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Buyout Direct Energy Hot Water Heater

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  • Apr 22nd, 2014 2:41 pm
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[OP]
Sr. Member
Dec 9, 2007
537 posts
14 upvotes

Buyout Direct Energy Hot Water Heater

I will start by admitting that I didn't pay attention to the $20 dollar charge on my gas bill until recently until it dawned on me that in 5 years I have paid $1200+ in hot water heater rentals to direct energy. When I bought my house I had to sign a rental with direct energy and didn't really think of it. I am pissed off about it and I want to get rid of the rental charge so I see 3 options:

- buy it out ($697 which seems like a lot for a 5 year old heater)
- buy a new replacement for this tank (currently a Rheem PVW50 36000 BTU unit)
- buy a tankless hot water heater

Option 1 is the easiest but it seems criminal to pay that for the age, option 2 is a reliable option (know what I am getting) however I am a bit curious about option 3 if I am going to buy a tank anyways.

This is feeding a 2600 sqft house with 2.5 bathrooms and a family of four, how would a tankless heater perform? What is the cost difference between a tankless unit that is suitable for my house versus a 50 gallon tank unit?

Anyone been in a similar situation?
142 replies
Jr. Member
User avatar
Jan 12, 2007
198 posts
6 upvotes
I was in the same situation, and let me tell you I hate DE!!! so (and mind you I have a friend with a gas license) we disconnected DE heater, moved it to the front of the house, went to Home Dept and bought a regular hot water gas tank (read about the difference and payback period of H.E tank, regular E. tank and thankless in consumer reports). Call DE and told them to come and pick their tank from the front of the house!

Here is something you might be interested to read:


http://www.redflagdeals.com/forums/show ... stcount=13


http://www.redflagdeals.com/forums/show ... stcount=14
Deal Addict
Jan 21, 2008
1667 posts
382 upvotes
Oakville
I just paid $150 to buy out my 15 year old water heater, well worth it though to get rid of those scumbags.
Member
Jul 31, 2005
381 posts
50 upvotes
We did the same thing probably in 2003 and bought out our water heater...before we did this I complained to direct energy that hot water would only last for 1 shower. The guy came out and replaced some sort of copper anode, once it was all fixed up we then purchased it outright... no problems since then, the water heater is 40 gallons and now I think it is about 11 years old.
Jr. Member
Aug 2, 2008
179 posts
1 upvote
claringtonca
don't buy it cheaper from home depot
and you can still buy HIP insurance from them
and they have to fix it covers furnace and water tank
last time i checked
[OP]
Sr. Member
Dec 9, 2007
537 posts
14 upvotes
Ball park how much would a new high efficiency gas water heater cost for say a 50 gallon tank? I didn't see one on HD's website.
Newbie
Apr 5, 2009
4 posts
toronto
jumbojones wrote:
Jan 13th, 2009 9:47 am
I just paid $150 to buy out my 15 year old water heater, well worth it though to get rid of those scumbags.
What is the purpose of buying a 15 year old tank? The bottom of the tank (inside) should be all dirty and black with mold and mildew or what have you. I'm not saying you made a bad decision, but was this decision researched, if it was... Why was it a better option than to buy a brand-new water tank and replace ur 15 year one, while getting away from DE?
Member
Jan 12, 2009
319 posts
14 upvotes
When we moved into our current house I bought out the orignal 21 year old water heater from Direct Energy. At the time they only charged ~$25 to buy out any tank that was older than 15 years (didn't matter the size). I noticed that they have since increased the charge for really old tanks by a significant amount. In my case I paid off the tank purchase with less than 2 months of rental charges.

With their current buyout rates, it doesn't make sense to buy a really old tank. I would look into having them take their tank away to end the rental agreement and purchase my own tank.

