How Much Energy Does a Water Heater Use? 

Your faucets, showerheads and plumbing appliances consume a lot of hot water. In fact, the Department of Energy reports that water heating is the second-largest utility cost behind space heating and cooling, accounting for approximately 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 determined by the square footage of the unit, how much you use it, its power needs and local costs for electricity. For 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 comes to $35 each month or $426 each year. 

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

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 the price for natural gas. As an example, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for a couple of hours per day at a cost 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 usually cost less to operate than similar electric models because natural gas prices are likely to run lower than electricity costs. 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 runs using electricity or gas, you can cut your utility costs with these money-saving suggestions. 

Revise Your Hot Water Habits 

Remember that each and every time you turn on a hot water faucet, you have to pay to heat it. Modify your everyday habits to lower your bills. Here’s how: 

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

Seal 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 each year. Eliminate this waste by repairing plumbing leaks as soon as you discover 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. 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. Try to find 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 lower the chance of scalding at the tap. Just don’t go any lower than 120 degrees to prevent microbial growth in the tank. 

If your water heater doesn’t have 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 test 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 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 

If your water heater is nearing the end of its life span, look at 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 generating hot water on demand and cutting out 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 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 carry 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 & Plumbing office today.