How Much Energy Does a Water Heater Use?

Your faucets, showerheads and plumbing appliances use a lot of hot water. In fact, the Department of Energy reports that water heating is the second-largest utility cost behind space heating and cooling, accounting for about 18% of your monthly bill. Find out more about how much energy a typical water heater uses and helpful tips to scale back your water heating costs.

How Much Electricity Does an Electric Water Heater Use?

The total cost to run an electric water heater is determined by the square footage of the unit, how much you use it, its power needs and what you pay for electricity. As an example, a medium-sized, 40-gallon water heater that needs 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 monthly or $426 per year.

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

If your water heater runs using 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 at a cost of $1 per therm costs about $0.62 to operate per day, which is approximately $18.60 per month or $226 per year.

Gas vs. Electric Water Heater Costs

As you can conclude from the examples above, gas water heaters generally cost less to run than equivalent electric models because natural gas prices tend to run lower than electric prices. Fine-tune the calculations with your exact energy usage and rates to create a more accurate picture of gas vs. electric water heater costs.

Tips to Reduce Your Water Heating Bills

Whether your water heater uses electricity or gas, you can cut your utility costs with these money-saving tips.

Change Your Hot Water Habits

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

  • Take shorter showers. 
  • Only use the dishwasher and washing machine with full loads. 
  • Limit pre-rinsing dishes before you load 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 per year. Eliminate this waste by fixing plumbing leaks as soon as you notice 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 about $10 to $20 each, resulting in approximately 60% savings on water use. Try to find 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 minimize the chance of scalding at the tap. Just don’t go any lower than 120 degrees to prevent microbial growth in the tank.

In case your water heater doesn’t include 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 measure 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 insulated jackets available at home improvement stores. Be mindful 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 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 another 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

Rolf Griffin 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 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 Rolf Griffin Service Experts office today.

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