hot Water Heater

 A tankless water heater is heated by gas or electricity at the time the faucet is turned on, so energy isn't wasted when the water isn't needed. These units are very efficient since the unit isn't running at all times, and you can get as much hot water as you need, even for different appliances at the same time. This unit could be up to 34 percent more efficient than the unit you already have in the home. These units can easily be installed under a sink, and you can get more than one unit to improve efficiency more.

Geothermal Water Heater

The geothermal heat pump water heater works up to three times more efficiently than a traditional water heater by transferring heat around to heat the water for your use. The heat is pulled from the ground, and sometimes by water, depending on where you live and what system will work the best for you. These units can be standalone and installed to solely support your water heating needs or used with a traditional water heating system. The climate where you live will determine if you can use this type of system independently to heat your water, since the soil has to maintain a specific temperature.

The professional HVAC contractor will look at the layout of your house, and take into consideration the weather where you live, to decide what type of water heating system is going to work the best for your home, and what will be the most efficient. Replacing your old hot water heater with a new water heating option can help you earn a federal tax rebate, or a state tax rebate, depending on your state and what model you choose. The HVAC contractor can let you know which models they can install that will help you qualify for a tax credit. 

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