How Much Energy Does a Water Heater Use?

Your faucets, showerheads and plumbing appliances use plenty of hot water. In fact, the Department of Energy states that water heating is the second-largest utility cost behind space heating and cooling, accounting for approximately 18% of your monthly bill. Find out more about how much energy the average 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 square footage of the unit, how much you use it, its power draw and average costs 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 operate per day, which comes to $35 each month or $426 annually.

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

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 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 a couple of hours per day for a price of $1 per therm costs about $0.62 to operate per day, which comes to $18.60 monthly or $226 each year.

Gas vs. Electric Water Heater Costs

As you can determine from the examples above, gas water heaters usually cost less to run than comparable electric models because natural gas prices have a tendency to run lower than the price of electricity. 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 uses electricity or gas, you can lower your utility costs with these money-saving suggestions.

Change Up Your Hot Water Habits

Consider that each and every time you turn on a hot water tap, you must pay to heat it. Modify your everyday habits to lower your bills. Here’s how:

  • Take faster showers. 
  • Only run the dishwasher and washing machine with full loads. 
  • Avoid pre-rinsing dishes before loading them into the dishwasher.
  • Launder your clothes in cold water if possible.

Resolve Plumbing Leaks

Leaky faucets, showerheads and pipes can waste significant quantities of hot water. For example, one drip per second adds up to more than 1,600 gallons per year. Eliminate this waste by repairing 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 find quality, low-flow kitchen and bathroom fixtures for approximately $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 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 minimize the chance of scalding at the tap. Just don’t go any lower than 120 degrees to avoid microbial growth in the tank.

If the water heater doesn’t have 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 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 careful 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 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 nearing the end of its life span, look at replacing it with an ENERGY STAR-rated model. A tankless water heater is one such 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

Becht/Givens Service Experts 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 traditional tanks as well as tankless models, to suit your needs while staying in your budget. To learn more, please contact your local Becht/Givens Service Experts office today.

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