How Much Energy Does a Water Heater Use?

Your faucets, showerheads and plumbing appliances use lots of hot water. In fact, the Department of Energy says 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 an average water heater uses and helpful tips to reduce your water heating costs.

How Much Electricity Does an Electric Water Heater Use?

The exact cost to run an electric water heater depends on the size of the unit, how much you use it, its power needs and what you pay for electricity. For example, a medium-sized, 40-gallon water heater that needs 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 work per day, which arrives at $35 each month or $426 per year.

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

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 typical costs for natural gas. For instance, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for a couple of hours each 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 typically cost less to run than equivalent electric models because natural gas prices are likely to run lower than the price of electricity. Refine the calculations with your exact energy usage and rates to get 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 Your Hot Water Habits

Consider that each and every time you turn on a hot water faucet, you need to pay to heat it. Modify your day-to-day habits to reduce costs. Here’s how:

  • Take faster 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.

Seal Plumbing Leaks

Leaky faucets, showerheads and pipes can waste large quantities of hot water. For example, one drip per second wastes over 1,600 gallons per year. Eliminate this waste by fixing 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. New bathroom faucets must have flow rates below 1.5 gpm.

You can find quality, low-flow kitchen and bathroom fixtures for approximately $10 to $20 each, resulting in up to 60% savings on water use. Search for the ENERGY STAR® WaterSense label to increase efficiency without negatively impacting 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 inside the tank.

If the 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 insulation 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. Once 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, consider replacing it with an ENERGY STAR-rated model. A tankless water heater is one such option. This upgrade can save approximately 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

Midland Air Service Experts is your source for reliable, affordable water heater services in North America. Our highly trained technicians can fulfill any water heater repair or replacement request that comes our way. We carry top products from today’s best brands, including traditional tanks as well as tankless models, to suit your needs while staying in budget. To get the full details, please contact your local Midland Air Service Experts office today.

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