Your faucets, showerheads and plumbing appliances use 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 an average water heater uses and helpful tips to decrease 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 needs and what you pay for electricity. For instance, a medium-sized, 40-gallon water heater that uses 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 work per day, which comes to $35 each month or $426 per year.
How Much Natural Gas Does a Gas-Fired Water Heater Use?
If your water heater runs on natural gas, you need to consider the size of the unit, how much you use it, its power draw and what you pay 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 a day at a cost of $1 per therm costs about $0.62 to operate per day, which is approximately $18.60 each month or $226 per year.
Gas vs. Electric Water Heater Costs
As you can see from the examples above, gas water heaters usually cost less to operate than similar electric models because natural gas prices tend to run lower than the price of electricity. Fine-tune the calculations with your exact energy usage and rates to create 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 lower your utility costs with these money-saving suggestions.
Change Up Your Hot Water Habits
Remember that each time you turn on a hot water tap, you need to pay to heat it. Modify your everyday habits to lower your bills. Here’s how:
- Take shorter showers.
- Only use the dishwasher and washing machine with full loads.
- Minimize pre-rinsing dishes before you load them into the dishwasher.
- Launder your clothes in cold water whenever possible.
Resolve Plumbing Leaks
Leaky faucets, showerheads and pipes can waste significant quantities of hot water. For example, one drip per second adds up to more than 1,600 gallons each year. Eliminate this waste by handling 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. New bathroom faucets must have flow rates below 1.5 gpm.
You can buy quality, low-flow kitchen and bathroom fixtures for approximately $10 to $20 each, resulting in approximately 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 minimize the risk of scalding at the tap. Just don’t go any lower than 120 degrees to avoid microbial growth within the tank.
If 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 insulated jackets available at home improvement stores. 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. Once the tank is insulated, add insulation to your hot and cold pipes coming from the water heater to help things heat up faster at the tap.
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 another option. This upgrade can save as much as 34% on your water heating bills by heating 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 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 within budget. To find out more, please contact your local Service Experts Heating & Air Conditioning office today.