Has anyone replaced a water tank themself with one from Home Depot or did you go through a plumber and if so how much $? It looks like a simple swap since the water supply, return, and gas lines are all in the same position as my current tank.
Deal Addict
Jun 15, 2006
1168 posts
80 upvotes
Is it standard to sign a rental agreement with Direct Energy when you buy a house that has a rental hot water tank? I don't remember having to sign anything with Direct Energy when I bought my house 2 years ago and I have a rental with them. The monthly rental fee is being applied to my bill.
Deal Addict
Aug 1, 2008
1554 posts
77 upvotes
Ottawa
enigma54 wrote:
Apr 7th, 2009 9:36 am
Is it standard to sign a rental agreement with Direct Energy when you buy a house that has a rental hot water tank? I don't remember having to sign anything with Direct Energy when I bought my house 2 years ago and I have a rental with them. The monthly rental fee is being applied to my bill.
You probably signed something with Enbridge and their home services operation.
This part of Enbridge's business was bought out by DE. DE now holds the contract
Member
Jan 12, 2009
319 posts
14 upvotes
enigma54 wrote:
Apr 7th, 2009 9:36 am
Is it standard to sign a rental agreement with Direct Energy when you buy a house that has a rental hot water tank? I don't remember having to sign anything with Direct Energy when I bought my house 2 years ago and I have a rental with them. The monthly rental fee is being applied to my bill.
I believe that your house purchase agreement says something along the lines that you will take over the contract but I may be wrong. It has been a while.
Newbie
Aug 28, 2011
9 posts
2 upvotes
TORONTO
john_ertw wrote:
Apr 7th, 2009 9:00 am
When we moved into our current house I bought out the original 21 year old water heater from Direct Energy. At the time they only charged ~$25 to buy out any tank that was older than 15 years (didn't matter the size). I noticed that they have since increased the charge for really old tanks by a significant amount.
Nope, it's still $25+HST. I just bought out mine an hour ago (didn't know this was possible until I read it here - thanks folks. 20 year old tank, sick of paying $17+ per month. Even if I only get two months out of it, I'm still ahead financially. When this one pooches, I'm going the direct buy route rather than Direct Energy route, and I'll have saved some money along the way. It'll pay for itself after four years. Purchase $650 + 210 installation, vs $17.49/month = 49 months' payments. It's a no-brainer.
Member
Mar 31, 2004
207 posts
22 upvotes
Milton
I just recently moved into my house where the hot water tank will be 10 yrs old this December. Currently I am getting charged $23.99/month for the rental. Luckily I am not on any contract with DE. I called them up and asked how much it would be to buy the tank. $414 for a 10 yr old tank!

What is the average installation cost for a hot water tank? Would you buy a tank directly from a company and have them install it or are you better off to buy the tank yourself and just call someone to come in and install it?
Deal Guru
User avatar
Mar 25, 2003
13876 posts
2963 upvotes
Markham
john_ertw wrote:
Apr 7th, 2009 9:00 am
When we moved into our current house I bought out the orignal 21 year old water heater from Direct Energy. At the time they only charged ~$25 to buy out any tank that was older than 15 years (didn't matter the size). I noticed that they have since increased the charge for really old tanks by a significant amount. In my case I paid off the tank purchase with less than 2 months of rental charges.

With their current buyout rates, it doesn't make sense to buy a really old tank. I would look into having them take their tank away to end the rental agreement and purchase my own tank.

Has anyone replaced a water tank themself with one from Home Depot or did you go through a plumber and if so how much $? It looks like a simple swap since the water supply, return, and gas lines are all in the same position as my current tank.

I replacement mine 1 or 2 years ago. Bought it from home depot and with home depot card don't pay for 1 year deal. And then had a friend that is a Plumber help install. I could DIY but didn't know which way to turn the gas pipe to unhook, Now I know and I can do DIY next time.
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Sr. Member
User avatar
Jan 15, 2008
876 posts
52 upvotes
Oil country
Im wanting to get out of my DE hot water tank rental asap. My tank is about 10yrs old and DE have come in twice already to fix the relief valve that has been leaking every time the power vent runs. So finally they said I need to new tank due to crud buildup. Luckily(?) i've been renting so they are going to swap it out for free. BUT since my venting pipes are all out of code (black ABS pipes), they need to change those out at a 'bargain' price of $250. (Pricing out at Lowes it'll cost me about ~$50 to do myself).

So do i get them to swap out my hotwater tank and then buy it from them or stick with the rental fees because im only planning on being in the house a couple more years? Or, just buy one myself. Is power venting really worth the extra $200 ontop of a regular tank price?

Homedepot online doesn't show any Power vented tanks...

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