How Much Energy Does a Water Heater Use? 

Your faucets, showerheads and plumbing appliances consume a lot of hot water. As a matter of fact, the Department of Energy reports that water heating is the second-largest utility cost behind space heating and cooling, accounting for roughly 18% of your monthly bill. Learn how much energy a typical 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 is determined by the size of the unit, how much you use it, its power needs and average costs for electricity. For instance, a medium-sized, 40-gallon water heater that draws 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 run per day, which comes to $35 monthly or $426 each year. 

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

If your water heater uses 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. As an example, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for two hours a day at a rate of $1 per therm costs about $0.62 to operate per day, which is approximately $18.60 per month or $226 each year. 

Gas vs. Electric Water Heater Costs 

As you can conclude from the examples above, gas water heaters usually cost less to operate than similar 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 build a more accurate picture of gas vs. electric water heater costs. 

Tips to Reduce Your Water Heating Bills 

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

Change Up Your Hot Water Habits 

Consider that each and every time you turn on a hot water faucet, you must pay to heat it. Modify your everyday 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. 
  • Launder your clothes in cold water if possible. 

Repair Plumbing Leaks 

Leaky faucets, showerheads and pipes can waste significant amounts of hot water. For example, one drip per second wastes over 1,600 gallons per year. Eliminate this waste by handling plumbing leaks as soon as you identify them. 

Install Low-Flow Faucets and Showerheads 

Modern rules 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 purchase 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 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 prevent 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 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 not sure how to proceed, ask a professional for help. When 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 

In case your 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 up to 34% on your water heating bills by producing 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 & Plumbing 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 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 learn more, please contact your local Service Experts Heating, Air Conditioning & Plumbing office today. 

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