How Much Energy Does a Water Heater Use?

Your faucets, showerheads and plumbing appliances use lots 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. Learn how much energy a typical water heater uses and helpful tips to decrease 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 needs and local costs for electricity. For instance, a medium-sized, 40-gallon water heater that uses 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 operate per day, which arrives at $35 monthly or $426 each year.

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

If your water heater uses 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 two hours per day at a rate of $1 per therm costs about $0.62 to operate per day, which is roughly $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 usually cost less to operate than comparable electric models because natural gas prices have a tendency to run lower than the price of electricity. Fine-tune the calculations with your exact energy usage and rates to get 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 trim your utility costs with these money-saving tips.

Revise Your Hot Water Habits

Keep in mind that each time you turn on a hot water tap, you need to 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 placing them into the dishwasher.
  • Wash your clothes in cold water as much as possible.

Repair Plumbing Leaks

Leaky faucets, showerheads and pipes can waste large amounts of hot water. For instance, one drip per second can waste as much as 1,600 gallons annually. 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 approximately 60% savings on water use. Search for the ENERGY STAR® WaterSense label to maximize efficiency without negatively influencing 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 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 tap. 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 insulated jackets available at home improvement retailers. 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. After 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 the water heater is approaching 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 up to 34% on your water heating bills by generating hot 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

Strogen's 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 in your budget. To find out more, please contact your local Strogen's Service Experts office today.

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