Hotwater Tank Rental in Ontario with Reliance Energy

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  #1  
Old 09-15-14, 03:58 AM
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Hotwater Tank Rental in Ontario with Reliance Energy

My home is heated with infloor radiant heat via a 55 gallon hot water tank which costs $89.00 every 3 months to rent. My question is would doing a buyout of the tank which is over 10 years old make sense and just get a new one installed when required. Not sure what the cost of a new one plus labour/taxes etc would be. I have the money to do this but was looking for opinions on which makes more sense long term financially. Reading online the cost of what people have paid to have this installed seems to vary greatly, but renting seems strange to me. The tank rental was in place when we bought the house so do I have the option of just calling Reliance and buying the tank from them and thats the end of renting. Then I get to deal with a local company in my town and save the rental charge. What is the average lifespan of a new hotwater tank?
 
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  #2  
Old 09-15-14, 04:53 AM
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The last thing you want to do is purchase a 10+ year old hot water heater.
Did you sign papers putting the lease into your name when you purchased the house?
 
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Old 09-15-14, 06:02 AM
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I wouldn't buy something that old unless it was a nominal charge (like under $100).
 
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Old 09-15-14, 07:25 AM
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I'd want them to pay ME to take it off their hands and dispose of it!
 
  #5  
Old 09-15-14, 03:51 PM
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The way it works in Ontario is when you buy a house with a rented tank you assume the rental fee and start a new contract with them. The buyout is prorated based on the age of the tank, so being as old as it is it should be very low, will call tomorrow and find out.
 
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Old 09-15-14, 04:03 PM
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Is it a "stone lined" tank ?
 
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Old 09-15-14, 07:30 PM
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55 gallon hot water tank which costs $89.00 every 3 months to rent
That's over $350 a year. I knew they rented water heaters in Canada but that is obscene.

Let us know what a new one would cost to buy in your area.
 
  #8  
Old 09-16-14, 07:19 AM
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Called Reliance today, the tank is 1998 60 Gal Power vented, buy out of $40 bucks. I was at work so need to call back with serial # and model. Rep was very polite and gave me a direct number to call back. Now to price a similar tank and get a quote from my local heating guy. They mase a small fortune off this tank since 98, I took over the house 4 years ago. What a racket tank rentals are.
 
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Old 09-16-14, 07:23 AM
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What a racket tank rentals are
Rentals in general, if you don't pay attention.

Yep, pay the $40 and start saving to buy a new one when this one goes belly up.
 
  #10  
Old 09-16-14, 07:28 AM
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They only made $1424 off the current Owner; and that included a service component, right ?
 
  #11  
Old 09-16-14, 08:06 AM
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Correct, in general seems expensive for something that could fail in a few years. Good tank mind you to last that long. Lately its banging and thumping when operating, with this cold winter forecast thats when its likely to die but you never know.
 
  #12  
Old 09-16-14, 08:37 AM
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Originally Posted by mitch17
". . . Rentals in general, if you don't pay attention . . ."
As a Real Estate Broker, as part of the Closing, I once had to return a Seller's leased rotary phone to the then current phone Company. The phone had only cost about $1.17 per month, and every month) since 1959, dating from a time before you could "own" your own phone !

So they collected over $700 during that period of time, on a phone that couldn't have been worth $2.00 (unless it had some antique value) . . . . but it had a service component !
 
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Old 09-16-14, 11:02 AM
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Renting a water heater from the utility, either gas or electric, was quite common in my area many years ago. The electric utility I worked for (forty years ago) would install it and if there was any problems they would send out a crew to replace it for no charge other than the monthly rental fee.

When they decided to get out of the rental business they had hundreds of brand new heaters they had received from the manufacturers as warranty replacements. They sold these (brand new) heaters for $100 each but with no warranty. They would even deliver and exchange the existing heater, even if it was an "owned" heater for no additional charge. I bought a few over the years, even after I left their employ. I checked the retail price (at a plumbing house) once and it was over $400.


Still, the price of $30 a month that Paul is/was paying is absolutely ridiculous.
 
  #14  
Old 09-16-14, 02:54 PM
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I truth, using a hot water tank to heat your home is not a great plan.
I am shocked that the tank lasted 10 years, your heat loss must be very low.

Does this tank connect to an air handler or rads or what ?

For low temp emitters such as large panel rads or in floor, we recommend the bradford white combi-core. This provides a seperate closed loop water supply to the floor areas with out any cross contamination. The combi core is also well suited to control itself with the lower return water temps. Unfortunately when pushed hard they do fail, but BW does replace them under warranty.

For higher temp applications such as BB rads, or an air handler some of the standard high capacity units work well, but they do not provide the seperate heating system that the combi core does.

Reliance are just an aweful company to deal with, I would rather have root cannel work done then deal with them on the phone, they are nice now but if your returning and canceling they change their tune fast.

Good luck
 
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Old 09-16-14, 03:15 PM
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Originally Posted by Paul O'Toole
". . . Lately its banging and thumping when operating . . ."
Independent of the financial arrangements, I don't know why an electric hot water tank (new or old} would behave like that, unless there's air getting into it via your return pipe from the radiator or whatever you're using to dispense heat.

How much do you pay per KWH in order to make that heating methodology economically practical ?

Also, if this is a "stone-lined", I think 10 years would still qualify it as a youngster . . . . except for the damage being caused by that internal "banging and thumping" activity.
 
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Old 09-16-14, 03:27 PM
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I don't know why an electric hot water tank
I believe this is a gas fired unit, but in any case when sediment and scale builds up inside the tank they will 'kettle' just like a boiler would under the same circumstances...
 
  #17  
Old 09-16-14, 03:39 PM
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The tank is connected to a infloor radiant heating system that heats a one level bungalow. I am wondering if maybe a tank flush would get rid of the banging noises.
 
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Old 09-16-14, 03:45 PM
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I am wondering if maybe a tank flush would get rid of the banging noises.
It might... but you could also be opening Pandora's can of worms.

If there is sediment in the tank and the drain valve has not been opened in decades, it's highly unlikely that it will NOT leak after you close it... drain valves on water heaters are garbage.

that's just for starters.
 
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Old 09-16-14, 04:24 PM
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humm, maybe take some pics of the installation.
I hate when contractors run potable water thru an in floor radiant system.
All summer long that water is just sitting there growing junk, and then it all goes back into you DHW system in the fall.

Yuk.
I would like to see how it was piped anyways.
 
  #20  
Old 09-17-14, 02:45 PM
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I am going to stand down on this and just replace the tank with a new one.
 
  #21  
Old 09-17-14, 03:01 PM
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Here are some pics for you to check out. Not the best but useable. After last years cold winter my equal billing plan for natural gas to heat the house is $80 per month. Is this system i have based on the images a open direct; closed etc. Just curious for my own info.
 
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Last edited by Paul O'Toole; 09-17-14 at 04:29 PM.
  #22  
Old 09-17-14, 03:53 PM
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I got a price from a good reliable company for $1,600 - $1,800 plus HST (13%) tax of course. Range of price is dependant on the distance of venting needing to be replaced. So that would take about 5-6 years for renting to break even. Hmmm, now to just make up my mind and get on with it.
 
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Old 09-17-14, 05:29 PM
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That price would be for a similar 55 gallon natural gas fired water heater ?
 
  #24  
Old 09-18-14, 03:40 AM
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Actually a similar 60 gallon natural gas fired water heater.
 
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