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What Is An Hybrid Water Heater?

Simplest way to put it, hybrid water heaters are a combination of the tank and tankless conventional hot water heaters. They combine their technology to give you the best of both worlds.
In case of traditional tank water heaters, a fair amount of heat gets wasted due to the fact that the heater heats from the bottom, leading to the air rising through the tank and exiting from the top. While in case of tankless water heaters, evethough the heaters heat the water from the bottom, there is no storage tank and the water flows through the copper pipes. However, tankless hot water heaters have been ciritzed because they dont store water and provide a continuous supply of hot water to multiple places in the house.
The technology for the new hybrid hot water heaters varies based on the models. Eternal hybrid, one of the few hybrid hot water heaters in the market, use multiple passes of heat and water to warm up efficiently. The hot water heater has around 44 pipes that heat up, and the water flows around them for quickly heating. Unlike, instant water heaters (tankless water heaters), the hybrid water heaters have a small reservior to hold some of the water for all time, and hence you never run out of the supply of hot water.
This is one of the technologies hybrid water heaters use. General Electric provide a hybrid electric water heater that has the skillset to absorb the heat from the air within and transfer it back to the water. This provides a high efficiency rate and minimizes the loss of the energy. Hence, as one could see, one of the most reason for people to buy hybrid hot water heaters is the efficiency. Almost 1/5th of the energy consumed by normal household arises through the energy consumption of a hot water heater. Water heaters are known to be notorious when it comes to inefficiency. As a result, buying an efficient hot water heater became the hype for the new market.
Due to the fact that hybrid water heaters save so much on the energy loss, companies have claimed that their hybrid hot water heaters are upto 90 to 95 percent efficient.
But hybrids also have their downsides. Because the heat pump is usually on top, they need as much as 7 feet clearance from floor to ceiling. You'll also need up to 1,000 cubic feet of uncooled space to capture enough heat from the air, along with a condensate pump (about $150) if there's no drain nearby. Hybrid heaters are noisier than conventional storage-tank heaters, exhaust cool air, and can rob some heated air in winter.
There are manufacturers who have worked towards eliminating those negatives and have succesful created products that do not produce much noise.
Whether your water heater needs to be replaced or if you just want to be greener -- both in your house and in your wallet -- consider replacing your water heater with a hybrid water heater.