Tag: two-flat journal

Two-flat journal 6: How to make an all-electric house

After the bill drama with Peoples Gas last year, in which I was billed a $50 “base” fee per unit per month for the privilege of having a gas line to my house, I decided to make the gut rehab of my two flat all electric. I think that making an all electric house is easy, but it takes a lot of research to know what that means and how to select materials and appliances.

Read all of the “Two-flat owner journal” entries

Why go electric?

I have several reasons for keeping natural gas out of my house:

  • Natural gas has point source emissions causing indoor air pollution that need to be vented and evacuated properly (gas stovetops emit methane into your kitchen, so turn on your hood that hopefully vents to the outside)
  • The price of natural gas is not falling as fast as electricity is falling
  • Electricity is more and more likely to come from renewable sources, especially in Illinois because of our state policies that require ComEd and Ameren to buy more and more power from renewable sources
  • A future photovoltaic solar panel array could be integrated and some of the electricity in the house would come from its own generator
  • Without gas pipes in the house, there is less infrastructure to build and maintain

There are still some downsides to having an all electric house, namely when the power goes out on the block then nothing in the house will turn on. There are solutions, for this, though, including integrating a battery pack or using a fossil fuel-powered generator with its own tank.

The Passivhaus-certified single-family house in Hyde Park that I toured in 2018 has a small natural gas-powered generator in the rear yard, fueled by a typical Peoples Gas supply line.

What does it mean to have an electric house?

I think there are three categories of choices that one makes, about visible appliances, invisible appliances, and heating and cooling.

A visible appliance is one you use directly and frequently, like an oven and a clothes dryer. These are essentially the only two appliances that have gas and electric versions and electric versions are just as commonly available as gas version.

An invisible appliance is one that’s in a closet or in the basement, like a water heater. Most people I know have a gas-powered water heater (usually a tank, not tankless), and there are two kinds of electric water heaters (which I detailed in Two-flat journal 3). Again, these are very common and electric water heaters (standard with resistance heating, tankless, and hybrid heat pump) can be picked up anywhere a gas-powered water heat can be purchased.

Heating and cooling is the complicated category of the three. A typical new construction house or condo has gas forced air for heating, a condenser for air conditioning, and the air is pushed through the house via ducts. In the electric universe, however, mini splits/air source heat pumps have been around for 40 years and are extremely efficient at both heating and cooling. In cold climate region 5, where Chicago is, air source heat pump manufacturers have additional products to deal with the extreme cold temperatures.

Going electric in the heating and cooling category is the only one that necessitates deeper research on windows, wall assembly, and insulation to go beyond the basic energy efficiency code (Illinois Energy Conservation Code 2018). While the air source heat pump is efficient (some have a coefficient of performance, COP, of 3-4, meaning it transfers three to four times as much heat energy to the house as the energy they consume) it will work very hard to keep a house warm during negative temperature days (F°) and thus it’s important to have a well-sealed house so the conditioned air you’re paying for doesn’t escape.

If you want your house to be all electric, a lot of these choices can be made over time. For example, you can stop the air pollution by buying a range with an induction cooktop, which is extremely efficient, safe for households with children, and very easy to clean. I like to cook soup in my Dutch oven (which is compatible with induction cooktop) and I would rather not have to have the burner on for an hour, accompanied by a noisy vent fan.

Financial benefits of an all electric house

In addition to certain federal tax credits for replacing certain appliances, which you can claim when you file your tax return, there are often local incentives. ComEd has a new Electric Homes program that offers $4,000 cash (to the builder or general contractor) for an electric house (new construction or renovation) that meets their requirements. (2021 is the second year in operation, and there’s no guarantee it will operate next year.)

From ComEd’s marketing:

Building your clients’ dream homes – why not make them energy efficient?

ComEd provides a $2,000 incentive per home for electric homes new construction! All-electric home construction can sound daunting at first, but with the knowledge and help of ComEd, you too can benefit from tight envelope, all-electric HVAC, heat pump water heating, lighting and appliances. Construction of single-family homes, duplexes, townhomes, and 2-4 flats are eligible.

Make the jump to high-quality, next-generation, electric homes. Reduce energy bills while providing superior comfort. Prepare for a clean, resilient energy future.

