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Suppose you are deciding whether to buy an electric or a natural gas hot water heater....

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Advance Math

Suppose you are deciding whether to buy an electric or a naturalgas hot water heater. Assume you live in California.

Note: 1 therm of natural gas equals ~30 kWh of electricity

Natural Gas Price in CA = $13.35 per Thousand Cubic Feet

Electric price in CA = .16 cents per kilowatt-hour (kWh)

Gas Water Heater Uses 258 therms per year

Water heater numbers are based on 40-gallon models with a 0.63EF rating using 40,000 Btu/hr and based on the U.S. Department ofEnergy’s (DOE) national average of 64 gallons of hot water usedaily.

Electric water heater Uses 4,881.25 kWh per year

An average water heater runs three hours daily. A 50-gallon,5,500-watt water heater with a .90 EF and an electricity rate of$.16 per kilowatt hour.

For each sub question, show your assumptions andcalculations.

1a) Which would you pick to minimize your operating costs?

1b) If the electric water heater cost $1250 and the natural gaswater heater cost $1600, how much would this change yourcalculation for 1a?

1c) Which would you pick to minimize your total energyfootprint, and why?

1d) Which would you pick to minimize your environmentalfootprint, and why?

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