It’s a situation every homeowner faces eventually: the day your old water heater calls it quits. Whether you’re standing in a puddle or planning ahead before that happens, understanding your water heater replacement options can save you time, money, and stress.

For Colorado homebuyers, choosing the right system can make a big difference in comfort and energy costs. Here’s a simple breakdown of what to know before replacing your water heater and how to find the right fit for your home.

The Two Main Choices: Tank vs. Tankless

When it’s time for water heater replacement, most people start with the classic question: Do I stick with a tank or upgrade to tankless?

Tank water heaters are the traditional choice — large, insulated cylinders that store and heat water all day long. They’re familiar, relatively affordable to install, and straightforward to replace if your existing setup already uses one. But they also have downsides: tanks continuously use energy to keep water hot, even when you’re not using it. Over time, that “standby loss” can add up on your utility bills.

Tankless water heaters, on the other hand, heat water only when you need it. Instead of storing hot water, they activate when you turn on a faucet or shower, running cold water over a heat exchanger. That “on-demand” system is why they’re sometimes called instant water heaters.

Because they only heat water as needed, tankless systems tend to be more energy efficient. That’s a major plus for Colorado homeowners looking to lower monthly costs. They’re also compact, mounting neatly on a wall instead of taking up floor space.

However, tankless units come with higher upfront costs, and installation can be more complex. Homes converting from a tank system may need new venting or larger gas lines. And while they’re great for smaller households, larger families might notice a drop in water temperature if multiple showers, laundry, and the dishwasher run at once.

Exploring High-Efficiency Water Heaters

If you’re set on keeping a tank but want better performance, high-efficiency water heaters are worth a look. These models use advanced combustion and heat recovery technology to make the most of the energy they consume.

A standard gas water heater might operate at around 80% efficiency, while a high-efficiency model can reach 90% or more. That means less heat escapes through the vent and more goes into your water, translating to faster heating and lower energy waste.

The trade-off? Cost and complexity. HE units are more expensive to install and often require professional setup to ensure proper venting. But for long-term homeowners or energy-conscious buyers, the investment can pay off in reduced utility bills over time.

Considering Solar Water Heating Systems

For the environmentally minded, solar water heating systems are another replacement option. These setups use rooftop solar panels and a circulation system to preheat water before it enters your tank or tankless unit.

In sunny states like Colorado, this can offset a significant portion of your water heating costs. Many homeowners use solar as a supplement, letting the sun do most of the work while a conventional or tankless unit provides backup heating on cloudy days.

The main limitation is predictability: no sunlight means no solar gain. Installation also tends to cost more upfront, though some homeowners offset that with energy rebates or tax credits.

How Long Water Heaters Last

Another factor for buyers to keep in mind is lifespan. A standard tank water heater usually lasts 8–12 years, while tankless systems can run 15–20 years with proper maintenance. High-efficiency and solar systems vary based on usage and upkeep.

If you’re buying an older home, ask when the water heater was last replaced and look for signs of age such as rust and slow heating times. Replacing an outdated unit before it fails can prevent water damage and make your home more energy efficient.

Choosing the Right System for Your Home

There’s no single “best” water heater for every buyer. The right choice depends on your household size, water usage habits, and budget.

• Go with a tank if you want a lower upfront cost and straightforward installation.

• Consider tankless if you prioritize energy efficiency, space savings, and long-term value.

• Look into high-efficiency if you plan to stay in your home and want lower utility bills.

• Explore solar if sustainability and long-term savings are important to you.

Whatever route you take, the key is to understand your water heater replacement options early before an emergency forces a quick decision.

The Bottom Line on Water Heater Replacement

A water heater might not be the most exciting part of your new home, but it’s one of the most important for daily comfort. By learning the basics of tank, tankless, high-efficiency, and solar systems, homebuyers can make confident, informed choices that balance cost, efficiency, and convenience.

When you know your options, you can turn what feels like a stressful replacement into a smart investment and start your new home journey with hot water ready when you need it.

Let’s face it – we need our water heaters. Whether it’s for those nice warm showers or sparkling clean dishes, most of us have our water heater working double time on a daily basis. It follows then that regular maintenance is essential for keeping your water heater running efficiently, preventing costly breakdowns, extending its lifespan, and ensuring a consistent supply of hot water. While you can certainly hire a professional to carry out periodic water heater maintenance procedures, it’s actually a very manageable process to do on your own.