Learn about additional clean energy strategies like solar power, electric vehicle charging, smart homes and induction cooking.

Please reach out to Sophia Seol SSeol@slipstreaminc.org if you have any questions.

I’m planning to buy these products

I’ve done a lot of research on appliances in all three categories because my architect needs to know exactly which appliances I’m selecting so the kitchen, utility closet, basement, and other spaces can be designed to fit them. Thankfully, a lot of appliances have similar dimensions so it’s easy to match the available space with the catalog of laundry machines, refrigerators, etc.

My architect and I reviewed a printed set of plans last week, mainly so he could alternate between drawing on AutoCAD and marking up issues.

There are two main attributes to watch for when selecting electric appliances: the yellow Energy Guide label that estimates the annual cost of operating the appliance, and whether it has Energy Star certification. One of the ComEd Electric Homes requirement is that every appliance that can be Energy Star certified is – I’ve found that there are no certified ranges.

My favorite place to shop for appliances online is Abt. When I polled my Twitter followers last summer for appliance store recommendations, Abt was overwhelmingly the most recommended store.

Note: I have no idea which ones will be in stock when it comes time for me to buy any of them, but these are the ones I would pick right now.

All appliances and equipment are Energy Star-certified except where noted.

Visible appliances

  • Dishwasher. I’ve got three options on my list (each costs less than $500):
  • Refrigerator (a different one for each dwelling unit)
  • Oven/stovetop/range
    • Frigidaire FCRE3052AB ($629) – Not Energy Star certified, not induction
    • Frigidaire GCRI3058SS ($1,169) – Not Energy Star certified, yes induction

Invisible appliances

  • Water heater. Something to know about tankless is that it’s not necessary to have a single tankless source for the whole house, as it’s possible to have multiple tankless water heaters at each water source, sized to the need – the kitchen sink can have one, and the shower and the lavatory can share another. The hybrid heat pump water heater currently has a 10% federal tax credit, up to $300.
    • Rheem brand’s “Performance Platinum 40 Gal. 10-Year Hybrid High Efficiency Smart Tank Electric Water Heater” (Home Depot)
    • Each dwelling unit will have the same water heater but may not have the same kitchen and laundry appliances.
  • Clothes washer. Stacked, to save space, from (each is about $800):
  • Clothes dryer. Stacked, to save space, from (each is about $800):

Heating and cooling (HVAC)

Mini split systems have two parts: An outdoor condensing unit and one or more indoor fan units. They’re connected by a refrigerant line, an outgoing condensation line, and electricity from the outdoor unit to the indoor units that is routed through a small diameter (3″) hole in the exterior wall.

Three outdoor heat pumps on the roof
Three larger-capacity heat pumps on the roof of a new construction and all-electric three-flat in Pilsen. Photo: Steven Vance.

There are several options for indoor units: Wall-mounted, ceiling mounted cassette, ceiling mounted box, and ducted (the outdoor unit will provide the hot or cold refrigerant and the ducted unit will blow air through a duct network). My architect and I have selected two ceiling-mounted cassettes per dwelling unit; these fit within the 16″ between joists and avoids the protrusion of wall-mounted units.

  • Outdoor unit, Mitsubishi MXZ-3C30NAHZ2 (Ecomfort, $3,365 x2)
  • Ceiling cassette indoor unit, Mitsubishi MLZ-KP09NA (Ecomfort, $895 x4)

I will need a venting system to exchange fresh air into each dwelling unit, without relying on the typical situation where the leakiness of houses brings in fresh air. An energy efficient way to do this is to use an “energy recovery ventilator” (ERV) that transfers the heat or chill of outgoing conditioned air to incoming fresh air to reduce the amount of energy that the heat pump would expend to warm or chill the incoming air.

An alternative to ducted ERVs is to use a wall-mounted model, such as the Zehnder ComfoAir 70 ventilation unit, Holtop ERVQ-B150-1A1F, or Blauberg VENTO Expert A50-1 W (that’s on Blauberg’s German-market website, and that company has a subsidiary called VENTS that has an American-market website). There’s also Panasonic’s WhisperComfort ($420) that can be mounted on the wall or ceiling. However, I need to verify that either has air moving capacity required by the indoor air quality standard ASHRAE 62.2, specified in the ComEd Electric Homes program. It might be possible to use two of these, including one in the bathroom.

