Your faucets, showerheads and plumbing appliances use plenty 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 exact 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 average costs for electricity. As an example, a medium-sized, 40-gallon water heater that uses 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 run per day, which arrives at $35 monthly 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 the price for natural gas. For example, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for a couple of hours a day for a price 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 determine from the examples above, gas water heaters typically cost less to run than equivalent electric models because natural gas prices are likely 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 using electricity or gas, you can trim your utility costs with these money-saving tips.
Change Up Your Hot Water Habits
Keep in mind that every time you turn on a hot water faucet, you must pay to heat it. Modify your everyday habits to help with energy bills. Here’s how:
- Take shorter showers.
- Only run the dishwasher and washing machine with full loads.
- Limit pre-rinsing dishes before you load them into the dishwasher.
- Launder 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 adds up to more than 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 laws 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 find quality, low-flow kitchen and bathroom fixtures for about $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 reduce the chance of scalding at the tap. Just don’t go any lower than 120 degrees to avoid microbial growth in the tank.
In case your water heater doesn’t have 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 insulation correctly to avoid creating a dangerous operating situation. If you're unsure how to proceed, 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
In case your 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 up to 34% on your water heating bills by heating water on demand and getting rid of 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
Chief/Bauer Service Experts 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 work with top products from today’s best brands, including traditional tanks as well as tankless models, to suit your needs while staying within budget. To get the full details, please contact your local Chief/Bauer Service Experts office today.