Hello again from Olson Defendorf Custom Homes.
Today we are going to discuss tankless water heaters, and if one right for you.
Water heating is the third-largest expense in most homes, accounting for up to 25% of a home’s expenses. In some cases, that percentage may even be higher, which means energy-conserving hot water solutions also could result in big cost savings.
Currently, the most popular energy-efficient option for water heating is a tankless water heater. Unlike a traditional tank that heats a reservoir of water 24 hours a day, a tankless unit activates only as needed. When there is a demand for heated water, cold water travels through the tankless unit, where a gas burner quickly heats it to the preset temperature.
Tankless water heaters have proven popular in Europe for years. Like many other construction technologies, tankless water heater usage in the United States lags behind the rest of the world.
So why don’t we have more tankless systems in the US?
Price is the major factor tankless water heaters haven’t taken off in the US. Even though the annual operating costs can be half that of a conventional system, a tankless water heater can initially cost twice as much for materials and installation.
Below are some pros and cons for both systems.
CONVENTIONAL HOT WATER STORAGE TANKS
PROS:
Proven technology - The straightforward system has been around for years and works well.
Low product cost and low installation cost - A basic 40-gallon gas tank can be purchased for less than $500. Installation is fairly simple.
Inexpensive replacement cost - If and when a water heater goes bad, the system can easily replaced with a similar unit for less than $1,000.
Energy Star tanks are now available - As of this year, the Energy Star program certifies conventional high-efficiency gas water heaters, so it’s possible to save energy and money.
CONS:
Conventional tanks are always on - No matter how energy efficient it is, a storage tank cycles on a regular basis to heat and reheat water at a preset temperature, using energy to heat the water whether a homeowner needs it or not.
Big and bulky - Most storage tanks take up precious real estate in a mechanical or laundry room, especially in smaller homes.
May be inadequate - Depending on the capacity and household hot water needs, a conventional storage tank may not be able to meet demand. If not sized correctly for peak demand, tank water heaters will run out of hot water.
Less versatile installation - The unit needs a fairly large space for installation and cannot be located outside the home.
Less durable - The life expectancy of a conventional hot water tank is only about 10 years.
TANKLESS WATER HEATERS
PROS:
Saves energy - The unit only operates when there is a demand for hot water, which can reduce its energy cost by about 25% annually.
Highly efficient - The most efficient storage tank has an energy factor of about .67, but, according to Energy Star, some tankless units have energy factors as high as .95.
Reliable - If a unit is sized properly, a gas tankless heater can deliver a continuous supply of water at a preset temperature.
Compact size - The typical tankless heater is about the size of a small suitcase, which takes up significantly less space than a conventional tank.
Durable - It has a life expectancy of 20 years or more.
Versatile - The unit is easy to zone and it can go almost anywhere in the house. It also can be installed outside on a wall.
CONS:
Tankless units cost about twice as much as traditional storage tanks - A typical tankless unit can easily top $1,500.
Installation is expensive - In addition to the high product cost, installation for the unit and the necessary piping can be pricey. They also need very good venting, which is also expensive.
Retrofit is pricey and complicated - Unlike a traditional tank, retrofitting a home with a tankless unit is difficult and expensive.
Lastly, even though a tankless water heater saves energy in heating costs, it has an unintended consequence with the continuous supply of hot water. If you have a tendency to take long showers, you can negate all of your “green” activities by using more water than you normally would use.
In a continual effort to consume less and conserve more, Troy and I recommend tankless water heaters to all of our customers. If you can get over the initial higher price, you get the benefit using less energy (saving the environment and your monthly operating costs), and an added bonus of continuous hot water. Just be careful on your 30 minute showers!
We would like to thank Ecohome magazine and Nigel F. Maynard for their contribution to our blog.
Monday, October 26, 2009
Thursday, October 15, 2009
Energy Tax Credits
Hello from Olson Defendorf Custom Homes in Austin, TX.
We've had a lot of interest in the energy tax credits that started this year for improving your home. We will try to clear up what it all means to you.
The American Recovery and Reinvestment Act of 2009 includes many incentives to upgrade the energy efficiency of your home with a tax credit to offset the costs. There are basically two areas you can get the credit. There are energy improvements (windows, doors, HVAC, etc.) and renewable energy improvements (solar etc.)Energy improvements include windows, doors, roof, HVAC, water heaters, etc.