What’s missing

Oh, one more thing, the electrical panels in the basement will need to be replaced (which is part of the replacement of the entire electrical system), and ComEd will likely need to string higher-amperage lines from the alley overhead power lines to the house. This area requires more research and possible a conversation with an electrical contractor or ComEd. I’m currently assuming that I can specify that the electrical contractor will handle this with ComEd.

Two-flat journal 5: Costs

Updated May 3, 2021, to add more insight from Robinson Meyer (The Atlantic) as to why lumber prices are so high.

My architect and I are still working on plans, slowly but surely. Read my previous entry, Two-flat journal #4, to understand why that seems to be taking awhile.

There is something else on my mind as we work toward the goal of a gut-rehabbed two-flat: How much this whole project is going to cost.

I’ve talked to several contractors, engaged a structural engineer to specify and design the new steel beam in the basement, and obtained quotes for all new windows from four manufacturers.

One contractor happily gave me an estimate, based on incomplete plans, that was about $220,000. That price could go down with more specific plans and instructions, as the estimate had variability based on unknowns, and it doesn’t include the cost of purchasing the windows. More likely, I think the price will go up due to material costs.

How much windows might cost

All window quotes I’ve obtained include installation by the manufacturer’s selected installers, which has a benefit from some companies, mainly that the maker will guarantee the installation for a period of time.

The first floor living room window is currently double hung with a mullion and a tripartite transom window above it (with stained glass, that’s been covered on the inside). This window will become a “Chicago window” with a centered picture window flanked by casement windows.

I would share the quotes with you but I don’t think they would be very helpful at this point because I haven’t evaluated each of the quotes on the quality of the window. For example, one of the window quotes was three times higher than the next highest quote, but the maker guarantees installation for 10 years and is a higher-quality window. But what is the factor of difference in quality, is it three times? And how valuable is a 10-year installation warranty? It’s unlikely I would need to avail that benefit and the three times difference in price means I could replace all of the windows *again* two times for the same price! (Assuming prices didn’t increase between now and that future moment.)

The 15 new windows, according to the four quotes, will cost anywhere from $12,000 to $46,000. I should mention that the highest quote doesn’t include any discounts or special offers, as those will be offered once I re-engage the estimator and ask for one.

Look at windows 1.1 and 1.3, which look like bay windows. These are both Chicago windows, which have a center picture (fixed) window flanked by two operable windows (casement windows, in this case).

There are a couple of opportunities to reduce window costs. I could convert more of the casement windows to be double hung windows (which I don’t want to do as I prefer single hung windows), or I could change the window opening size. A couple of the window openings are taller than most of the window makers have in their standard window design, so an upper transom (fixed) window would be required. However, changing the window opening size may end up shifting costs to a different plan of adding bricks and adjusting walls.

Another way to reduce the window cost would be to use models that are less energy efficient, but I also don’t want to do that. I’ve insisted that every window be Energy Star certified – this is about the only certification standard that I understand, and it’s common across most window makers in the Chicago area. (There are also Passive House and Passivhaus certified windows, and companies that import higher-quality and more efficient windows from European manufacturers, but I haven’t bothered with any of those because I assume the prices will be even higher.)

Lumber and other construction materials

That lumber prices have more than doubled over prices a year ago is well known if you read real estate industry news media, or if you’ve shopped for wood at Menards to build a couple of benches for some nicer outdoor space or installed a new porch.

My gut rehab will require a lot of plywood (to replace the subfloor), “soft lumber” replacement studs, and some replacement joists.

The St. Louis Federal Reserve maintains “FRED”, an amazing website with interactive charts to explore economics statistics, including lumber. The pricing information comes from the Bureau of Labor Statistics and their Producer Price Indexes.

The chart for the plywood price index below shows very stable pricing in fall and winter 2019-2020, and then in May 2020 prices start climbing and the index increased by 100 points to March 2021.

U.S. Bureau of Labor Statistics, Producer Price Index by Commodity: Lumber and Wood Products: Plywood [WPU083], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/WPU083, April 25, 2021.

