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 says that water heating is the second-largest utility cost behind space heating and cooling, accounting for approximately 18% of your monthly bill. Discover how much energy an average water heater uses and helpful tips to reduce your water heating costs.

How Much Electricity Does an Electric Water Heater Use?

The total cost to run an electric water heater depends on the size of the unit, how much you use it, its power requirements and what you pay for electricity. For instance, a medium-sized, 40-gallon water heater that draws 4500 watts and is active for just two hours a day at a rate of $0.13 per kilowatt-hour (kWh) costs about $1.17 to operate per day, which arrives at $35 each month or $426 annually.

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

If your water heater uses natural gas, you must consider the size of the unit, how much you use it, its power draw and what you pay for natural gas. As an example, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for two hours each day for a price of $1 per therm costs about $0.62 to operate per day, which comes to $18.60 each month or $226 annually.

Gas vs. Electric Water Heater Costs

As you can determine from the examples above, gas water heaters usually cost less to use than similar electric models because natural gas prices have a tendency 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 expenses.

Tips to Reduce Your Water Heating Bills

Whether your water heater uses electricity or gas, you can cut your utility costs with these money-saving suggestions.

Change Your Hot Water Habits

Remember that each time you turn on a hot water tap, you must pay to heat it. Modify your day-to-day habits to lower your bills. Here’s how:

  • Take shorter showers. 
  • Only use the dishwasher and washing machine with full loads. 
  • Limit pre-rinsing dishes before placing them into the dishwasher.
  • Launder your clothes in cold water whenever possible.

Seal Plumbing Leaks

Leaky faucets, showerheads and pipes can waste significant quantities of hot water. For instance, one drip per second wastes over 1,600 gallons each year. Eliminate this waste by repairing plumbing leaks as soon as you notice 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 buy quality, low-flow kitchen and bathroom fixtures for around $10 to $20 each, resulting in as much as 60% savings on water use. Search for the ENERGY STAR® WaterSense label to maximize efficiency without negatively influencing 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 risk of scalding at the tap. Just don’t go any lower than 120 degrees to discourage microbial growth in the tank.

If the water heater doesn’t include a temperature readout, determine the setting with a thermometer at the bathroom or kitchen tap. Adjust the water heater’s dial, wait two hours and measure the water’s temperature. Repeat this process until the thermometer shows 120 degrees.

Add Insulation

Both electric and natural gas water heaters can be insulated with insulation jackets available at home improvement retailers. Be mindful to install the jacket correctly to avoid creating a dangerous operating situation. If you're unsure how to proceed, ask a professional for help. After the tank is insulated, add insulation around the hot and cold pipes coming from the water heater to help things heat up faster at the faucet.

Buy More Efficient Equipment

If the water heater is getting close to the end of its life span, think about replacing it with an ENERGY STAR-rated model. A tankless water heater is a good option. This upgrade can save approximately 34% on your water heating bills by generating hot water on demand and getting rid of 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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