My 11 year old water heater started to drip from the bottom slightly the other day. It was a cheap 6 year warranty unit I put in not long after I bought my house. I'd been on the fence about a HPWH for a while as my basement (used to) get fairly cold in the winter, bottoming out around 52-53 degrees. Lowe's had the Geospring on sale for $999 through 2/20/13. I figured that price, coupled with the $300 tax credit, isn't a whole lot more than a decent quality resistance element heater. I added the $99 warranty to cover the unit top to bottom for the full 10 years. I don't usually do the extended warranty thing, but that seemed like a fair price based on the number of parts and added complexity of the unit. A little over a month ago I installed a pellet burning furnace and the basement has warmed up fairly nicely. I run a dehumidifier from mid March to mid October, so maybe this will reduce the need to run the dehumidifier in the summer months. I'm hoping that the "waste heat" from the pellet furnace on the utility room side of the basement (about 800 square feet or so) will be enough to keep the water heater in hybrid mode or heat pump only mode during the coldest months. I plan on installing it later this week. I don't think there is any magic to it, but if anyone has any tips/tricks or hints I'm always willing to listen.