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Buyout Direct Energy Hot Water Heater

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  • Apr 22nd, 2014 2:41 pm
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Deal Addict
Sep 5, 2009
3090 posts
1214 upvotes
That's what it looks like. I never received the notice the article talks about.

I emailed a few people on home stars who are coming out for an estimate. I will post estimates as I get them.
Deal Guru
User avatar
Dec 30, 2004
12875 posts
811 upvotes
Toronto
I received the notice / new agreement..

My heater is 12 years old but its a RP40 model (not listed in the Schedule "A") for the buyout. Thinking if I buy it out.. I won't have to buy and install a new one. Just use existing until its ready to be swapped out.

Edit: Sorry the buyout option is only effective after April 2. So it looks like I'll pay $75 (return the tank) and just get a new one installed.
Newbie
Nov 27, 2006
11 posts
is there a buyout price list? currently paying $25 per month rental. thanks.
Deal Guru
User avatar
Dec 30, 2004
12875 posts
811 upvotes
Toronto
Very good news! under the old contract the buyout price doesnt follow the 2012. its way cheaper.

12 year old tank costs $150 to buyout under old contract.


Call direct energy now to buyout the tank or go for the $75 option (return tank)
Deal Addict
User avatar
Nov 24, 2005
2295 posts
1065 upvotes
SW Ontario
belfour wrote: Very good news! under the old contract the buyout price doesnt follow the 2012. its way cheaper.

12 year old tank costs $150 to buyout under old contract.


Call direct energy now to buyout the tank or go for the $75 option (return tank)


are the prices for the old contract online, or did you call? ours is a 60 gallon heater, around 13 years old
Deal Guru
User avatar
Dec 30, 2004
12875 posts
811 upvotes
Toronto
tvwatcher wrote: are the prices for the old contract online, or did you call? ours is a 60 gallon heater, around 13 years old

I just called in and told me the price..

Agents try to explain this is not a buyout contract and keep telling me I can revert to old contract. I kept telling them I knew that and want to buyout anyways :D
Deal Addict
Sep 5, 2009
3090 posts
1214 upvotes
One of Home Depot's contractors came out today. I have a 60 gallon tank that was installed in 2004. To replace it with a Rinnai tankless system it would cost $3400. To replace it with a new tank the installer would charge $285 for installation. The cost of the tank at Home Depot I think is $799, I am going to double check tomorrow. So to replace my tank it would cost about $1085 plus tax.

Anyone else get estimates?
Deal Expert
User avatar
Mar 25, 2003
15853 posts
4375 upvotes
Markham
dgnr8 wrote: One of Home Depot's contractors came out today. I have a 60 gallon tank that was installed in 2004. To replace it with a Rinnai tankless system it would cost $3400. To replace it with a new tank the installer would charge $285 for installation. The cost of the tank at Home Depot I think is $799, I am going to double check tomorrow. So to replace my tank it would cost about $1085 plus tax.

Anyone else get estimates?

If you go with home depot, get a home depot card if you don't have one.
sometimes they have the don't pay for 1 year, which is good
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Deal Addict
May 3, 2005
1684 posts
418 upvotes
Woodbridge
I called in yesterday (busy hold times cause of this article and newsletter) and I was told that existing customers prior to 2010(?) had a choice. They could either continue with the old plan which allows you to pay $75 to have the tank removed or you could move to the new plan in which case you would have to buyout the tank if you no longer wanted their services.

I don't really see much of a difference between the new and old plans other than being able to return the unit for $75. I opted for staying on the old plan. You have to call in to ask this or you get moved to the new plan automatically. I don't agree with this method as it sounds very close to negative option billing which I thought was illegal in Ontario. The agent on the phone confirmed that if 3 months from now, if I want to return the tank, that all I would have to do is pay the $75 fee.

I'm hoping nothing else changed on my plan from yesterday's call. I'm supposed to get something in the mail to confirm the changes. Hopefully this gives me enough time to source out a new tank and get it installed in the next couple of months.

Lobo
Banned
User avatar
Jun 8, 2008
3977 posts
1407 upvotes
Toronto
Finally, after a long time on hold, I got through.