Of course, both tank and tankless water heaters benefit from proactive maintenance. But due to their contrasting designs and components, their maintenance routines do differ in certain ways. Let’s discuss!

Tank Water Heaters

These are the most common type of water heater. They can either be gas powered or electric, and (as their name implies) store a large amount of water in a tank. After continual use overtime, sediment can begin to settle at the bottom of the tank causing decreased efficiency and higher energy bills. And corrosive elements in the water can attack the metal components within the tank leading to potential leaks and damage. That is why giving your heater a little TLC seasonally is so important.

Tankless Water Heaters

Contrary to tank-style, these devices heat water “on demand.” When hot water is needed, water is channeled through the heater, it is heated to a designated temperature, then off it goes to your desired location (check out the diagram below). You don’t have to worry about sediment buildup in a water tank (because there is no tank), but you do have to worry about potential mineral buildup throughout the piping and heating chamber.

Standard Water Heater Maintenance

Although tank and tankless heaters have their distinct differences, some fundamental maintenance steps apply to both:

Visual Inspection – Let’s start with the easy (and somewhat obvious) items. It’s advisable to simply check in on your water heater on a regular basis. This means giving it a visual inspection to ensure that there are no defects or leaks. If you have an older gas water heater, you can check to make sure that pilot light is ignited and burning steadily. However, most newer water heaters no longer have standing pilot lights, instead using an electronic igniter.

Be sure to look at the the combustion air intake and flue to make sure there is no damage or obstructions. Also pay attention for any strange noises or odors. And don’t forget to keep your heater and the area around it clean!

Test The Temperature – Take a look at the temperature on your water heater’s thermostat. Then, using a water or kitchen thermometer, test the max temperature coming out of your faucet. Make sure it correlates with the thermostat setting. *Note that the normally acceptable temperature range is 115ºF to 130ºF. Temperatures over 130ºF can present a scalding hazard. This picture below shows a water temp that is way too hot!

Check the TPR Valve – The Temperature Pressure Release (TPR) Valve is designed to release water if the temperature or pressure in a water tank exceeds safe levels. Without a pressure release function, the pressure can buildup inside the appliance and lead to damage, and in worst cases, a water heater explosion. So needless to say, you definitely want this thing working properly! This mechanism should be tested annually.

To test it, place a bucket under the discharge pipe and lift the valve’s tab to release some water. If water flows freely and stops when you release the tab, the valve is working correctly. If you lift the tab and no water comes out or it continues to run once closed, the valve needs to be replaced.

Now that we’ve established the related maintenance items between the two heater types, let’s examine the differences.

Before we move on, please note that in the following sections, we touch on some more advanced maintenance. These steps can normally be performed by a qualified plumbing specialist. However, if you are comfortable with more advanced DIY maintenance tasks, you may consider doing these steps on your own!

Advanced Tank Water Heater Maintenance

As we discussed above, the main defining factor of the tank-style heater is that it stores large amounts of water, and its maintenance focuses on managing sediment buildup and protecting the tank from corrosion. So how do we do that?

Anode Rod Inspection and Replacement – The sacrificial anode rod (usually made of zinc) is crucial for preventing the tank’s metal parts from corroding due to water acidity, alkalinity and bacteria. The rod attracts corrosive elements, which causes it to deteriorate, instead of the tank itself. This rod should be removed and inspected annually. Before removing it, you should first shut off the power or gas. You should also shut off the supply lines leading to and going from your water heater. 

If the rod is less than a half inch thick or has excessive mineral buildup, it should be replaced. When re-inserting the rod into the water heater, make sure to apply pipe joint compound or wrap plumber’s tape around the threads to ensure a secure seal.

Flushing the Tank and Removing Sediment – It is recommended to flush your water heater once a year, in order to mitigate the excessive buildup of sediment. Again, don’t forget to shut off the power supply or gas, and cut the water supply. In order to drain the tank, you must connect a hose to the drain valve at the bottom of the tank.

