Homeowners frustrated with high energy costs can take their savings “to the tank” with a unique kind of water heater.

People curious about alternatives to conventional electric water heaters may jump to consider tankless water heaters. But, while electric tankless water heaters can be a good option in certain instances, such as in confined spaces, they can ultimately cost more to install and operate.

Tankless water heaters do not store hot water, like conventional water heaters do and keep heated until the water is used. Yet tankless water heaters can require more than four times the electricity compared to a conventional water heater.

Many homes typically require an upgraded service panel to accommodate the electricity required to run the tankless water heater, said Brian Hawk, Noble REMC energy advisor. The transformer providing power to the house also may require an upgrade, he added, which can cost even more.

“Ads don’t tell you what it costs you to heat that water,” Hawk said. “If you have to upgrade your service panel and electrical lines, that’s a huge expense that can run into the thousands.”

Homeowners seeking a way to save on energy costs should instead consider a heat pump water heater, said Hawk. Heat pump water heaters essentially move heat from one place to another, leading them to be two to three times more efficient than standard water heaters, according to the U.S. Department of Energy.

Noble REMC sells heat pump water heaters directly to members. The co-op applies the $800 Power Moves© heat pump water heater rebate immediately to the water heater’s price. An additional 30% tax credit may provide more savings, though people should contact their tax professional for details and to determine tax credit eligibility.

“We want homeowners to get that initial savings right away with a heat pump water heater,” Hawk said. “We’re really trying to support our members and get more heat pump water heaters into homes where they would be a good fit.”