I know the house will ultimately be heating this unit, but it seems like the house would be an order of magnitude more efficient at raising the temperature than a hot water heater would.
Is there a flaw in this logic?
Thanks,
Colin.
There's the rub!
More efficient? A very squishy "maybe", but don't count on it.
An order of magnitude more efficient?
NEVER! (At least not on an annual basis in heating-dominated Toronto!)
An electric HW heater & electric-resistance heating- no gain except in summer (but quicker recovery on the tank.)
A gas hot water heater v.s. 80% AFUE hot air heating system (assuming the furnace was properly sized), could be same story, but maybe not:
Gas hot water heaters have very high standby losses (primarily from flue-convection, but also from the insulation gap at the burner. As a result, the net efficiency is largely dependent on the volume of hot water used. The US Efficiency Factor (EF) is based on ~60gallons/day of use. If you use more than that you'll beat the EF number, if you use less than that you'll fall short- it's as simple as that. At 25 gallons/day a gas-fired tank with an EF of 0.65 will be under 50% efficent.
But AFUE is also a very squishy test, based on a ~30% duty cycle, and doesn't measure serious system-issues like duct leakage & insulation, duct balancing, etc. Most "typical" hot air systems run fully 15% or more below their AFUE as a
system, and it's the system that will be heating your tempering tank. If you're a average or high-volume user with an 80% AFUE (properly sized, so that the ~30% duty cycle test even has some validity) with you'll roughly break even on the tempering tank.
If it's a well balanced properly sized 95% condensing furnace, you'll beat the standard gas-fired tank efficiency tempering tank somewhat, but you haven't changed the standby losses of the tank-heater, only lowered the duty cycle of the burner a bit.
If it's a forced hot water heating system you have some of the same issues, but the distribution losses tend to be much lower than forced hot air, so only take 5% off the AFUE number assuming it's correctly sized, which means you'll beat it. But it probably isn't- 100-300% oversizing is frightfully common, and if it's 300% oversized you'll just break even with the tank efficiency.
But if you have forced hot water with an AFUE greater than 80% (even if oversized) the greenest thing you can do is install an indirect-fired HW tank heater running off the boiler- preferably a reverse-indirect plumbed as a buffer tank for the heating system (eg. ThermoMax, ErgoMax), which will raise the net efficiency of the heating system as a whole (with very SIGNIFICANT gains on an oversized boiler system, pulling it back up the efficiency cliff it had fallen over) and heat your water at the same system-efficiency, beating a self-standing tank every time. During the summer season it's efficiency will fall to about what a 60gallon/day tank heater would be, but not much lower than that. But the gains in system efficiency to the heating system more than make up for any slightly lower summertime HW heating performance.