You can drain the water into a bucket or a nearby floor drain, if available. Once empty, close the drain valve, add a gallon of vinegar, and let it sit for several hours. Afterward, fill the tank back up with water, and subsequently drain the water/vinegar mixture out of the tank.

Finally, once the tank is completely flushed, you can seal up the drain valve and fill the tank back up. Make sure you turn on a faucet in the house so that any excessive air pockets can escape the tank and water lines.

For a more in depth look at anode rod maintenance and performing a tank water heater flush, check out this informative video!

Advanced Tankless Water Heater Maintenance

As stated above, tankless-style water heaters with not have the issues that come along with stored water. Their primary maintenance focus is on preventing and removing mineral scale buildup within the heating chamber and pipes.

Descaling and Flushing the System – Tap water contains minerals like calcium and magnesium that can build up on and erode the walls inside the water heater, blocking water flow and decreasing efficiency. Therefore, it is recommended to flush your appliance at least once a year (maybe even every 6 months if your water supply is significantly hard).

We can’t say it enough – make sure to cut off the gas or power before flushing out your system! You should also close the water lines to and from the heater before servicing. Next you will want to connect a hose to each service valve (shown above). The hose attached to the “cold water in” line should connect to a submersible pump in a bucket, and the hose attached to the “hot water out” line should be emptying into the same bucket.

Add about 3 gallons of descaling solution or white vinegar to the bucket, then turn on the pump to circulate it through the appliance. This process should continue for 30 minutes to an hour. When the flush is complete, seal up the service valves, open the supply valves, and turn the power or gas back on.

Cleaning Water and Air Filters – Most tankless units will have water and/or air intake filters, as well. These should be inspected and cleaned or replaced every 6 months.

For more info, check out this great tutorial on how to flush your tankless water heater system.

Inspecting Water Heaters

Water heaters are one of the big ticket items we look at during our standard home inspections. Our inspectors understand the importance of these systems, and give them the thorough evaluations they deserve.

First of all, we are going to conduct a visual inspection. Any signs of damage or leaking will certainly be noted. The inspector will check for any apparent corrosion, and whether or not a TPR valve is present with a properly sized discharge pipe.

We also want to know if the water is being properly heated. The inspector will test the max temperature of the water from a faucet inside the house, making sure it correlates with the settings on the water heater thermostat. If there are noticeable issues that aren’t apparent from a visible inspection, the inspector will recommend further evaluation from a plumbing specialist.

Our inspectors also want to make sure the environment around the heater is safe and free of any harmful fumes. So they use specialized tools to check for gas leaks at the gas supply lines. They also to make sure the exhaust is exiting the living space properly through the flue by testing for carbon monoxide (as shown below).

Are You In Need of a Home Inspection?

If you are closing on a home in the Colorado Front Range, we hope that you will consider Scott Home Services for your home inspection services! Feel free to visit us online to learn more or contact us to schedule your inspection services today!

It has happened to the best of us. The fateful day where you finally have to change out that old dinosaur of a water heater living in your basement. This is hopefully because you knew it was nearing its end, rather than waking up to a basement full of water!

Whatever the cause, water heater replacement isn’t ever a fun thing to do. However, there are a few different options that must be considered before you make an investment in your home. Here are a few things to consider.

To Tank Or Not To Tank (Do I Need a Tankless Water Heater?)

Often times, people go with the cheapest option for a water heater replacement, which is a standard tank water heater. But there are a ton of advantages to purchasing a new tankless water heater system instead. Tankless units come in both gas and electric models, and can be a direct replacement for a standard tank unit.

Most tankless units mount on a wall and are roughly the size of a medium suitcase. When a faucet or fixture is turned on and hot water is needed, the tankless unit immediately activates, running cold water over a heat exchanger to increase its temperature.

The system will consume only the amount of energy relative to the amount of hot water demanded at a faucet or fixture. That is why these units are often referred to as “instant” or “on-demand” water heaters. When using an older tank style water heater, you end up heating water in your unit all day long regardless of if you are using it or not. On the contrary, tankless water heaters only heat water when needed or called for.

Water Heater Replacement with a Solar Hot Water System

Advances in solar technology and storage systems make it a great time to consider installing a solar hot water system.

