When selecting a new water heater, consider both the, 'highest energy factor' and the 'first hour rating.' You'll find both of these ratings on the product energy guide that's attached to every water heater. The highest energy factor determines whether the water heater is the correct size for your household needs, in regards to energy efficiency. An undersized unit will work overtime to supply hot water and an oversized one will be too costly to operate. The first hour rating is the amount of hot water heater will supply in the first hour of operation. Approximate how many gallons of hot water your house uses during peak times. Compare this amount with the first hour rating on the product energy guide. The rating should match or come within two gallons of your peak demand.
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