What is the Energy Factor for Tankless Water Heaters? Do They Qualify for Any Tax Credits?

Tankless water heaters are now being used worldwide for the purpose of getting and using hot water at the time of the use. People often wonder that how does tank-less water heaters get the hot water ready for us when there is no tank behind it to store the hot water.

I’ll tell you how it works and what is the procedure and energy source used to make the water hot at the very moment. There are two ways with which a tank-less water heater can make the water hot, either by an electric source or by some kind of fuel.

The energy factor of a tank-less water heater determines the energy efficiency of a heater. The amount of hot water produces and the fuel costs incurred per unit determines the energy factor of a heater. Normally there are energy factors given on the guides of the heaters.

The higher the amount of water produced by a heater with the lowest possible per unit cost ensures that the heater’s energy factor is higher which means that the heater’s efficiency is also higher and it uses less energy to produce more hot water.

The Consolidated Appropriations Act was signed on December 15 2015.

In which it was decided to extend the date for the tax credit on tank-less water heaters bought between January 1 2015 to December 31st 2016.

Which means that if you buy the heater right now or before 31st of December 2016 you will be saving up to $300 from tax credit on the purchase of every heater whose energy factor is at least 0.82.

The government has proposed this act because they want to promote such energy saving appliances so that more and more people buy them and energy could be consumed at the maximum possible level.