I just got geothermal installed this spring (Climatemaster), and I still have the existing NG water heater and the required masonry chimney. I'd like to remove both before winter, as the previous furnace combined with the water heater created condensation within the chimney, and it dripped into wall outlets (through cracks, one would presume) and the basement floor.

My sticking point right now is whether to go with a high efficiency water heater that can be vented out the side of the house, or an electric tank heater. The house was built around 1950, is around 1500 square feet, and has 2 full baths, and one half. I'm located in Milwaukee.

I need to have some other gas plumbing done for a fireplace, so I'd like to do this all in one shot. Thanks for any advice!

I like NG but if your electric rates are relitivly low and assuming you have a seperate desuperheater go for the simple electric

You what? Why on earth didn't you get a Desuperheater / Electric water heater at the same time? The 30% tax writeoff the IRS offer you REQUIRES THIS. Hopefully you sprung for the desuperheater option on the Climatemaster, even if it's not hooked up at the moment.

There is some concern that gas water heaters and chimnies cost you extra by removing conditioned air from the envelope through combustion or draft.
Good Luck,
Joe

I did get the desuperheater option, but I didn't replace the water heater at the time because the high efficiency NG heaters were pretty pricey. I don't do a ton of water heating (2 people) so it isn't an urgent issue. As Joe said, the chimney through the roof is a possible energy loss, and its a simple fact that standard water heaters must be less efficient so that there is adequate heat energy to create a draft and vent the gas. Wisconsin gives a ~$60 credit for removing chimneys as well. I'd really like to get a power vent heater just for the simple fact that they are extremely efficient, but they are just pricey. Electric is my next choice, but I feel the monthly cost will be higher. Basically I pay now, or I pay later.

Is one or the other easier or more difficult to integrate into the geothermal system? I have also read on these forums that the desuperheater is nearly useless unless you install a ballast tank ahead of the water heater, due to it's ultra-slow 'recovery' time. Are these typically expensive or difficult to do?

Thanks, still not sure I have any idea what the better idea is here..

If installation room is available get two 40-50 gallon standard electric storage water heaters. Plumb in series. Pipe the desuperheater to the upstream tank, and wire only the downstream tank that feeds the house.

You can buy special insulated tanks for desuperheater buffer use, but a typical electric storage water heater is much cheaper and works fine.

With only two users, it would be a long time before an expensive gas power vented heater paid for itself. The desuperheater should reduce overall hot water heating load and cost by 1/3 - 1/2 depending on specifics of your setup.

The unpowered tank plumbed to the desuperheater might reasonably count toward its cost and therefore be eligible for the tax credit.