BLS has monthly detailed reports so you can find data about more than the products FRED has charts for. Let’s dig in to the March 2021 report (indexes mean that the pricing represents percentage changes based on 100% being the price when the index was established):

  • “Softwood dressed 2-inch lumber, 2 inches in nominal thickness only, not edge worked” (a.k.a. 2×4 studs) (index established June 2012):
    • March 2020: 205.1
    • March 2021: 324.1 (this means that the price has increased by 119% year over year, a more than doubling of price)
  • “Softwood plywood products: rough, sanded, and specialties” (index established December 2011):
    • March 2020: 139.0
    • March 2021: 242.9 (again, this means that the price has increased by 103.9%, doubling the price)

In addition to general demand being much higher, there are other reasons why lumber costs so much more right now, according to Robinson Meyer writing in The Atlantic last week.

Since 2018, a one-two punch of environmental harms worsened by climate change has devastated the lumber industry in Canada, the largest lumber exporter to the United States. A catastrophic and multi-decade outbreak of bark-eating beetles, followed by a series of historic wildfire seasons, have led to lasting economic damage in British Columbia, a crucial lumber-providing province. Americans have, in effect, made a mad dash for lumber at the exact moment Canada is least able to supply it.

[snipped]

“There are people who say, ‘Climate change isn’t affecting me,’” Janice Cooke, a forest-industry veteran and biology professor at the University of Alberta, told me. “But they’re going to go to the hardware store and say, ‘Holy cow, the price of lumber has gone up.’”

[snipped]

It has lost 2.5 billion board feet of annual production capacity since 2019, enough to shift prices in a North American market of 70 billion annual board feet, Jalbert said.

Read Robinson’s full article to see how the bark-eating beetles overwhelmed the forests of British Columbia and the northern forest belt in Canada and why their rampage is fueled by climate change.


The same contractor, when they checked in with me recently, said that the prices of other construction materials had gone up, too.

In the same Producer Price Index report, it looks like wood doors and door frames went up 29.2% from March 2020 to March 2021; metal windows are up 7.1%, double hung wood windows are up 6.8% and wood casement windows are up 5.1%; wood moldings are up 16.9%.

I didn’t see any notable price increases in plumbing materials or kitchen cabinets – all were close to inflation. The PPI doesn’t have vinyl window products, or I don’t know under which category it falls.

Two-flat journal 4: How’s the renovation going?

I get this question several times a week, and I want to give everyone who asks a clear and accurate response without ignoring them (which I sometimes do). This blog post is how I can do that efficiently, and be more organized and mindful about the progress.

tl;dr:

  • The renovation part of the renovation project hasn’t started.
  • The preparation part of the renovation project has been going on since August 2020.
  • I do not know when we’ll be done, or when we’ll have a permit, or when construction will start.

“Why is it taking so long?” is the question that people don’t ask aloud, but I guess that my friends are like me and curious.

It’s taking a long time because my architect and I don’t spend a whole lot of time working on the project. It’s all relative, of course. We spend about 10 hours a week on this (at most), and that includes a lot of learning and research.

^ Not my house 🙂 These three mini-split outdoor heat pump condenser units are for someone else’s three-flat that’s described below. Each has a heating capacity of 36,000 BTUs, and can perform at 80 percent capacity when the outdoor air temperature is -13°F. Read more about this tour on my @ChiBuildings Twitter thread.

We both have full-time jobs, have other things to work on, and our experience in this arena is limited. My architect, who prefers to stay out of the blogging spotlight, is extremely experienced in multi-family new construction residential architecture, though. We also rely heavily on the input of friends and neighbors who live in similar houses and have experience dealing with the construction idiosyncrasies of old buildings in Chicago. I also rely on the input of other architects who are experts in designing renovated and new construction one, two, and three-unit houses (thank you K.D. and P.M.).

This is a learning process for both of us. There are so many decisions to make, independently and together. We both want to be deeply involved in understanding what it takes to buy and gut rehab a house that I will live in. If we do it well this time, it would make it easier for either one of us to do it again for a different house.

