Electric tankless water heaters are growing in popularity among new and remodeled homes. Although marketed as an energy-efficient alternative to traditional storage water heaters, electric tankless water heaters may actually cause more trouble than relief.

The high demand of electric tankless water heaters leads to increases in Baldwin EMC’s purchased power cost. Those costs are currently being passed on to all Baldwin EMC’s members.

Because of the effect these devices have on Baldwin EMC’s system and its members, the cooperative has a rate program specific to electric tankless water heater users.

Please note, gas-powered tankless water heater users are not affected.

Baldwin EMC will present electric tankless water heater users with the following options:

Option One

Remain on your current electric rate and replace your electric tankless water heater with a standard electric storage water heater. Baldwin EMC will order and cover the cost of the water heater and the cost of the pre-approved contractor installation.

Option Two

Remain on your current electric rate and replace your electric tankless water heater on your own without assistance from Baldwin EMC. Baldwin EMC will rebate your cost up to $1,000 (in the form of a Baldwin EMC electric bill credit) upon receipt of approved invoices and inspection.

Option Three

You may also choose to continue using your electric tankless water heater and be placed on the new rate.

Here’s a look at why electric tankless water heaters may not be the best choice:

Their electricity demand is huge.
When an electric tankless water heater fires up to heat water, it requires a large amount of electricity: as much as 36,000 watts of power. That’s eight times more than the 4,500-watt demand of a traditional storage water heater.

The equipment used to support them may not be sufficient.
Many times a home’s wiring and the utility company’s equipment is not suitable for the load. That’s why homes that use electric tankless water heaters (and their neighbors) often have issues with flickering or dimming lights.

New equipment (transformers, meters, etc.) may have to be installed.
In some instances, Baldwin EMC will have to upgrade the equipment in place at a home to accommodate an electric tankless water heater — at the expense of the homeowner.

Baldwin EMC wants to help you make the best decision for your home. If you’d like to discuss electric tankless water heaters or the new rate program further, please call us at (800) 837-3374 or (251) 989-6247.

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