The systems from the ’70s have come a long way in many respects. However, the concept remains the same – pull some energy from that big orange thing in the sky and convert it into heat for your hot water system.

Most solar hot water systems consist of a number of solar panels mounted outside; piping and a pump system to circulate a water or glycol mixture through the panel; and a special storage tank inside the home that collects the circulated liquid, which then heats water in that tank.

Typically, another conventional water heater is present for cloudy days, but the majority of the heating is done by the sun. We have even seen tankless units acting as the backup source. But the incoming water is pre-heated by the solar system, and the tankless unit only does the small amount of work to raise the temps up to your desired level, if needed.

Comparing Water Heaters: Pros and Cons

Standard Efficiency

If you are looking for the cheapest up-front price and installation cost, the best option is a standard efficiency tank water heater. These types of systems have relatively straightforward venting configurations and plumbing attachments. Therefore, it’s a feasible installation job for the savvy DIYer. Additionally, it has minimal electrical components. So finding parts and service providers will usually come at a reasonable price.

On the other hand, as its name suggests, this type of water heater is going to be the least efficient option. These heaters can lose up to 20% percent of the heat they produce through exhaust. They also require access to outdoor combustion air, in order to operate safely and properly.

High Efficiency

As you may have guessed, the high efficiency (HE) water heater is going to be more energy-efficient than the standard option. It is configured to optimize its combustion process and extract as much energy as possible during the process, using 90% or more of its generated energy. A more efficient system also means that it will heat water faster than its standard counterpart. HE water heaters help you to minimize wasted energy over time, and thus save money in the long run!

However, they are more complex devices than standard efficiency heaters. So they are going to be more expensive to purchase and install. It is crucial to have these systems installed and operating correctly. This makes it more necessary to hire a licensed pro to install and maintain your HE heater.

Tankless

The tankless water heater option is going to be even more energy efficient, as it only initiates the heating process when hot water is needed (as discussed above). So you’ll be looking at long-term energy and money savings. It also takes up much less space than a tank water heater, which could be an ideal option if you have limited utility room space. Another tankless pro is that they generally have longer life spans than tank systems. With the proper maintenance and care, you can expect your tankless water heater to last you 15-20 years.

On the downside, tankless heaters usually cost more to purchase and install than tank heaters. Also, its “on demand” quality means you won’t have your heated water as quickly as with an HE water heater. If you are converting from a tanked water heater, you generally have to change your venting type and might even need a larger gas line which can quickly increase costs.

Additionally, due to its size, a tankless system might not be able to provide sufficient heated water for multiple, simultaneous usages in large homes. For instance, if you are taking a shower, running the dishwasher and doing a load of laundry all at the same time, a tankless may not be able to provide sufficient heat to all 3 areas at once. You have to make sure to size your unit property to your home size.

Solar

The best part about solar water heating is that all you need is the sun. So if you live in an area that receives substantial sunlight, you could be getting your hot water for free! In addition, solar could be used to power other components of your home. This could effectively help you cut lots of energy costs over time.

However, the very feature that sets it apart from the other systems also acts as its primary flaw. Simply put- no sun equals no solar energy. So if it’s particularly cloudy or overcast, you might not receive enough solar energy to heat water to your desired temp. This is why a supplementary water heating device is recommended along with the solar. You might have also guessed that installation costs for solar panels can be quite costly.

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It’s true that a standard efficiency tank unit may cost you the least to install. But by taking the time to research your options and weigh the overall cost of ownership, you may find that upgrading to a high efficiency tank unit, a tankless unit, or even a solar hot water system might be right for you. We recommend that you take the time to explore these options with your local plumbing expert.

What is Involved with Water Heater Installation?

In reality, a water heater is one of the simplest appliances in your home. You have cold water in, hot water out, and a power source.  If you have an electric unit, there is usually a 220V connection to your unit.  If it’s a gas unit you have a natural gas or propane pipe connecting to the gas valve built into the unit.

Water heater replacement involves shutting off the water supply, disconnecting the power connection, draining excess water, and swapping in the new unit. Overflow drain pans are recommended on all tank units with new and replacement installations.

