Electric Storage Water Heaters
What to know
Homeowners in areas without gas service who need an affordable, straightforward water heater. Good for mild climates, smaller households, or situations where a heat pump cannot be installed due to space constraints. Also a practical choice for secondary installations such as point-of-use or vacation homes.
Large households with high hot water demand, as recovery time is slow. Not the best long-term value for anyone who could install a heat pump water heater, which cuts operating costs by 50-70%. After DOE 2029 standards take effect, electric resistance tanks over 35 gallons will no longer be manufactured.
Advantages
- Low upfront cost, typically $400-$1,000 for equipment
- No combustion, no venting, no carbon monoxide risk, so it can be installed in any space
- Simple installation with just a water supply and electrical connection
- Very quiet operation with no moving parts other than the thermostat contacts
- Available in a wide range of sizes from 20 to 80+ gallons
Trade-offs
- High operating cost because electric resistance converts electricity to heat at a 1:1 ratio
- Slow recovery rate compared to gas, a 50-gallon tank takes about 60-80 minutes to fully reheat
- Standby heat loss costs money 24/7 even when no hot water is being used
- Requires a 240V dedicated circuit, limiting placement options in some older homes
- No hot water during power outages
Is this the right type?
50-gallon models
| Model | Brand | UEF | FHR | Height | Est. Cost/yr |
|---|---|---|---|---|---|
| PROE50 T2 RH95 | Rheem | 0.93 | 63 gal | 58.63" | ~$615 |
Installation requirements
What installation involves
Electrical: Dedicated 240V, 30A circuit with 10-gauge wire. Smaller point-of-use units may use 120V circuits. A double-pole breaker in the electrical panel is standard. Space: Floor-standing tank roughly 18-24 inches in diameter and 46-60 inches tall. Can be installed in closets, utility rooms, garages, or basements. No combustion air or venting clearance needed. Other: T&P relief valve with discharge pipe required. Expansion tank may be required in closed water systems per local code. Timer or smart controls can reduce operating costs by shifting heating to off-peak hours where time-of-use rates apply.
Equipment typically costs $400 - $1,000. Installed cost including labor and materials: $800 - $2,000.
- Sizing guide Find the right capacity
- Replacement cost guide Equipment, labor, and hidden costs
- Heat pump vs electric tank Why the upgrade makes sense