Energy-Efficient Hot Water Tank Options for Calgary Homeowners
When you’re paying the hot water bills through Calgary’s long winters, energy efficiency makes a big difference.
Monthly utility bills and the cost of living keeps going up. Homeowners want hot water they can count on and lower energy bills.
Upgrading your older hot water tank to a more energy-efficient water heater can cut your monthly costs and set your home up for the future. There are a few different options, and the best one depends on your home and hot water use.
In this guide, we go over the best energy-efficient hot water heater options in Calgary, compare their benefits and costs, and give you the best situations for each of them.
Want us to do the heavy lifting? Call us today and we’ll walk you through all of your hot water tank options.
Types of Energy-Efficient Hot Water Tanks
There are four highly energy-efficient water heater categories we’ll discuss today.
Tankless (On-Demand) Water Heaters: Tankless water heaters don’t have the traditional hot water tank in the basement. They heat water only when you need it. They’re highly efficient. With no tank to heat and keep heated, they waste much less energy. They’re also compact and can be mounted on the wall.
Heat Pump Water Heaters: Heat pump water heaters transfer heat from the surrounding air to heat water, instead of generating heat directly. They use a lot less energy than regular water heaters. They work best in heated basements, garages, or utility rooms that have a lot of space and enough airflow.
High-Efficiency Conventional Tanks: Conventional hot water tanks have come a long way. They have better insulation and updated heating elements that lower the amount of energy they waste. They’re the best option for homes that use a lot of hot water at the same time.
Hybrid Water Heaters: Hybrid water heaters combine heat pump technology with traditional storage tanks, giving you a balance of efficiency, performance, and energy savings.
Each of these options has advantages, so it’s important to dig deeper and decide which one is best for your situation. Let’s get into a comparison of installation costs, energy efficiency ratings, and performance metrics.
Tankless Water Heaters: Endless Hot Water On Demand
Tankless water heaters heat water only when needed. There is no hot water tank.
Benefits and Limitations
- No energy wasted keeping a hot water tank heated
- Longer lifespan, will last 20 years with maintenance
- Can need additional insulation or a recirculating system to handle Calgary’s freezing temperatures
- Might not be able to keep up in a home with uses a lot of hot water at once
Cost Considerations and Long-Term Savings
- Upfront cost: ~$2,500 – $4,500 (including installation)
- Energy savings: Save up to 30% on monthly bills compared to hot water tank models
- Return on investment: A new unit can pay for itself in five to seven years with utility savings
Installation and Space Considerations
- Requires ventilation and gas or electrical connections
- Compact design, can be mounted on the wall to save space, no basement needed
- Best for homes with moderate to high hot water demand
- Great option for smaller houses and condos that don’t have basements
Brand Highlight: Navien
Navien is the #1 selling high-efficiency condensing tankless water heaters in North America. With ultra-high efficiency up to 0.96 UEF (Uniform Energy Factor) to help keep your energy bills low, Navien tankless water heaters use two heat exchangers to supply endless hot water to your home.
Schedule a consultation with Son-Rise Plumbing to assess if a tankless water heater is right for your home.
Heat Pump Water Heaters: Using Air Energy
Heat pump water heaters work like a refrigerator in reverse, extracting heat from the air to warm water. They use up to 70 percent less energy than a traditional hot water tank.
Benefits and Limitations
- Uses up to 70% less energy than conventional electric water heaters
- Lasts up to 10-15 years with maintenance
- Can help dehumidify the space it’s in, great for humid environments
- Works best in heated spaces with enough room and airflow like basements, garages, or utility rooms
- Can struggle in cold, unheated areas
Cost Considerations and Long-Term Savings
- Upfront cost: ~$3,000 – $5,500 (including installation)
- Energy savings: Reduces energy bills by 60-70% compared to standard electric water heaters
- Return on investment: A new unit can pay for itself in five to 10 years with utility savings
Installation and Space Considerations
- Requires a well-ventilated indoor space that is heated
- Needs at least 700-1,000 cubic feet of surrounding air for efficient operation
- Best suited for homes with moderate to high hot water demand
- Takes up more vertical space than standard water heaters
High-Efficiency Conventional Tanks: Traditional but Better
High-efficiency conventional water heaters have undergone significant technological improvements, making them a more energy-conscious choice compared to older models. These systems feature thicker insulation that reduces standby heat loss, improved heating elements for greater efficiency, and smart thermostats that optimize energy usage.
