Your faucets, showerheads and plumbing appliances use a lot 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 roughly 18% of your monthly bill. Find out more about 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 is based on the square footage 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 uses 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 comes to $35 per 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 must 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 two hours a day at a cost of $1 per therm costs about $0.62 to operate per day, which is roughly $18.60 monthly or $226 per year.
Gas vs. Electric Water Heater Costs
As you can see from the examples above, gas water heaters generally cost less to use than similar electric models because natural gas prices have a tendency to run lower than electricity costs. Refine 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 trim your utility costs with these money-saving tips.
Change Up Your Hot Water Habits
Remember that every time you turn on a hot water tap, you have to pay to heat it. Modify your day-to-day habits to help with energy bills. Here’s how:
- Take shorter showers.
- Only use 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 quantities of hot water. For instance, one drip per second can waste as much as 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. A new set of bathroom faucets must have flow rates below 1.5 gpm.
You can buy quality, low-flow kitchen and bathroom fixtures for around $10 to $20 each, resulting in approximately 60% savings on water use. Look for the ENERGY STAR® WaterSense label to increase 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 risk of scalding at the tap. Just don’t go any lower than 120 degrees to prevent microbial growth within 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 reaches 120 degrees.
Add Insulation
Both electric and natural gas water heaters can be insulated with special jackets available at home improvement stores. Be careful to install the insulation 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 the hot and cold pipes coming from the water heater to help things heat up faster at the faucet.
Buy More Efficient Equipment
If the 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 another option. This upgrade can save as much as 34% on your water heating bills by producing 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
Golden Seal 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 budget. To learn more, please contact your local Golden Seal Service Experts office today.