[bishgan]

Hi,

I'm looking for some advice on how to proceed with replacing our hot water system. I've read differing opinions, so thought I'd try here.

We recently moved into a new home. We knew our hot water system wasn't in great condition, but shortly after moving in we determined we'd need to update it. We are currently a 2 person household living in the Northeast.

Our current system is this: we have an oil boiler with an internal coil and a 40 gal storage tank for the hot water. The boiler was installed in 2001, and is in relatively good condition as far as we can tell (it's been serviced regularly, although I don't know very much about the life of boilers or their efficiency as they age). The storage tank is what is in need of replacement (it is rusting inside and is producing rust colored water now).

We also have natural gas coming into the home for the gas stove upstairs. The entering lines are not far from the current boiler/storage tank.

My question is this: what is our best option in terms of replacing the hot water system, in terms of efficiency and money (upfront vs. long term)? I've read differing opinions about indirect water heating with an older boiler. Because it needs to run in the summer and oil is so expensive, that seems costly. However people say that the more efficient the boiler, the less your are spending on oil. Is a 2001 boiler old/very inefficient? How would I determine how efficient it is?

Then in terms of the storage tank, we currently have a John Wood JW5 40 gal "storage booster" tank, which has a 5 year warranty and seems to cost somewhere between $600-900. There appear to be costlier options that are labeled as "indirect water heaters" that have lifetime warranties (Triangle Tube, for example, for about $1100). Are the John Wood storage booster and these indirect heaters the same thing?

Our alternative option is to install a regular natural gas water heater, getting rid of the indirect water heating all together. Is this a better option? The cost of the tank seems roughly equivalent to getting a storage tank/indirect water heater, but I know the system "recovery time" is not as good (although for a 2 person household this isn't a HUGE concern). Also, in terms of installation, do you think one option would be costlier than the other (i.e. labor intensive for the plumber and thus more expensive)?

Any input would be greatly appreciated! I'm just learning about all of these things, so hopefully I'm using the correct terminology for all of this to make sense. Any questions, please let me know and I'll try to look into it!

Thanks in advance
Caroline