Cost effectiveness
There are many things you can do to keep an old heater as long as possible. You can also buy a new tank with the latest technologies that can be more effective than fixing the old water heater. Which one to do?
A cost analysis can help determine what would be a more productive course of action. Simply calculate the savings from the old equipment and compare the cost of the new equipment to the purchase price and energy savings.
It’s best to find ways to save energy and money with cheaper ideas like new low-flow showerheads, heat traps, insulation, vent dampers, or a water heater blanket. You can also set your thermostat down as well.
Maintaining old equipment saves the cost of new equipment, obviously. If you can double the life of your heater, you’ll save big by not buying a new heater. The best thing you can do is do money-saving activities on your water heater, and then with the money saved, you can upgrade to a new system.
A cost cycle consists of operating costs, fuel costs, and purchase price.
To calculate cycle cost you need:
purchase price
Cost of energy or your utility bill
The annual energy cost to run the appliance can be found on the EnergyGuide label.
The estimated life of the device. For electric and gas water heaters, it must be an average of 13 years old.
A discount number that is adjusted for inflation. The discount factor is 0.83 for both an electric and gas water heater.
The formula is as follows: Purchase Price+Annual Energy Cost+LifetimexDiscount Number=Cost Cycle
This information is provided by the ACEEE (American Council for an Energy Efficient Economy)