What we’ve done in the past two weeks

  • I invited a fourth general contractor into the house to take a look. I am not getting estimates yet from these four GCs because the plans / permit drawings aren’t far enough along. Each GC, however, has reviewed the current plans prior to the visit so it’s easier to point and explain what’s going to change.
    • One of the big things that will change is replacing the wooden center beam in the basement to a steel I-beam, and changing out some of the joists. This will require temporarily shoring (supporting) the joists. Each GC has had a slightly different opinion on the procedure. But we get to hear each procedure and come up with the one we think is best.
  • I received and organized three quotes for all-new windows, as well as researched and modified the window schedule. “Organizing” the quotes means adding a new column to my window schedule spreadsheet with each manufacturer’s pricing so I can compare them. Part of window research is figuring out the type of window I want for each room and opening and assessing the quality of the manufacturer. For example:
    • I am learning that casement windows are more energy efficient because they create a better seal when closed and locked than hung windows.
    • I prefer single-hung windows to double-hung windows, but some manufacturers don’t make single-hung windows.
    • Every manufacturer has different maximum window heights. One of the openings is 80 inches tall and, for one manufacturer, the maximum height for a casement window is 72 inches and the maximum height for their hung windows is 75 inches. Thus, the estimator added transom windows to all openings that exceeded their maximums. That’s fine, but then it adds a new decision point: What proportion should be operable windows and what proportion should be transom windows?
While discussing window openings and installation details, my architect realized we didn’t collect enough data when we measured it last fall. We went to my house last week to get a closer look, take some new measurements, and inspect the conditions of the sills. The last GC had pointed out that some of the sills should be replaced.

  • My architect continued talking to the structural engineer I hired to make sure the engineer’s drawing has the right details and lists the specifications we asked him to write out on the drawing.
  • Settled on an HVAC system. For a couple months I’ve been researching mini-splits off and on. I got an estimate for equipment + installation from one company, which was much higher than I expected. I combined their projections for required heating capacity with projections from others, as well as CoolCalc.com, to settle on a lower capacity.
    • I started looking at more retailers who will sell mini-split systems directly to the consumer, or the GC, to get grounded in pricing and availability. Then, when I was done specifying the schedule, my architect took a look at the designs and the cut sheets, and figured out where the indoor units should go. He recommended choosing the cassette style that gets mounted within the ceiling between two joists. It costs more, but it looks a lot better since there’s not a big box hanging on the wall in the living room and kitchen.
    • Last Friday my architect and I visited a “near Passive House” standard three-flat being built in Pilsen. The developer, who will live in one of the units, also used mini-splits, from Mitsubishi. It was cool to see them installed (on the roof) and how they were connected to an air handler that serves as the blower to push the air through a traditional duct and out via an “energy recovery ventilator” (in the winter, the warmth of the outgoing air is transferred to the fresh incoming air so the machinery has to expend less energy warming up cold air).

While I was writing this, another of the four GCs that toured the house checked in. I told them that after this week we’ll have made significant progress since my architect has the week off of work.

What we’re working on next

  • Last week, my architect started drawing a window detail in the plans because there are good ways of installing windows and bad ways. I don’t fully understand them, so I’m not going to write about them here, but he did explain them to me and pointed out some good examples in his house and some bad examples in someone else’s house.
  • Finish the “panelboard schedule”. This diagram shows each circuit that will be in a breaker box, and labels them according to the circuits in the electrical drawings. Not every circuit breaker will be identical, as some circuits – like the ones for the water heater and mini-splits – need 30 or 40 amp breakers.
  • I am going to research the construction type’s fire protection requirements by reading the Chicago Building Code and noting the required fire ratings for the basement ceiling, the ceiling between floors, the interior front door’s rating, the roof rating, the rating for the light well wall, and the rating requirement for load bearing walls.

What I’m worried about

All of the decisions that have to be made. See the three points about windows above. I’ve got three quotes for the windows, all based on about the same schedule. But after I receive the fourth quote that I’m expecting this week, my desire for certain windows may change. I may want more casement windows, or different proportions of transom windows and casement-picture-casement window layouts.

The cost of everything. I have significant savings but I will still need to borrow some money. I need to start researching the universe of options and the availability of options. On top of this, lumber pricing has doubled since the start of the COVID-19 pandemic.

