Demand (Tankless or Instantaneous) Water Heaters: A Reference Brief from the Energy Efficiency and Renewable Energy Clearinghouse (EREC)
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Overview: Water heating accounts for 20% or more of an average household's annual energy expenditures. The yearly operating costs for conventional gas or electric storage tank water heaters average $200 or $450, respectively. Storage tank-type water heaters raise and maintain the water temperature to the temperature setting on the tank (usually between 120° -140° F (49° -60° C). Even if no hot water is drawn from the tank (and cold water enters the tank), the heater will operate periodically to maintain the water temperature. This is due to "standby losses": the heat conducted and radiated from the walls of the tank?and in gas-fired water heaters?through the flue pipe.
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