How Much Energy Does a Water Heater Use? 

Your faucets, showerheads and plumbing appliances consume plenty of hot water. Believe it or not, the Department of Energy states that water heating is the second-largest utility cost behind space heating and cooling, accounting for roughly 18% of your monthly bill. Discover how much energy the average 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 depends on the size of the unit, how much you use it, its power requirements and average costs for electricity. For 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 arrives at $35 per month or $426 each year. 

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

If your water heater runs on natural gas, you must consider the size of the unit, how much you use it, its power draw and what you pay 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 each day for a price of $1 per therm costs about $0.62 to operate per day, which is roughly $18.60 each 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 electricity costs. Fine-tune the calculations with your exact energy usage and rates to build 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 trim your utility costs with these money-saving tips. 

Revise Your Hot Water Habits 

Consider that every time you turn on a hot water tap, you have to pay to heat it. Modify your daily habits to reduce costs. Here’s how: 

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

Seal 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 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. Try to find the ENERGY STAR® WaterSense label to maximize 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 possibility of scalding at the tap. Just don’t go any lower than 120 degrees to discourage microbial growth within the tank. 

If 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 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 special jackets available at home improvement stores. Be mindful to install the jacket correctly to avoid creating a dangerous operating situation. When in doubt, ask a professional for help. After the tank is insulated, add insulation to the 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 one such 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 the 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 traditional tanks as well as tankless models, to suit your needs while staying in budget. To find out more, please contact your local Service Experts Heating, Air Conditioning & Plumbing office today. 

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