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Which type of water heater is right for your home?

November 17, 2025

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The Straits Times

Since April, household water heaters have been included in the National Environment Agency's (NEA) Mandatory Energy Labelling Scheme, where ticks are used to indicate an appliance's energy efficiency.

- Zhaki Abdullah Correspondent

Which type of water heater is right for your home?

After a one-year grace period, from April 2026, water heaters on sale here must be registered with NEA and meet the requirements of the scheme. Models that fail to get at least a one-tick energy rating cannot be sold.

This is especially pertinent as water heaters are the third-most energy-intensive appliances used in households here after air-conditioners and refrigerators, accounting for some 10 per cent of an average household's energy consumption.

But among the different kinds of water heaters on the market here, which one should environmentally-minded home owners choose?

Experts told Simply Science that people should consider their usage patterns, the size of their homes, and other practical factors.

According to the NEA website, there are currently 203 types of water heaters in the market across four categories: electric instantaneous, electric storage, gas instantaneous and heat pump.

For energy efficiency, NEA recommends instantaneous water heaters over storage alternatives.

The agency also suggests that users with access to a gas network install a gas water heater instead of an electric storage heater.

Mr Alvin Ee, a research fellow at the National University of Singapore's (NUS) Energy Studies Institute, explained that storage heaters inevitably lose heat to the environment due to the temperature difference between the heated water and its surroundings - a phenomenon known as standby heat loss.

"While insulation is typically installed to reduce heat loss, it does not eliminate it," he said.

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