Water heaters eventually fail, but repairing or replacing depends on age, condition, and your budget. Note: Your water heater will perform better and last longer if you flush the tank once a year to remove sediment.

Water heaters last for years before they fail. You usually have no notice of an impending failure until you get hit with that first icy shower or a giant puddle on the basement floor.

If your water heater is a conventional storage-tank water heater that is 10 to 13 years old, replacing it is obvious: New models are up to 20% more efficient and can save up to $750 in energy costs over the life of the unit. However, if your water heater is only a few years old, repair may be the way to go.

How to diagnose if a water heater should be repaired or replaced:

Conventional water heaters are simple. Cold water enters the tank and is heated by an electric element or gas burner. A thermostat regulates the temperature, usually 120 to 140 degrees. As the water heats, pressure builds inside the tank. When you turn on a tap, pressure sends hot water out the faucet. Because water heaters contain few moving parts, only a few things can go wrong.

· Pilot light on gas water heater flickers out.

· Circuit breaker for an electric heater trips.

· Burner or heating element fails.

· Thermostat breaks.

· Valve sticks.

Repairing or replacing any of those parts is relatively inexpensive. But if the unit is more than 10 years old, or if it’s leaking, it should be replaced.

Modern water heaters are far more energy-efficient than older models. Manufacturers now inject foam insulation between the tank and its outer shell, resulting in higher heat retention. New glass liners make tanks less prone to corrosion and leakage. A new water heater will save approximately 25% in energy cost.

Tankless water heaters, heat pumps, and solar water heaters offer even bigger savings and also qualify for federal tax credits although these units cost three to five times more to buy and install

Even with conventional water heaters, replacement might not be as simple as hauling out the old and hooking up the new. Many local building codes now require you to upgrade the following:

Water heater mount
Size or type of venting system
Drain pan underneath the heater
Supply pipes

If you are a DIY plumber, you may be able to install the new unit yourself. Most manufacturers provide detailed instructions however, you’ll need to check your local building codes.

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How to Flush Your Hot Water Heater