The credit is up to 30% of the cost of replacing these items with high efficiency products in the form of a tax credit ($1,500 maximum). All products must be installed by Dec 31, 2010.
Here is a quick summary.
Windows and Doors - 30% of material cost - no labor
Roof - 30% of material cost - no labor
HVAC - 30% of materials and labor
Water heaters - 30% of materials and labor
The other area is for adding renewable energy systems and includes solar panels, wind turbines, geothermal heat pumps, solar water heaters, etc. There are a few differences with these including no cap on the credit earned, and they don't have to be installed until Dec 31, 2016. All of these earn a credit up to 30% of materials and labor, no cap.
Remember, this is a credit not a deduction so it directly reduces your tax bill by the amount earned. Make sure to keep your receipts and talk to your accountant. Also, there is not an income limit with any of these. Also, in many cities like Austin, TX where we are located the local government offers more incentives as well, such as solar panel rebates.
Please see the link below for more detailed information.
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
We hope you found this helpful
We've had a lot of interest in the energy tax credits that started this year for improving your home. We will try to clear up what it all means to you.
The American Recovery and Reinvestment Act of 2009 includes many incentives to upgrade the energy efficiency of your home with a tax credit to offset the costs. There are basically two areas you can get the credit. There are energy improvements (windows, doors, HVAC, etc.) and renewable energy improvements (solar etc.)Energy improvements include windows, doors, roof, HVAC, water heaters, etc.
The credit is up to 30% of the cost of replacing these items with high efficiency products in the form of a tax credit ($1,500 maximum). All products must be installed by Dec 31, 2010.
Here is a quick summary.
Windows and Doors - 30% of material cost - no labor
Roof - 30% of material cost - no labor
HVAC - 30% of materials and labor
Water heaters - 30% of materials and labor
The other area is for adding renewable energy systems and includes solar panels, wind turbines, geothermal heat pumps, solar water heaters, etc. There are a few differences with these including no cap on the credit earned, and they don't have to be installed until Dec 31, 2016. All of these earn a credit up to 30% of materials and labor, no cap.
Remember, this is a credit not a deduction so it directly reduces your tax bill by the amount earned. Make sure to keep your receipts and talk to your accountant. Also, there is not an income limit with any of these. Also, in many cities like Austin, TX where we are located the local government offers more incentives as well, such as solar panel rebates.
Please see the link below for more detailed information.
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
We hope you found this helpful
Tuesday, October 6, 2009
Air Conditioning - Bigger is not better!
Hello again from Olson Defendorf Custom Homes
Today we are talking about air conditioning. Bigger is not better! We will tell you why an oversized air conditioner isn’t better for you in comfortable indoor temperatures and monthly electric bills.
Clammy home
In our hot and humid climate here in Austin, where your air conditioner can run from March-April until November-December, the most important goal is to remove humidity from inside your home. Removing humidity creates drier air, and drier air is easier to cool and feels more comfortable. The way an air conditioning unit removes humidity from your home is by staying on. The coils get cold and remove all of that nasty moisture. An oversized unit can’t dehumidify the air because it only comes on for a short period of time, blasts arctic air, and then shuts off. This is called short cycle.
Monthly utility bills
When an oversized air conditioner short cycles it draws a huge amount of electricity every time the compressor starts up. Once it is running the electric use is minimal. It’s the start up that uses the most energy and increases your electric bill. When you unit is constantly coming on, blasting cold air, and then shutting off it is drawing much more energy that a properly sized unit would use. A properly sized unit will come on fewer times during the day and stay on longer, using less energy and lowering your electric bill.
So now you know what not to do. Here are some pointers to make sure you get the right sized air conditioner and get the most bang for your buck.
1. Make sure your builder uses the Air Conditioning Contractors of America’s Manual J to calculate how much cooling you need for your home. The old way of sizing A/C units was based on square footage. This method is outdated, and is a main reason for having oversized units. Manual J accounts for square footage, ceiling heights, window type, window locations, insulation, orientation of the house, number of occupants, etc. to determine the right size.
2. Be wary of the lowest bid. You might get a cheap upfront bid because the contractor isn’t spending the time to calculate the Manual J, but it will not pay off in the long run. Usually you get what you pay for in air conditioning.
