Energy Star qualified storage tank gas water heaters - why almost as expensive as tankless? (stoves, plumbing)

[Pink Jazz]

I was wondering, it seems that Energy Star qualified storage tank gas water heaters (those with an energy factor of 0.67 or greater) seem almost as expensive as tankless units. I understand that to achieve that level of efficiency for a storage tank unit, either power venting or an automatic flue damper will be required, which adds to their cost. Why do they have to be almost as expensive as tankless units though? What is the point if you can get even greater efficiency with a tankless unit for not much more?

Note that the initial energy factor set in 2009 for Energy Star qualification was 0.62, however, since September 2010 it has been raised to 0.67. So this means that even though your water heater may have an Energy Star label on it, it actually doesn't qualify for Energy Star under the current version of the standard, even though it may still qualify for energy rebates in some areas, as well as earning one LEED point. We have a 0.62 EF Bradford White M45036FBN unit, and I have seen other homes in our neighborhood that have the same model with an Energy Star label on it.

[Big George]

Gas heaters, and stoves, are more expensive than electrics. Not sure all the reasons, but I just know that it's true.

[Pink Jazz]

Originally Posted by Big George

Gas heaters, and stoves, are more expensive than electrics. Not sure all the reasons, but I just know that it's true.

I'm not comparing against electric water heaters, but against gas tankless water heaters.

[Coldjensens]

They will sell some because some people are simply traditionalists. Tankless seems new to them so they do not trust it. Just like some people still put copper plumbing in a house instead of PEX. No reason for it, not as good a product, not cost effective, but hey it is tried and true (althoguh Tankless and PEX have been around for decades, most people think they are relatively new.).