I have an 11 year old gas powered conventional vent 40 gallon water heater, never caused us any problems in the past. I pay $168/year to rent it. The current buy out cost is $161+tax. If I opt out of the new contract, it's $75 to return it to them. If I opt in, then the buy out becomes $452. We're buying it out now, if it lasts one more year, I'll be ahead. We're thinking of going tankless at some point in the future anyways.
Deal Addict
User avatar
May 28, 2009
1393 posts
355 upvotes
Ottawa
i just bought mine out $250. its just over 10 yrs old but its not power vented. (vents through the chimney). pay about $17 odd per month so lets hope it lasts atleast an yr. i am looking for infon on sacrificial anodes and where to buy them.
Member
Aug 12, 2011
219 posts
108 upvotes
NORTH YORK
dgnr8 wrote: Anyone else get estimates?

I actually was looking at estimates as well. I got one from buttons heating. It was $1100 + tax for 40 gal conventional bradford white water heater with installation. Here is their website. http://www.buttonsheating.com/ and they seem to be fairly well reviewed on website, which is why I don't mind spending a bit more than home depot. I actually spoke with Joe, their owner, so PM me if you want his contact.

However, the home depot lifetime warranty is appealing, but in all likelihood there shouldn't really be any issues with a conventional water heater. My other issue is that they use A plus air systems for water heaters which I've heard will add on costs and then if you don't decide to go with home depot after the estimate, you are out $40.

Hope that helps.
Deal Expert
User avatar
Oct 19, 2003
19489 posts
6651 upvotes
Toronto (Bloor West …
enigma54 wrote: 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've gone through buying/selling process a few times now and trust me, with the amount of paperwork you are churning through at the lawyers office it's easy to forget exactly what you've signed after a while. I had condos prior to my current home, and my current home came with an owned tank so I don't have any experience with water tank rentals though.
Member
Aug 11, 2004
360 posts
48 upvotes
Well I have not made my final decision yet. Approximately 18yr 40 gal cv tank 28$ buyout. So I know I'm on borrowed time as to when it will start leaking. As I understand it my options are 1) 28$ buyout 2) Purchase my own tank and have it installed, since my tank is greater than 15yrs Direct Energy should pick it up for free. 3) Call and tell them to leave me under the old rules till my tank dies. Then I'm still stuck with code compliance ie scald valve and approximately 6ft of "B" vent. Would there possibly be any other compliance issues besides vent and scald valve.
Deal Fanatic
Apr 20, 2011
7747 posts
2700 upvotes
ON
No brainer - buy it for $28. It's $75 to return it...
Start shopping for a new one yourself. Maybe wait a bit as I wouldn't be surprised if installers start gouging with a surge of people ditching DE right now.
Member
Aug 11, 2004
360 posts
48 upvotes
aqnd wrote: No brainer - buy it for $28. It's $75 to return it...
Start shopping for a new one yourself. Maybe wait a bit as I wouldn't be surprised if installers start gouging with a surge of people ditching DE right now.
I agree about the gouging issue. My thoughts about buyout vs have them pick up. As I read the contract it says they will pick up for free. Spend 28$ + what ever someone will charge to get rid of the damn thing vs. Have them pick up the old beast for free. Here is the quote from the contract.

"(There is no charge if you are more than 32km (20 miles) from a Direct Energy return location or if we fail to retrieve your water heater within two weeks of your request or your water heater has been rented for 15 years or more.)"
Deal Expert
User avatar
Oct 19, 2003
19489 posts
6651 upvotes
Toronto (Bloor West …
accat13 wrote: I agree about the gouging issue. My thoughts about buyout vs have them pick up. As I read the contract it says they will pick up for free. Spend 28$ + what ever someone will charge to get rid of the damn thing vs. Have them pick up the old beast for free. Here is the quote from the contract.

"(There is no charge if you are more than 32km (20 miles) from a Direct Energy return location or if we fail to retrieve your water heater within two weeks of your request or your water heater has been rented for 15 years or more.)"

Tell them to get rid of it. The only issue is trying to schedule things so you don't have to live without hot water for a period of time. Ideally you'll want to have them pick it up a couple of hours before you have the new one scheduled to be installed. I'm not sure how much (if anything) of the cost of having a new one installed by most companies is eaten by removal of old tank. I'm guessing they build it into the price and call it free, and perhaps it won't cost you any less to have the installers of the new tank take it anyway as they might not even discount it if there is no tank at all (and if you ask about it, they will probably skew their quotes).
Newbie
Jan 8, 2010
10 posts
Vaughan
I am looking to move to a another house this coming year (Hopefully).
I currently rent my unit. It was installed in November 15th 1997. Should I buy it out or keep with the old contract or any other suggestion.

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