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What are the most cost effective electric heaters? 

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Electric domestic hot water heaters are well suited for demand side management, as they possess high nominal power ratings combined with large thermal buffer capacities.
The most effective and least-cost solutions are found when the electricity sector is combined with the heating sector and/or the transportation sector.
Further, we find that heat pumps are not a cost-optimal choice, even with lower electricity prices or with increased renewables in the electric power system.
Electric heat pump air source water heaters may provide an opportunity for significant improvements in residential water heater energy efficiency in countries with temperate climates.
A major residential energy demand contribution is from electric heating, which, when combined with smart energy storage using water heaters, could be utilized to defer consumption to more inexpensive periods without affecting the customer's thermal quality of service.
Surprisingly, it may even be cheaper to give away 120,000 ‘smart’ water heaters!
Our cost comparison shows that it is much cheaper to acquire 30 MW, 120 MWh of capacity by retro-fitting 120,000 water heaters with control hardware and telecommunications.
Replacement with pellet heaters would also reduce global warming and the health cost of PM 2.5 emissions, estimated to exceed $3 800 per wood heater per year.
Considering that the extra cost of producing an EWH with an auxiliary heating element is less than US$50, the application of dual heaters is worth considering by the manufacturers.
The results show significant increase in the revenue when adding electric heaters.