If you are upgrading to a tankless or high-efficiency unit, there may be additional considerations related to venting, proper gas line sizing, etc. It’s not as straightforward as a standard tank water heater, so it’s best to hire a professional. The same, of course, goes for the solar water heater configuration.

What is the Best Water Heater System for You?

Unfortunately, there is no one-size-fits-all answer. Each home and each homeowner has unique needs. When considering water heater replacement, it’s all about weighing the pros and cons to make an informed, educated decision.

Explore all options and consider the long-term costs of ownership in your decision. There are many great options and your choice will have long-term impacts on your monthly operating costs and performance of the system.

For more articles and feedback on home maintenance items, visit our Ask Your Inspector section of our website.

Consider Scott Home Inspection for all your home inspection needs! Read more about our Inspection Services.

A TPR Valve, or Temperature & Pressure Release Valve, is a safety device located on a water heater or boiler.

As indicated in its name, this apparatus is designed to release water if the temperature or pressure in a water tank exceeds safe levels. They are critical components of hot water systems and play an important role in ensuring safety.

Why Do I Need a TPR Valve?

When heat is added to water, the water vaporizes and expands. Expansion in an enclosed space, such as a water tank, leads to an increase in pressure.

Without a way to reduce the pressure in the tank, it could continue to build, eventually resulting in a water tank explosion.

Although they are rare occurrences, tank explosions have been known to happen with defective or poorly maintained TPR valves.

While some thermal expansion is normal, excessive expansion can become dangerous very quickly. This is why that a two-inch brass fixture is so essential for in-home safety.

When properly configured, a temperature and pressure release valve should release when the temperature reaches 210°F or 150 pounds per square inch (psi).

In addition to preventing drastic increases in pressure, these safety valves also help to regulate temperature. Modern water heaters and boilers have thermostats that are meant to set a maximum water temp.

But what happens when there is a faulty thermostat that does not properly regulate the temperature? What’s stopping scalding hot water from entering the home and potentially harming its inhabitants?

In comes the TPR valve to save the day, yet again! Once the temperature reaches 210°F or higher, the valve will open to release the heat and cool down the water.

Don’t Forget Your Discharge Pipe!

A discharge pipe must also be attached to the valve. As depicted in the picture below, this is a pipe that extends downward to within 6 inches of the floor. When a TPR valve opens up, it will expel scalding hot water and/or steam.

This is obviously a dangerous scenario for anyone who might be close by. So the discharge pipe must be attached in order to safely redirect the hot water downward and away from any bystanders.

Stay On Top of Your Maintenance

One easy way to prevent water tank issues, is to stay on top of your maintenance. Manufacturers recommend testing the TPR valve at least once a year to ensure proper functionality and no leaks or defects.

Of course, you can hire a pro to take care of these maintenance tasks. But for the DIY enthusiasts out there, click here for a step-by-step guide on how to test your TPR valve.

Home Inspections – Putting the Microscope on TPR Valves

During our standard home inspections, we pay very close attention for properly maintained boilers/water heaters. We are always looking at TPR valves and discharge pipes. If either of these devices is missing or defective, we will be sure to recommend immediate repair.

The same goes for Rental License Inspections. Whether we are conducting a rental inspection in Denver or Boulder, we are always checking for properly configured water tanks.

Both city’s rental license programs make TPR valves and discharge pipes mandatory. (See Section 2.4 in the Denver Residential Rental Program Guidebook or Section 3 in the Boulder Rental Housing License Handbook.)

At Scott Home Services, it is our priority to help families live in safe, healthy, and comfortable homes. So whether it comes to inspecting TPR valves or any other aspect of the home, we are happy to be of service!

If you are in need of a home inspection or rental license inspection, don’t hesitate to contact us today!

Furnaces and water heaters are key elements in any Colorado home. However, being that they are combustion appliances, they can pose safety and health hazards if not configured properly. One of the most common practices in the residential setting is to have these appliances installed in a combustion closet.

When it comes to Denver and Boulder rental properties, there are strict guidelines with regards to combustion closets or rooms. For rental license inspections, it all boils down to safety. A rental property needs to meet a list of standards in order to be deemed safe for its occupants.

Why Are Proper Combustion Closets So Important?

Combustion appliances are, by definition, fuel-burning. They combine a gas supply with oxygen in order to create fire. This reaction, in turn, heats your water and air.

