So, I did a price comparison on water heaters since I may have to replace my electric water heater soon, and uh.. wow, the average energy usage difference in cost is pretty crazy. Prices are based on what I pay for natural gas/electric in my area in the states, usage is how many kilowatts/therms (1 therm is 99976.1 BTU) get used per hour. Daily usage is an estimate of how many hours each device uses per day.

@Kilroy hybrid electric is the heat pump ones, and 40g electric is resistive heat - right?

Try to place it in a spot where you can cycle out the cold air (exterior OR hvac vents) that the heat exchanger produces

@riking Yes!

I did plan on keeping the hybrid electric water heater in the basement. Help keep that cooler in the summer at least. Keeping it close to the furnace would allow me to make use of the radiant heat from that in the winter as well.

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