Conventional storage water heaters remain the most popular type of water heating system for homes and buildings.
How Conventional Storage Water Heaters Work
A storage water heater operates by releasing hot water from the top of the tank when you turn on the hot water tap. To replace that hot water, cold water enters the bottom of the tank, ensuring that the tank is always full. A residential water heater may store from 20 to 80 gallons of hot water, while a commercial storage water heater can range from 20 to hundreds of gallons.
Conventional storage water heater fuel sources include natural gas, propane, fuel oil, and electricity. Natural gas and propane water heaters basically operate the same. A gas burner under the tank heats the water. A thermostat opens the gas valve as the water temperature falls. The valve closes when the temperature rises to the thermostat's setpoint. Oil-fired water heaters operate similarly, but they have power burners that mix oil and air in a vaporizing mist, ignited by an electric spark. Electric water heaters have one or two electric elements, each with its own thermostat. With two electric elements, a standby element at the bottom of the tank maintains the minimum thermostat setting while the upper demand element provides hot water recovery when demand heightens.
Because water is constantly heated in the tank, energy can be wasted even when a hot water tap isn't running. This is called standby heat loss. Only tankless water heaters—such as demand water heaters and tankless coil water heaters—avoid standby heat losses. However, some storage water heater models have heavily insulated tanks, which significantly reduce standby heat losses.
Gas and oil water heaters also have venting-related energy losses. Two types of water heaters—a fan-assisted gas water heater and an atmospheric sealed-combustion water heater—reduce these losses. The fan-assisted gas water heater uses a draft-induced fan that regulates the air that passes through the burner, which minimizes the amount of excess air during combustion, increasing efficiency. The atmospheric sealed-combustion water heater uses a combustion and venting system that is totally sealed from the house.
Other options include less conventional storage water heaters—heat pump water heaters and solar water heaters. These water heaters are usually more expensive but they typically have lower annual operating costs.