If your existing water heater is any older than 10 years, buying a new one can take 20% off your energy bills -- which could be as much as $700 over the life of the product. Such savings wouldn't be adequate by themselves as reason to replace a water heater, though. You spend hundreds on a new unit and you don't want to replace it before it's time.

 

How do you know if your water heater is ready for replacement, though? Certainly, you'll know when there's a leak in the tank itself. It'll put a puddle of water on the floor (you will need to make sure that the leak isn't from a hose or another connector). A heater with a leaky tank can't be repaired, and will need replacing. Other problems may not be as apparent.

 

What appears to be a serious problem may also end up easily resolved. According to Blake Plumbing, you'll need a professional to take a look. Faulty pilot lights, failed heating elements or burners, faulty valves or broken thermostats all tend to be easy to replace.

Anticipating the need for replacement

If your heater is in a basement or outdoor area where flooding from a failed tank can't do much harm to your home's structure, you can use your heater as long as it will go. If the heater is inside your house in a part where a leak could cause structural damage, you'll want to get a replacement before it's absolutely necessary.

 

If you get good, soft water in your area, and you've maintained your heater well with regular inspections, you can expect your heater to last longer than average. In general, though, many homeowners find that simply going by the length of the guarantee can be sensible. If you have a 12-year guarantee on your water heater, replacing at 12 years will work out well. It's a safe bet.

If you plan to replace, consider the options

A tankless water heater installation can be more accommodating of unexpected demand around the house for hot water -- such as when guests arrive. A solar water heater can be a good idea if you get lots of sunshine and have relatively modest needs.  It can make sense to speak to a professional plumber about your choices.