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 states that water heating is the second-largest utility cost behind space heating and cooling, accounting for approximately 18% of your monthly bill. Discover how much energy a typical water heater uses and helpful tips to decrease 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 draw and average costs for electricity. For example, a medium-sized, 40-gallon water heater that draws 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 approaches $35 each month or $426 per year.

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

If your water heater runs on natural gas, you have to consider the size of the unit, how much you use it, its power draw and what you pay for natural gas. For example, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for two hours a day at a rate of $1 per therm costs about $0.62 to operate per day, which is approximately $18.60 monthly or $226 per year.

Gas vs. Electric Water Heater Costs

As you can determine 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 electricity costs. Refine the calculations with your exact energy usage and rates to get 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 suggestions.

Change Your Hot Water Habits

Keep in mind that each and every time you turn on a hot water faucet, you must pay to heat it. Modify your daily habits to lower your bills. Here’s how:

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

Repair Plumbing Leaks

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

You can purchase quality, low-flow kitchen and bathroom fixtures for approximately $10 to $20 each, resulting in approximately 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 standard setting is 140 degrees. Lower this to 120 degrees to save on water heating costs and lower the possibility of scalding at the tap. Just don’t go any lower than 120 degrees to prevent microbial growth inside 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 check 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 retailers. 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 around the hot and cold pipes coming from the water heater to help things heat up faster at the tap.

Buy More Efficient Equipment

In case your water heater is getting close to the end of its life span, look at 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

Fras-Air/General 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 your budget. To get the full details, please contact your local Fras-Air/General Service Experts office today.

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