How Much Energy Does a Water Heater Use? 

Your faucets, showerheads and plumbing appliances use plenty of hot water. As a matter of fact, 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 exact cost to run an electric water heater is based on the square footage of the unit, how much you use it, its power draw and what you pay 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 comes to $35 per month or $426 per year. 

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

If your water heater uses natural gas, you need 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 a couple of hours each day at a cost of $1 per therm costs about $0.62 to operate per day, which is approximately $18.60 monthly or $226 each year. 

Gas vs. Electric Water Heater Costs 

As you can conclude from the examples above, gas water heaters generally cost less to use than equivalent electric models because natural gas prices tend to run lower than electric prices. 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 using electricity or gas, you can lower your utility costs with these money-saving tips. 

Change Your Hot Water Habits 

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

  • Take quicker showers.  
  • Only run 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. 

Resolve Plumbing Leaks 

Leaky faucets, showerheads and pipes can waste significant amounts of hot water. For example, one drip per second adds up to more than 1,600 gallons each year. Eliminate this waste by fixing plumbing leaks as soon as you notice 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 purchase quality, low-flow kitchen and bathroom fixtures for approximately $10 to $20 each, resulting in approximately 60% savings on water use. Look for the ENERGY STAR® WaterSense label to maximize 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 lower the risk 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 tap. Adjust the water heater’s dial, wait two hours and check the water’s temperature. Repeat this process until the thermometer reads 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. Once 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 

In case your water heater is approaching the end of its life span, think about replacing it with an ENERGY STAR-rated model. A tankless water heater is one such option. This upgrade can save as much as 34% on your water heating bills by producing hot water on demand and eliminating standby heat loss. Save even more by replacing your hot water appliances with high-efficiency models, including your dishwasher and washing machine. 

Schedule Water Heater Services with an Expert 

Service Experts Heating, Air Conditioning & Plumbing is your source for dependable, affordable water heater services in North America. Our highly trained technicians can fulfill 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 within budget. To get the full details, please contact your local Service Experts Heating, Air Conditioning & Plumbing office today. 

Enjoy our blogs!

Keep checking back for more!

© 2024 Service Experts, Service Experts Heating & Air Conditioning, and the Service Experts logo and design are registered trademarks of Service Experts LLC and used under license by SE Canada Inc. All Rights Reserved. *Not applicable to the Advantage Program. See your signed Advantage Program Agreement for full details and exclusions. 100% Satisfaction Guarantee is subject to certain restrictions and limitations as set forth in the applicable Terms and Conditions.

Chat with a Service Expert technician