Hot water heater replacement

[aceyou]

Ok, looks like in the next few days I'll need to replace our hot water heater.  Here's the specs:

2400 sf house, 20 years old.  3.5 baths, four people live in the house.  We have natural gas and electric at our house.

What is the sweet spot for price vs energy costs, etc.  This is your chance to convince me what I should do')

[WonderfulLife43]

As George Carlin would say: Why would you need to heat hot water. Wouldn't it be better to have a cold water heater ??   :-)   
Sorry, couldn't resist.

[SunnyDays]

I used to have a gas water heater, and when I replaced it, the technician recommended an electric one, as I'm the only one in the house and he said it would give me faster hot water, since it's not used as much as it would be with more people.  Don't know if that's true, but it's what I went with.  Can't say I've really noticed a difference, and haven't paid attention to usage costs.

[AMandM]

Here's a calculator:
https://www.energy.gov/eere/femp/energy-cost-calculator-electric-and-gas-water-heaters-0

Bear in mind that usage cost is not the only factor. When our electric water heater had to be replaced, we wanted to go with a gas one, but there was not enough ventilation in the basement to add another combustion appliance.

[Sibley]

I had gas, and didn't switch. Make sure you're getting an appropriate size (not too big, not too small). If you need an expansion tank (if you have a backflow preventer on the water line, or the city does, you probably do) then it's gonna be cheaper to add it at the same time then if you added it later. If you need one, get one.

Also shop around. There are a WIDE variety of installation costs for water heaters.

[Bracken_Joy]

What Sibley said.

Also, when you get quotes, be sure to ask what code updates there have been and how much they'll cost to have done. Our water heater was over 20 years old, and there were a few code changes that had happened. Added ~$400 to the total cost. Just something to keep in mind.

[acroy]

Move. House is too big for 4 people.... IMHO!
Generally most cost-effective to replace like for like, otherwise the cost of having a pro run new utilities etc will push the payoff way into the future. Gas is generally pretty darn cheap to run. Tankless gas is awesome, and prices have come down. Good luck!

[Rob_bob]

From what I have heard tankless gas heaters are most efficient.

[aceyou]

Move. House is too big for 4 people.... IMHO!
Generally most cost-effective to replace like for like, otherwise the cost of having a pro run new utilities etc will push the payoff way into the future. Gas is generally pretty darn cheap to run. Tankless gas is awesome, and prices have come down. Good luck!

The house is absolutely too big for four people!!!  We have the best neighborhood in the world though, so I'll accept the deserved punch in the face:). My two kids run through the neighborhood safely and are in and out of the houses of all their ama neighborhood friends.  The families around us frequently invite us for impromptu potlucks and we host the once or twice a week as well.  When the kids go off to college we will likely get something half the size.

Thanks all for the great advice so far.  I'm starting to get comfortable with how this is all going to happen.

[SOS]

What size is the water heater? Was it electric or gas?