How Much Energy Does a Water Heater Use? 

Your faucets, showerheads and plumbing appliances use plenty of hot water. Believe it or not, 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. Learn how much energy a typical 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 is determined by the size of the unit, how much you use it, its power requirements and average costs for electricity. As an example, a medium-sized, 40-gallon water heater that needs 4500 watts and is active for just 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 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 typical costs for natural gas. As an example, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for two hours per day for a price of $1 per therm costs about $0.62 to operate per day, which is approximately $18.60 per month or $226 annually. 

Gas vs. Electric Water Heater Costs 

As you can conclude from the examples above, gas water heaters generally cost less to use than comparable 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 expenses. 

Tips to Reduce Your Water Heating Bills 

Whether your water heater runs on electricity or gas, you can lower your utility costs with these money-saving suggestions. 

Change Your Hot Water Habits 

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

  • Take faster showers.  
  • Only use the dishwasher and washing machine with full loads.  
  • Limit pre-rinsing dishes before you load them into the dishwasher. 
  • Clean your clothes in cold water if 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 per year. Eliminate this waste by fixing 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 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 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 reduce the possibility of scalding at the tap. Just don’t go any lower than 120 degrees to discourage microbial growth inside the tank. 

In case 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 shows 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. If you’re unsure 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 faucet. 

Buy More Efficient Equipment 

If your water heater is approaching the end of its life span, consider replacing it with an ENERGY STAR-rated model. A tankless water heater is another option. This upgrade can save approximately 34% on your water heating bills by producing hot water on demand and cutting out 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 

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 work with top products from today’s best brands, including conventional tanks as well as tankless models, to suit your needs while staying in your budget. To find out more, please contact your local Service Experts Heating, Air Conditioning & Plumbing office today. 

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