I shoveled the walks every time it snowed. This is significant because I don’t live here so I took the 82 Kimball/Homan bus from where I live to where I don’t live. I enjoyed it because it got me out of the house when it was cold, and it gave me some moments of exercise.

Two-flat owner journal 3: Choosing the right water heater

Read all of the “Two-flat owner journal” entries

This journal entry is all about the several hours of time I spent researching which water heaters to buy for my two-flat. While my architect works on drawing the plans, I am doing a lot of research to answer questions for him, so he knows what appliances are going to be hooked up to the house’s mechanical systems.

I started researching water heaters on a cold Saturday in January so I could fill out the “appliance schedule” for the project. My first journal entry was about my new distaste for Peoples Gas. Since then, my view has evolved and we (my architect and I) are designing an all-electric house.

SCROLL DOWN FOR THE RESEARCH – Read on while I discuss my thoughts about electricity and natural gas as a power source for homes.

Discussion

Let me step back a moment. I also have a “distaste” (a weird word to use when talking about something that would literally kill you if you drank it) for fossil fuels, too. When I approached this research task I thought that an electric tankless water heater had some kind of inherent efficiency over an electric or natural gas-powered tank type.

But it doesn’t, and that’s partly dependent on how much water a household uses. Tankless water heaters are sometimes marketed as providing “unlimited” hot water, which scared me. Since I don’t go to an office anymore (because of COVID-19 and because I quit my office-attached job), I take a shower every other day. And they’re long. Just imagine that your shower never ran out of hot water. I might not get out. So that’s a personal critique of the type of water heater.

(Another con of tankless water heaters: When the electric is off, water cannot be heated; with a tank water heater, there is always residual hot water in the tank, which can still flow. Additionally, electric tankless water heaters have special electrical box requirements because they draw so much electricity.)

Let’s talk about the fuel. Natural gas is cheap right now – to purchase. But it has awful costs elsewhere, namely its contribution to pollution and carbon dioxide emissions when burnt. Burning it in the home also releases additional gases, which is why I think you should run your range hood vent/exhaust when you cook food on the stovetop.

Gas stoves emit a host of dangerous pollutants, including particulate matter, formaldehyde, carbon monoxide, and nitrogen dioxide. 

Mother Jones, “How the Fossil Fuel Industry Convinced Americans to Love Gas Stoves”, by Rebecca Leber, FEBRUARY 11, 2021

Going electric in the kitchen is pretty easy, I think. I didn’t do much research and I picked out all Energy Star-certified appliances. For cooking I chose a range with an induction cooktop and an electric convection oven (which means there’s a fan inside to blow the heat around for even cooking). Induction cooktops, while being a really efficient user of energy, have cooking benefits: Water reaches a boil faster, the surface is easy to clean, and there are fewer burns because the surface doesn’t get hot.

Creating an all-electric house is pretty easy, actually, until you get to the heating and cooling part, and knowing how to heat a house with electricity in the very cold climate of northern Illinois requires even more research.

Water heaters are actually easy to figure out (after 5 hours of research) because, in the end, all you do is plug them in to a 240 volt receptacle and connect to the already-existing water pipes.

I am still in the middle of researching electric heating and cooling and I’ve opened a conversation with two HVAC contractors (one that sells Carrier and one that sells Mitsubishi).

Water heater research

I originally tweeted all of this on January 16, 2021, because I like using Twitter as a sounding board.

I have researched five types of water heaters because I want to fully understand the purchase price and energy price of each.

  1. Natural gas, tank
  2. Natural gas, tankless
  3. Electric, tank
  4. Electric, tank (hybrid w/heat pump)
  5. Electric, tankless 

Based on my research of manufacturers’ reported “Energy Guide” stickers (the yellow stickers required by federal law) for these five types, the Electric, tank (hybrid w/heat pump) (option 4) is far and away the most efficient water heater. 

The Electric, tank (hybrid w/heat pump) has an annual operating cost of $104. What is this thing? It takes the standard tank, uses electric heating elements (think of the wires inside your bread toaster), and extracts heat from the air in your house with the heat pump. That’s pretty amazing: There is free heat to be extracted from the air.

The Electric, tank (hybrid w/heat pump) has less than half the operating cost of the next lowest type: Natural gas, tankless.

