Many of the benefits of hybrid water heaters, especially those installed through Blue Planet Plumbing, are covered on our Water Heater Service page, but we’ve also gathered some additional pros – and some cons – for those who love digging into the details.
Cost Savings and Return On Investment
One of the more significant benefits of hybrid water heaters is the potential cost savings. According to the Department of Energy, the annual operation cost of an electric water heater for a two-person household is roughly $900 a year. For hybrid water heaters, it’s $150. This creates a return investment potential of roughly $750 annually.
The lifespan of a hybrid water heater is 15 years, so with proper maintenance, you will return and recoup your investment including Blue Planet’s installation and water heater cost. Most clients see a return on their investment in roughly 4 to 7 years with another 7 to 8 years left on the lifetime and warranty on the water heater. This is the fastest return on investment on the water heater market to date.
While tankless water heaters are very trendy, they have a long return on investment of somewhere around 15 to 18 years. While you do save money by not heating water in standby mode the savings are minimal. The installation cost comparison between a hybrid water heater and a tankless water heater are extremely close.
Tank sizes are very important for return on investment. It is important to have a large reservoir of standby water created by the heat pump so you do not have to wait on recovery time, which can be up to three hours. A mistake some homeowners make is getting a hybrid water heater that is too small. Blue Planet Plumbing technicians will review the best tank size for your home during your site evaluation.
Hybrid water heaters create a byproduct of a roughly 62° air temperature that is very beneficial for conditioned spaces. They also dehumidify during operation. Should they need to be installed in an environment that would not be beneficial to have 62° air then the air can be ducted out of the building quite easily.
Installation costs can be out of budget for some homeowners. Hybrid water heater installation is about 25% more expensive than traditional electric water heaters. Most installation jobs start at a little over $2900 depending on the brand, model, size, and type of water heater you select.
Hybrid water heaters require at least 1000 cubic feet of space for installation, which often isn’t an option in smaller homes and spaces.
They also create some noise and should not be installed in noise-sensitive areas. The noise range is around .52 decibels. We like to explain it as it creates the same amount of noise as a window air-conditioning unit.
When to Choose Tankless
Tankless water heaters should be reserved for individuals or businesses that are having issues with running out of hot water. For example, county and city government, food services, healthcare, car washes, restaurants, daycares, and laundromats cannot function without hot water.
Some customers simply prefer tankless water heaters or they do not have the correct conditions for a hybrid water heater. If conditions are not suitable, tankless water heaters are the next best option.