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 roughly 18% of your monthly bill. Find out more about how much energy the average water heater uses and helpful tips to decrease your water heating costs.
How Much Electricity Does an Electric Water Heater Use?
The total cost to run an electric water heater is determined by the size of the unit, how much you use it, its power requirements and what you pay for electricity. For example, a medium-sized, 40-gallon water heater that needs 4500 watts and is active for two hours a day at a rate of $0.13 per kilowatt-hour (kWh) costs about $1.17 to work per day, which comes to $35 each month or $426 each year.
How Much Natural Gas Does a Gas-Fired Water Heater Need?
If your water heater runs using natural gas, you have to consider the size of the unit, how much you use it, its power draw and typical costs for natural gas. For example, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for two hours per day at a rate of $1 per therm costs about $0.62 to operate per day, which is roughly $18.60 monthly or $226 annually.
Gas vs. Electric Water Heater Costs
As you can see from the examples above, gas water heaters typically cost less to run than similar electric models because natural gas prices tend to run lower than electricity costs. Refine the calculations with your exact energy usage and rates to get 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 cut your utility costs with these money-saving tips.
Change Up Your Hot Water Habits
Keep in mind that each and every time you turn on a hot water tap, you have to pay to heat it. Modify your day-to-day habits to lower your bills. Here’s how:
- Take quicker showers.
- Only run the dishwasher and washing machine with full loads.
- Limit pre-rinsing dishes before you load them into the dishwasher.
- Clean your clothes in cold water if possible.
Seal Plumbing Leaks
Leaky faucets, showerheads and pipes can waste significant quantities of hot water. For example, one drip per second can waste as much as 1,600 gallons per year. Eliminate this waste by handling 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. New bathroom faucets must have flow rates below 1.5 gpm.
You can buy quality, low-flow kitchen and bathroom fixtures for about $10 to $20 each, resulting in up to 60% savings on water use. Search 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 reduce the chance of scalding at the tap. Just don’t go any lower than 120 degrees to discourage microbial growth inside the tank.
In case your 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 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 special jackets available at home improvement retailers. Be mindful to install the insulation correctly to avoid creating a dangerous operating situation. If you're unsure how to proceed, ask a professional for help. Once 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 the water heater is getting close to the end of its life span, look at 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 generating hot water on demand and cutting out standby heat loss. Save even more by replacing your hot water appliances with high-efficiency models, including the dishwasher and washing machine.
Schedule Water Heater Services with an Expert
Service Experts Heating & Air Conditioning is your source for dependable, affordable water heater services in North America. Our highly trained technicians can satisfy any water heater repair or replacement request that comes our way. We offer 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.