Water Heater Guide

Choose the right water heater for your Denver home. Compare tank, tankless, and heat pump options with altitude and efficiency considerations.

Water Heater Types

Conventional Tank (Gas)

Traditional storage tank heated by gas burner. Most common in Denver homes.

Denver Rating: 8/10
Capacity
30-80 gallons
Efficiency
0.60-0.70 UEF
Lifespan
8-12 years
Install Cost
$800-$1,500 installed
Annual Cost
$250-$400/year

Advantages

  • Lower upfront cost
  • Simple technology
  • Works well at altitude
  • Easy installation
  • No power needed for hot water

Disadvantages

  • Standby heat loss
  • Limited hot water supply
  • Larger footprint
  • Shorter lifespan

Conventional Tank (Electric)

Storage tank with electric heating elements.

Denver Rating: 6/10
Capacity
30-80 gallons
Efficiency
0.90-0.95 UEF
Lifespan
10-15 years
Install Cost
$600-$1,200 installed
Annual Cost
$400-$600/year

Advantages

  • Lower upfront cost
  • No venting needed
  • Safer (no combustion)
  • Long lifespan

Disadvantages

  • Higher operating cost
  • Standby heat loss
  • Slower recovery
  • Needs 240V circuit

Tankless (Gas)

Heats water on-demand as it flows through the unit. No storage tank.

Denver Rating: 7/10
Capacity
Unlimited (2-5 GPM)
Efficiency
0.82-0.98 UEF
Lifespan
20+ years
Install Cost
$2,500-$4,500 installed
Annual Cost
$150-$300/year

Advantages

  • Endless hot water
  • Energy efficient
  • Long lifespan
  • Compact size
  • No standby loss

Disadvantages

  • High upfront cost
  • Altitude derating
  • May need gas line upgrade
  • Cold water sandwich effect

Tankless (Electric)

Electric on-demand water heating. Best for point-of-use applications.

Denver Rating: 5/10
Capacity
Unlimited (1-4 GPM)
Efficiency
0.98-0.99 UEF
Lifespan
20+ years
Install Cost
$1,500-$3,000 installed
Annual Cost
$300-$500/year

Advantages

  • Compact
  • No venting
  • Long lifespan
  • High efficiency

Disadvantages

  • Limited flow rate
  • High electrical demand
  • May need panel upgrade
  • Struggles in cold climates

Heat Pump (Hybrid)

Uses heat pump technology to extract heat from air. Most efficient option.

Denver Rating: 7/10
Capacity
50-80 gallons
Efficiency
2.0-4.0 UEF
Lifespan
12-15 years
Install Cost
$2,000-$4,000 installed
Annual Cost
$100-$200/year

Advantages

  • Most efficient
  • Lowest operating cost
  • Tax credits available
  • Cools surrounding space

Disadvantages

  • High upfront cost
  • Needs warm air space
  • Slower recovery
  • Noisy operation

Solar Water Heater

Uses solar collectors to heat water. Requires backup system.

Denver Rating: 8/10
Capacity
80-120 gallons
Efficiency
Varies by sunlight
Lifespan
20+ years
Install Cost
$5,000-$10,000 installed
Annual Cost
$50-$100/year

Advantages

  • Very low operating cost
  • Eco-friendly
  • Tax credits available
  • Denver has great sun

Disadvantages

  • Very high upfront cost
  • Needs backup system
  • Complex installation
  • Roof space needed

Denver Considerations

Altitude Derating

Gas appliances lose 4% efficiency per 1,000 feet. At 5,280 feet, expect ~20% derating on tankless units.

Cold Inlet Water

Denver's cold groundwater (45-55°F) requires more heating. Affects tankless sizing significantly.

Hard Water

Denver has moderately hard water. Annual flushing recommended; consider water softener for tankless.

Energy Costs

Natural gas is relatively affordable in Denver, making gas units cost-effective despite lower efficiency.

Rebates

Xcel Energy offers rebates for high-efficiency water heaters and heat pump models.

Sizing Guide

Household SizeTank Water HeaterTankless (GPM needed)
1-2 people30-40 gallons3-4 GPM
2-3 people40-50 gallons5-6 GPM
3-4 people50-60 gallons6-8 GPM
4-5 people60-80 gallons8-10 GPM
5+ people80+ gallons or multiple10+ GPM or multiple

Maintenance Tips

  • Flush tank annually to remove sediment buildup
  • Test temperature-pressure relief valve yearly
  • Check anode rod every 2-3 years (replace if corroded)
  • Insulate hot water pipes for efficiency
  • Set temperature to 120°F for safety and efficiency
  • Check for leaks around connections and tank base
  • Clear area around unit for ventilation (gas units)
  • Descale tankless units annually (especially with hard water)

Signs It's Time to Replace

  • Unit is over 10-12 years old (tank) or 20 years (tankless)
  • Rusty or discolored hot water
  • Rumbling or popping noises from tank
  • Water pooling around base of unit
  • Inconsistent water temperature
  • Frequent pilot light issues (gas)
  • Significant increase in energy bills
  • Visible rust or corrosion on tank

More Plumbing Guides

Learn about pipe systems, fixtures, and emergency repairs.