While they are technically more efficient than standard storage tank models, they still may not be worth the investment. We have alway seen these as situational appliances. Just because they are technically more efficient, it doesn’t mean that it will save you money. This is mostly due to the high initial cost so if you can find a great deal or hefty rebate, it may be worth doing. On a safety note: Most of the time, home owners replace older “natural draft” water heaters with these sealed combustion appliances. A sealed combustion appliance has a much lower chance of carbon monoxide poisoning due to changing pressures in the home.
The Folks at ConsumerReports have summed it up nicely in this video.
If you don’t have a subscription to ConsumerReports, we urge you to consider it. They have a tremendous amount of product testing data that will help you choose the right appliances for your budget and your home.