Posted By engineer on 02 Dec 2010 12:43 AM
Plan for the buffer tank well described by cschmelz
Main water heater can be tank or tankless. I prefer electric tanks, but if you have NG that may be the better way to go. The trouble with basic tank gas water heaters is that they have a central flue that sucks heat out of the tank 24/7, accounting for their abysmal 60% efficiency.
Tankless is a space saving hi-efficiency solution, but I don't like them owing to their expense, complexity, vulnerability to hard water, and a highly subjective hunch that they might not last as long as tank models. Take that for what it is, just an opinion.
True, dat, what's worse, with a desuperheater & buffer in front of it, it's firing duty cycle will be even lower, and it will run even LESS efficiently than it's EF numbers. At steady state most 40-50 gallon gas HW heaters run ~80% thermal efficiency, but that lossy convection loop through the center-flue HX is an efficiency killer at low duty cycle. At half the EF test usage a 0.60EF heater will run about 42%% efficiency. If the desuperheater is supporting half or more of your HW heating load, that's where it's going to live, if it's supplying 70%+ of the heat it'll be more like 30%.
See: http://old.aceee.org/conf/08whforum/presentations/1a_davis.pdf (look at the low use load profiles for heaters #1 & #2 on p8.)
If going with a tank-type gas unit, at LEAST avoid standing-pilot versions. If you have the electric service that can handle the load an electric tankless is probably the best option for purely an efficiency point of view or a (not-so-lossy in standby mode than gas and much cheaper than tankless) electric tank. Gas heaters will drop below 30% efficiency much of the time with a desuperheater in front of it, at which point it's equivalent to running an electric tank off a fossil-fired grid. If you live where there's a cleaner grid-average 50% fossil fired, electric finish-heat starts looking a whole lot greener than any center-flue gas unit.
But if 100% of the HW was coming from the water heater (no desuperheater pre-heat), gas is still a greener option almost everywhere in the US, and electronic ignition + forced draft make a real difference compared to standing pilot/atmospheric drafted units.
Also: No matter how you're heating the hot water, insulating ALL of the near tank plumbing (cold feed too), with 3/4" wall closed cell foam takes a double-digit chunk out of the standby loss numbers. (Buy it online, if you can't get it from a local plumbing supplier. Box stores only carry the 3/8"-walled stuff.)