Rheem (a water heater manufacturer, which also owns the Richmond brand) says that an electric tank water heater with hybrid heat pump uses less electricity than an old-fashioned incandescent light bulb.

Note that the electrical prices in the yellow “Energy Guide” sticker is 12 cents per kWh, and ComEd just charged me ~7 cents per kWh, so the annual operating costs of electric are less than the stickers say. 

Next, as part of the “total cost of ownership” (well, minus maintenance) I added in the purchase price. The Electric, tank (hybrid w/heat pump) costs $1,400. That’s 1.5-4x more expensive than the other types of water heaters!

However, I’ve since found that Rheem/Richmond makes a couple cheaper models that don’t have high-tech features, so the purchase price is anywhere from $1,000 (if you can find that model) to $1,175.

I calculated the “5 year cost of ownership” price for water heaters of each type because it makes sense to distribute the purchase price over a period of its lifetime. I could have easily made this a 10-year amortization since water heaters come with 6 to 12-year warranties. I interpret the length of the warranty as the manufacturer’s assessment as to how durable they’ve created the machine.

How they compare

Of the five types, I compared 11 machines (view the comparison chart).

The cheapest water heaters over five years are: 

  1. Electric tankless
    $1,479 (caveats in that annual energy cost was extrapolated because a direct Energy Guide sticker wasn’t found)
  2. Electric, tank (hybrid w/heat pump)
    $1,695 (does not include federal tax credit)
  3. Natural gas, tank
    $1,999

Remember, though, that the Energy Guide stickers for the electric water heaters use a 41.7 percent higher energy cost than ComEd currently charges, and ComEd offers hourly pricing so the price can be much, much lower per kWh and the prices for the electric water heaters are EVEN LOWER. (Thank you for pointing this out, Troy.)

Guess what…the price of the Electric, tank (hybrid w/heat pump) can come down even more because of (1) a ComEd rebate, and (2) federal tax credit worth 10 percent of the purchase price + installation, up to $300.

Bonus: By getting electric you are part of the carbon-free future. 

Further discussion

Now that I’ve convinced you that an Electric, tank (hybrid w/heat pump) water heater is the cheapest option, here are a couple of other things that came up in the Twitter conversations.

  • Including utilities (i.e. electricity cost) in the rent for the rental apartment in my two-flat benefits both me and the tenant. The tenant has a fixed and predictable energy cost and fewer bills to pay, while I am able to charge a bit more than I predict the cost will be in order to pay back the higher upfront costs of the water heater and the Energy Star-certified appliances (as well as the heating and cooling system).
  • The calculations might be different if I looked into having individual tankless water heaters at the point of demand, or using them as “boosters”. Tankless water heaters come in a variety of capacities and energy outputs (measured by how much energy it takes to increase the temperature from how cold the water is when it enters the house or heater to the desired temperature). One could be added to the kitchen, the bathroom, and next to the laundry, and sized for the differing demands of each location.
  • A complex system could be built that is programmed to buy energy from ComEd when the hourly cost is the lowest and use the power from the battery when the hourly cost is highest.
  • A couple people asked about geothermal. I looked into it and I wrote it off quickly: A drilling rig needs to access the yard to drill multiple horizontal wells. The garage blocks that from happening. However, an apartment building renovation in Rogers Park designed by PMP Architects is converting its heating system to use geothermal energy.

Two-flat owner journal 2: Demolishing the interior

In order to get the two-flat ready for a gut rehab, one has to gut it.

The rehab stage is still months away, as my architect and I continue to develop plans. He does most of the work, but it’s quite collaborative because there are layout, design, and finishing choices that we need to make.

Gutting the house is also necessary for the plans because my architect needs to know what’s behind the walls.

I hired Amplify Property Solutions for the job. APS has a social mission of training and employing young Black men. You can ask me personally how much it cost, but it was between $5,000 and $10,000 (that range includes the cost of six Dumpsters).