3. Check duct leakage. Air flow can be restricted for many reasons, but one of the biggest problems is leakage from joints in the ducts themselves. On older homes, Troy and I have seen over 50% leakage on some homes! The City of Austin requires a blower duct test per code to make sure your ducts are sealed.
4. Get a higher efficiency unit (SEER – Seasonal Energy Efficiency Ratio). The State of Texas requires a minimum 13 SEER when replacing or installing new units. The higher the SEER the more efficient your system. We always put a 14 SEER with R-6 ducts. You can upgrade up to a 16, 18, 20 SEER. We also recommend looking at a two stage system. You can have a multi-stage blower and even a multi-stage compressor. These can significantly lower your electric bills.
Lastly, let’s talk summers. Summers can be brutal in Texas, especially in Austin 2009 where we had 68 days over 100 degrees; many were record breaking 105-106 degree days. Your air conditioner should be sized to cool around 23-25 degrees below the exterior temperature. On a 106 degree day this would mean a properly sized home should keep the interior temperature at 81 degrees during the heat of the afternoon! A good system in Austin is sized to keep your home 75 degrees when it is 99 outside.
We would like to thank Home Energy magazine and Marble Falls HVAC for their contribution to this blog.
Hopefully this blog enlightened you on your air conditioning system. Now you can impress your friends at the next party with all of your A/C knowledge! Let us know if you have any questions.
Today we are talking about air conditioning. Bigger is not better! We will tell you why an oversized air conditioner isn’t better for you in comfortable indoor temperatures and monthly electric bills.
Clammy home
In our hot and humid climate here in Austin, where your air conditioner can run from March-April until November-December, the most important goal is to remove humidity from inside your home. Removing humidity creates drier air, and drier air is easier to cool and feels more comfortable. The way an air conditioning unit removes humidity from your home is by staying on. The coils get cold and remove all of that nasty moisture. An oversized unit can’t dehumidify the air because it only comes on for a short period of time, blasts arctic air, and then shuts off. This is called short cycle.
Monthly utility bills
When an oversized air conditioner short cycles it draws a huge amount of electricity every time the compressor starts up. Once it is running the electric use is minimal. It’s the start up that uses the most energy and increases your electric bill. When you unit is constantly coming on, blasting cold air, and then shutting off it is drawing much more energy that a properly sized unit would use. A properly sized unit will come on fewer times during the day and stay on longer, using less energy and lowering your electric bill.
So now you know what not to do. Here are some pointers to make sure you get the right sized air conditioner and get the most bang for your buck.
1. Make sure your builder uses the Air Conditioning Contractors of America’s Manual J to calculate how much cooling you need for your home. The old way of sizing A/C units was based on square footage. This method is outdated, and is a main reason for having oversized units. Manual J accounts for square footage, ceiling heights, window type, window locations, insulation, orientation of the house, number of occupants, etc. to determine the right size.
2. Be wary of the lowest bid. You might get a cheap upfront bid because the contractor isn’t spending the time to calculate the Manual J, but it will not pay off in the long run. Usually you get what you pay for in air conditioning.
3. Check duct leakage. Air flow can be restricted for many reasons, but one of the biggest problems is leakage from joints in the ducts themselves. On older homes, Troy and I have seen over 50% leakage on some homes! The City of Austin requires a blower duct test per code to make sure your ducts are sealed.
4. Get a higher efficiency unit (SEER – Seasonal Energy Efficiency Ratio). The State of Texas requires a minimum 13 SEER when replacing or installing new units. The higher the SEER the more efficient your system. We always put a 14 SEER with R-6 ducts. You can upgrade up to a 16, 18, 20 SEER. We also recommend looking at a two stage system. You can have a multi-stage blower and even a multi-stage compressor. These can significantly lower your electric bills.
Lastly, let’s talk summers. Summers can be brutal in Texas, especially in Austin 2009 where we had 68 days over 100 degrees; many were record breaking 105-106 degree days. Your air conditioner should be sized to cool around 23-25 degrees below the exterior temperature. On a 106 degree day this would mean a properly sized home should keep the interior temperature at 81 degrees during the heat of the afternoon! A good system in Austin is sized to keep your home 75 degrees when it is 99 outside.
We would like to thank Home Energy magazine and Marble Falls HVAC for their contribution to this blog.
Hopefully this blog enlightened you on your air conditioning system. Now you can impress your friends at the next party with all of your A/C knowledge! Let us know if you have any questions.
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