Fuel Types, Availability and Costs for Water Heating

When selecting a new water heater, it’s important to consider what fuel type or energy source you will use, including its availability and cost. The fuel used by a water heating system will not only affect annual operation costs but also the water heater’s size and energy efficiency.

Exploring Water Heater Options by Fuel Type

Fuel type and its availability in your area may narrow your water heater choices. The following is a list of water heater options by fuel or energy source:

• Electricity
  Widely available in the United States for conventional storage, tankless or demand-type, and heat pump water heaters. It also can be used with combination water and space heating systems, which include tankless coil and indirect water heaters.

• Fuel oil
  Available in some areas of the United States to fuel conventional storage water heaters, and indirect combination water and space heating systems.

• Geothermal energy
  Available throughout the United States to those who will have or already have a geothermal heat pump system installed in their homes for space heating and cooling. See Heat Pump Water Heaters for more information.

• Natural gas
  Available in many areas of the United States to fuel conventional storage and demand (tankless or instantaneous) water heaters, as well as combination water and space heating systems, which include tankless coil and indirect water heaters.

• Propane
  Available in many areas of the United States to fuel conventional storage and demand (tankless or instantaneous) water heaters, as well as indirect combination water and space heating systems.

• Solar energy
  Available throughout the United States — most abundantly in the Southwest — for solar water heaters.