I am very happy with the crew’s work and Ron and Ted’s dedication to communication, clarity, and customer service. The work took a week longer than they predicted because of some aspects that I think were next to impossible to know:

  • There were 1-2 “extra” layers of flooring in some places. From top to bottom in the upstairs living room there were carpet, wood, linoleum, wood, and subfloor layers.
  • Because the center beam in the basement has been failing (sagging) for years, the centers of each floor were sinking making the floors unlevel. Platforms were built in each kitchen to raise and level the floor.
  • The house is one of two row houses, so one exterior wall is shared. On this wall, behind the drywall was a 1″ layer of plaster that took awhile to chip away.

The subfloor boards are very wide and old growth and original (so they’re at least 130 years old). I’ve been told that some people find these valuable; if you’re interested in purchasing them, please get in touch!

See more photos below and in the house photo album.

Permitting

With this level of demolition, a permit is required! I pulled an easy permit for this project (which I think cost $375). The Dumpster company obtained their own permits to occupy the street right of way.

Also, as a way for the Chicago Department of Buildings to discourage gut rehabs being permitted with a series of easy permits, when a Standard Plan Review is most likely required, the DOB required that I apply for a renovation/alteration permit and show them in-progress drawings.

Consultants and contractors used so far


First floor kitchen
The demolition exposed the shape of the chimney. The right side was filled in and the wall was flat so we didn’t know how wide the chimney was.
The kitchen platform
The kitchen platform had a level top, but the floor beneath was uneven. The framing underneath the platform had angles cut to ensure the platform was level.

Two-flat owner journal 1: Peoples Gas charges a lot of money for no gas

One of the first things I did after I bought a two-flat in July was contact Peoples Gas and Comed to ensure utilities were in my name, and that the utility connections would not be interrupted.

A few days later I decided that I wasn’t going to move in, because I wanted to make a good amount of changes and the best time to do that would be when nobody is living there. “Good amount of changes” turned into “gut rehab”. One of my friends is an architect and we (mostly him) are drawing permit plans right now.

It wasn’t until a week ago (8 weeks since I bought the house) that I realized there’s no reason to be paying for Peoples Gas to maintain a connection when I’m not using natural gas.

I’m writing this journal entry to exclaim how expensive it is to just “leave the gas line connected”.

It costs $50 per month per unit to have the privilege of possibly purchasing the delivery of natural gas through a pipe. Both units used 0 therms in the longest-period bill I received. (I received three bills, only one of which was for 30 days.)

The bill for the only 30-day period Peoples Gas served one of the units in my two-flat. Both units are unoccupied until after the gut rehab is completed. See the “customer charge”, which is the charge just to have an account open and for the potential to use gas.

I’ve got to pay $50 per unit for no gas.

I visited a three-flat under construction in Pilsen on Friday, and talked to the developer, Brent. He described how he’s following high-efficiency building wall standards to create a “tight envelope” (one in which very little air can leak) so that the tenants can “receive the comfort they’re paying for”. When it comes to setting the thermostat, the air delivered by HVAC machines should match that exactly, no more, no less. No oversized furnaces pushing too much heated air because so much of the air leaks through the walls and windows.

And, as a way to control costs, Brent will not connect a natural gas pipe to the building, mostly because of the expensive and default customer charge that persists even when no gas is used. A VRF (variable refrigerant flow) and heat pump machines will be entirely powered by electricity to serve the tenant’s heating and cooling needs.

Brent said that the tight building envelope coupled with the high-efficiency HVAC means that it’s more cost effective to use electricity to heat a house than natural gas.

After our meeting, I looked again at my final bill from Peoples Gas (I closed the account two days prior) and understood what Brent was saying about controlling costs. With an electric water heater and an electric range, there’s no need to have any gas connection.

I will probably have to keep the gas at my two-flat, to power the furnaces, because I don’t have the expertise or financial resources to renovate an existing building to have a tight enough envelope to make electrically-generated heat more cost effective than gas-generated heat.

Update January 13, 2021: I turned off the gas and closed the accounts so I don’t have to waste any money while I’m not living there (a gut rehab still needs to happen).

To keep water pipes from freezing and bursting I cleared the vast majority of water lines and added an electric pipe heating cable to keep the remaining sections warm.

The two water service pipes (I don’t know why there are two) have an electric pipe heating cable and are wrapped in foam insulation. The cable has a thermostat that touches the pipe and starts heating when the pipe drops to 38°F. The pipe is heated until the thermostat detects ~46°F.