How Much Energy Does a Water Heater Use?

Your faucets, showerheads and plumbing appliances consume lots of hot water. In fact, the Department of Energy reports that water heating is the second-largest utility cost behind space heating and cooling, accounting for about 18% of your monthly bill. Discover how much energy a typical water heater uses and helpful tips to scale back your water heating costs.

How Much Electricity Does an Electric Water Heater Use?

The exact cost to run an electric water heater is based on the size of the unit, how much you use it, its power draw and what you pay for electricity. For example, a medium-sized, 40-gallon water heater that needs 4500 watts and is active for 2 hours a day at a rate of $0.13 per kilowatt-hour (kWh) costs about $1.17 to run per day, which comes to $35 monthly or $426 per year.

How Much Natural Gas Does a Gas-Fired Water Heater Need?

If your water heater uses natural gas, you need to consider the size of the unit, how much you use it, its power draw and typical costs for natural gas. For instance, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for a couple of hours per day at a cost of $1 per therm costs about $0.62 to operate per day, which is roughly $18.60 each month or $226 per year.

Gas vs. Electric Water Heater Costs

As you can conclude from the examples above, gas water heaters generally cost less to operate than similar electric models because natural gas prices are likely to run lower than the price of electricity. Refine the calculations with your exact energy usage and rates to build a more accurate picture of gas vs. electric water heater costs.

Tips to Reduce Your Water Heating Bills

Whether your water heater runs using electricity or gas, you can lower your utility costs with these money-saving tips.

Revise Your Hot Water Habits

Keep in mind that each and every time you turn on a hot water faucet, you must pay to heat it. Modify your day-to-day habits to reduce costs. Here’s how:

  • Take faster showers. 
  • Only use the dishwasher and washing machine with full loads. 
  • Avoid pre-rinsing dishes before you load them into the dishwasher.
  • Clean your clothes in cold water as much as possible.

Resolve Plumbing Leaks

Leaky faucets, showerheads and pipes can waste significant amounts of hot water. For example, one drip per second adds up to more than 1,600 gallons annually. Eliminate this waste by repairing plumbing leaks as soon as you identify them.

Install Low-Flow Faucets and Showerheads

Modern regulations require new showerheads to consume 2.5 gallons per minute (gpm) or less while kitchen faucets are limited to 2.2 gpm. A new set of bathroom faucets must have flow rates below 1.5 gpm.

You can find quality, low-flow kitchen and bathroom fixtures for around $10 to $20 each, resulting in up to 60% savings on water use. Look for the ENERGY STAR® WaterSense label to increase efficiency without negatively impacting performance.

Turn Down the Water Heater Temperature

The standard setting is 140 degrees. Lower this to 120 degrees to save on water heating costs and lower the possibility of scalding at the tap. Just don’t go any lower than 120 degrees to discourage microbial growth within the tank.

In case your water heater doesn’t include a temperature readout, determine the setting with a thermometer at the bathroom or kitchen faucet. Adjust the water heater’s dial, wait two hours and check the water’s temperature. Repeat this process until the thermometer reaches 120 degrees.

Add Insulation

Both electric and natural gas water heaters can be insulated with insulated jackets available at home improvement retailers. Be careful to install the insulation correctly to avoid creating a dangerous operating situation. When in doubt, ask a professional for help. After the tank is insulated, add insulation to the hot and cold pipes coming from the water heater to help things heat up faster at the faucet.

Buy More Efficient Equipment

If your water heater is nearing the end of its life span, think about replacing it with an ENERGY STAR-rated model. A tankless water heater is one such option. This upgrade can save approximately 34% on your water heating bills by heating water on demand and eliminating standby heat loss. Save energy and lower costs by replacing your hot water appliances with high-efficiency models, including your dishwasher and washing machine.

Schedule Water Heater Services with an Expert

Service Experts Heating & Air Conditioning is your source for reliable, affordable water heater services in North America. Our highly trained technicians can fulfill any water heater repair or replacement request that comes our way. We carry top products from today’s best brands, including conventional tanks as well as tankless models, to suit your needs while staying within budget. To get the full details, please contact your local Service Experts Heating & Air Conditioning office today.

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