The byproducts of this chemical reaction are carbon dioxide and water. In many cases, if the fire is not receiving enough oxygen, it will produce carbon monoxide, instead of carbon dioxide.

Carbon monoxide (CO) is highly toxic to humans if not ventilated properly. So, it follows that an enclosure with a combustion appliance must be built properly to ensure safe living conditions.

A fuel-burning device needs a source of fresh combustion air and an avenue for ventilation to expel its fumes. If the device does not have unhindered access to fresh air, it may begin to create negative pressure and pull the air it needs through the exhaust piping. Once that air is moving inward through the exhaust pipe, the fumes being produced as a byproduct have nowhere to go but back into the home. Now we have CO making its way into the living space, and that is an obvious problem.

It was common practice in many older homes to put combustion appliances in closets with louvered doors (shown below). The slats in these doors allow the appliance to draw fresh air in from the interior of the home. And if the ventilation flue is installed properly with no obstructions, this configuration should technically work.

However, according to code, using the louvered door method can be hazardous and especially unacceptable in certain locations such as the bedroom or bathroom.

For instance, if a fire were to break out in a bedroom combustion closet, without the proper fire-proofing precautions (i.e. a louvered door), the fire could quickly spread into the bedroom. Or what if a combustion device is located in bathroom closet with a louvered door? If someone turns on the exhaust fan, it could potentially create a backdraft and start to pull CO fumes into the bathroom.

Due to all these potential issues, it eventually became apparent that we needed to establish a standard for combustion appliances and how they are installed in the home.

Combustion Closets, By The Book

As mentioned above, when conducting rental license inspections in Boulder and Denver, inspectors are going to be paying close attention to the location and configuration of furnaces and water heaters. Both municipalities have similar standards. They have adopted the codes established in section 303.3 of the 2021 International Fuel Gas Code (IFGC).

So, can furnaces and/or water heaters be located directly inside bedrooms or bathrooms? No. However, they can be accessible through bedrooms or bathrooms, as long as they are contained in an isolated room or closet.

If a fuel-burning appliance is accessed through a bedroom or bathroom, it must be installed in a room or closet that is completely sealed with weather stripping and a door equipped with a self-closing device. Additionally, the appliance must have its own access to a source of combustion air from the outdoors. Furthermore, its exhaust must also terminate outside the home through its own dedicated piping. When built correctly, these combustion closets should have an airflow system that is operating independently of the living space.

The diagram below illustrates a water heater in one of the most efficient types of sealed combustion closets. Most new furnaces are built with direct ventilation systems (top picture shown above), meaning their intake and exhaust piping are mounted directly onto the appliance. These examples illustrates two different methods for proper combustion appliance configuration.

Utility rooms are commonly located in basements, and there are many basement rental units. It follows that the rental license guidebooks also address these specific living spaces. Any habitable part of the basement unit must be separated from any room containing fuel-burning appliances. According to section 4.2 of Denver’s residential rental program guidebook:

“If a fuel-fired furnace is located in a room that opens directly into an area used for sleeping, the two rooms must be separated by a solid core 1-hour fire-rated door with a smoke seal around it.”

Rental License Inspections

At Scott Home Inspection, we have been offering our rental license inspection services to the Boulder area for 10+ years. And now with the recently implemented Denver residential rental license requirements, we have several certified inspectors who are qualified to offer the same, high quality rental inspection services to the city of Denver.

When observing the combustion appliances in the home, our inspectors will consider a few key questions. Is the appliance functioning properly? Is it installed in a safe, and code-acceptable location? Does it have proper ventilation? Does it have an adequate combustion air supply? Any deficiencies noted at the time of inspection will be called out for repair and/or correction.

Our number one priority is to help Colorado families live in safe, healthy, and comfortable homes. So when assessing a rental property for licensing, our inspectors are as thorough as possible. We observe all aspects of the property as required by the municipality, and provide an unbiased pass or fail assessment.

If you are in need of a rental license, we recommend reviewing the applicable rental license guidebooks (City of Denver or City of Boulder) prior to the inspection.

We hope you will contact Scott Rental Inspections for your next Colorado rental license inspection! For more info, feel free to contact us today!