Benefits and Limitations
- Better insulation reduces standby heat loss, keeping water warm for longer
- More efficient heating elements lower energy consumption compared to standard tanks
- Longer lifespan, typically lasting 12-15 years with proper maintenance
- Provides a large supply of hot water, making it ideal for families
- Still uses more energy than tankless or heat pump models, but is more efficient than standard electric or gas tanks
Cost Considerations and Long-Term Savings
- Upfront cost: ~$1,500 – $3,000 (including installation)
- Energy savings: Uses 10-20% less energy than standard water heaters
- Return on investment: Pays for itself over five to eight years through lower energy bills
Installation and Space Considerations
- Similar in size and shape to traditional tanks, making replacement easy
- Requires ventilation and gas or electrical connections
- Best suited for homes with high hot water usage that need a consistent supply
- Does not require extra space for airflow like heat pump water heaters
- A great option for homeowners looking for a more efficient alternative to standard tanks without major system changes
Cost Comparison with Standard Tanks
High-efficiency conventional tanks cost more upfront than standard water heaters, with prices typically ranging from $1,500 to $3,000, including installation. However, their improved insulation and energy-efficient heating elements help reduce energy consumption by 10-20%. Over time, these savings lead to lower utility bills, making the higher initial investment worthwhile. In contrast, standard tanks have a lower purchase price but consume more energy, resulting in higher long-term costs.
Brand Highlight: Giant’s ECOPEAK Technology
Giant manufactures a complete line of residential hot water tanks built right here in Canada. These high-efficiency, well insulated hot water tanks are made with stainless steel and use corrosion-resistant heating elements. Their ECOPEAK technology reduces peak demand by spreading out the heating cycle and lowering energy use and utility bills.
Schedule a consultation with Son-Rise Plumbing to talk about upgrading to a high-efficiency hot water tank.
Hybrid Systems
Hybrid water heaters combine the high efficiency heating of heat pump technology with a traditional hot water tank. They mainly use heat pump technology to heat water, although they also have heating elements. That way you get very high efficiency but still enough hot water available at all times for a large household to use.
Choosing the Right Size and System
When you’re choosing the right energy-efficient hot water heater, there are a few factors to consider, including the size of your home and household, how much hot water you use throughout the day (and at the same time), and how much space you have available.
Smaller homes and condos might be best off with a tankless system. Medium-sized homes with three to four members will probably need a 200 L tank. Larger households with five or more people should consider a 280-300 L tank to meet their hot water demands.
Calgary’s cold climate is also a factor. Colder groundwater needs more energy to heat, and tankless heaters can sometimes struggle to keep up (without extra features like recirculating systems and insulated pipes) if you need a lot of hot water. Heat pump water heaters can also be less efficient in cold basements or garages.
Energy consumption comparison:
- Heat pump water heaters: 1,000-1,500 kWh annually, using 60-70% less electricity than standard tanks.
- Standard electric tanks: 4,000-5,000 kWh annually, making them the least efficient option.
- Tankless gas water heaters: 15,000-20,000 BTU per hour, significantly lower than traditional storage tanks.
- Traditional gas storage tanks: 30,000-50,000 BTU per hour, consuming more energy than tankless models.
- High-efficiency hot water tanks: Reduce energy use by 10-20%, but still consume more than hybrid or tankless systems.
- Hybrid water heaters: Use 1,500-3,000 kWh annually, combining heat pump efficiency with backup electric heating.
Installation and Maintenance Requirements
Any new water heater should be installed by a licensed professional.
This is especially true for gas-powered water heaters that require venting and gas line work. Self done installations can void warranties, nullify permits, and cause problems down the line when it’s time to sell. They can also be very dangerous.
Most hot water heater installations in Calgary require a city permit, which a licensed gas fitter will get on your behalf.
Annual maintenance is also important to keep your system running like new for years to come. Tankless units should be flushed annually to prevent mineral buildup, heat pump systems require air filter cleaning, and conventional tanks should be flushed and have their anode rods and burners checked.
Schedule a consultation with Son-Rise Plumbing to have your new water heater installed and maintained.
Cost Analysis and Return on Investment
As we’ve discussed, the initial cost of a new energy-efficient hot water heater depends on the type.
- Tankless models: $2,500 – $4,500
- Heat pump water heaters: $3,000 – $5,500
- High-efficiency conventional tanks: $1,500 – $3,000 (most affordable option)
Energy savings can range from $100 to $600 annually, depending on the system, with return-on-investment periods varying from five to ten years.
System Type | Initial Cost | Annual Savings | Payback Period |
Tankless | $2,500-$4,500 | $150-$400 | Five to seven years |
Heat Pump | $3,000-$5,500 | $300-$600 | Five to ten years |
High-Efficiency | $1,500-$3,000 | $100-$300 | Five to eight years |
Homeowners in Calgary may also be eligible for government rebates on energy-efficient water heaters, which can also lower your initial investment. Keep an eye out for both provincial and federal rebate programs such as the Canada Greener Homes Grant (now closed) and the Canada Greener Homes Loan.
Son-Rise Plumbing & Gas Fitting: Your Calgary Hot Water Heater Professionals
At Son-Rise Plumbing & Gasfitting, we’ve been helping Calgary homeowners with hot water heater installations, replacements, repairs, and maintenance for almost 40 years.
With nearly 40 years of industry experience, we’re dedicated to serving Calgary with the best hot water heater services out there. We have a reputation for courteous, respectful staff and a commitment to customer service.
Think you’re ready to upgrade your hot water heater? Or, need more guidance from one of our hot water heater experts?
Call us at 403-274-1166 to talk to one of our specialists or get in touch with us online!