How Much Energy Does a Water Heater Use?

Your faucets, showerheads and plumbing appliances consume lots of hot water. As a matter of fact, the Department of Energy says that water heating is the second-largest utility cost behind space heating and cooling, accounting for about 18% of your monthly bill. Find out more about how much energy an average water heater uses and helpful tips to scale back 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 square footage of the unit, how much you use it, its power draw and local costs for electricity. As an example, a medium-sized, 40-gallon water heater that draws 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 work per day, which comes to $35 monthly or $426 each 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 the price for natural gas. For example, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for two hours each day at a rate of $1 per therm costs about $0.62 to operate per day, which comes to $18.60 per month or $226 annually.

Gas vs. Electric Water Heater Costs

As you can see from the examples above, gas water heaters typically cost less to operate than comparable electric models because natural gas prices have a tendency to run lower than electric prices. Fine-tune 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 uses electricity or gas, you can cut your utility costs with these money-saving tips.

Revise Your Hot Water Habits

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

  • Take faster showers. 
  • Only run the dishwasher and washing machine with full loads. 
  • Avoid pre-rinsing dishes before placing them into the dishwasher.
  • Wash your clothes in cold water if possible.

Resolve Plumbing Leaks

Leaky faucets, showerheads and pipes can waste significant amounts of hot water. For example, one drip per second can waste as much as 1,600 gallons per year. 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 buy quality, low-flow kitchen and bathroom fixtures for about $10 to $20 each, resulting in as much as 60% savings on water use. Look for the ENERGY STAR® WaterSense label to maximize efficiency without negatively influencing performance.

Turn Down the Water Heater Temperature

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

If 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 measure the water’s temperature. Repeat this process until the thermometer reads 120 degrees.

Add Insulation

Both electric and natural gas water heaters can be insulated with insulated jackets available at home improvement stores. Be careful to install the insulation correctly to avoid creating a dangerous operating situation. When in doubt, ask a professional for help. When 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 your water heater is approaching 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 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 reliable, 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 work with top products from today’s best brands, including conventional tanks as well as tankless models, to suit your needs while staying in your budget. To learn more, please contact your local Service Experts Heating & Air Conditioning office today.

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