The plumbers installed the high efficiency 50 gallon gas hot water tank in our garage. It is vented directly to the roof of the house through the pre-installed vent seen in the photo.  The unit easily connects to our PEX water lines and should service our hot water needs adequately. 

   There are several newer options for hot water heaters on the market, with ultra efficiency gas or electric units that employ a helix shaped element and computer controls, to continuous water tanks that heat the water as you go.  These options can add several hundred to several thousand dollars over a simple gas or electric water heater.  To cut the initial costs of home construction and open the option to upgrading the unit later with possible environmental tax credit dollars, we simply opted to keep the basic gas water heater unit offered with our home.