Depending on your household's hot water needs, installing a new water heater may require a substantial investment. And, the last thing you want is to cough up a tidy sum for a hot water system that won't serve you well.

The good news is that newer versions of almost all types of water heaters are significant improvements to their predecessors. With a little research, you shouldn't struggle to replace your current hot water system with a better one. But what should you look for in your new water heating system?

Here are some top factors to consider when shopping for your next hot water system.

Your Domestic Hot Water Demand

When it's time to replace your old water heater, you'll probably need to choose a bigger size than the one you have. This is because your household's demand for hot water increases as your family grows.

Make sure you calculate how much hot water your entire family uses on a daily basis, as well as your future hot water needs when sizing up your new water heater.

The Fuel Source of Your Water Heater

Hot water systems use a variety of fuel types to heat water. The next thing you need to consider when selecting your new water heater is the type of fuel it'll use. The most commonly used fuel sources for residential water heating systems are natural gas, propane, electricity, solar panels, and oil. Each type of fuel has unique pros and cons that should be weighed up before deciding on the best way to heat water.

If you're considering going green or want to cut utility bills with your hot water system replacement, installing a solar water heater is a great move. In addition to eliminating harmful greenhouse gas emissions associated with dependency on fossil fuels, solar-powered water heaters won't cost a penny to operate because sunlight is a free energy source.

Your Water Heater's Energy Efficiency

Water heaters are one of the biggest energy users in the home, so you should know how energy efficient a water heater is before you pay for it. To increase your home's energy and cost savings, invest in a water heater model that has a high energy efficiency rating. Spending more on an efficient system may translate to spending less over the long term.

To find out more about your hot water system replacement options, consult a hot water plumber close to you.