How Much Energy Does a Water Heater Use?

Your faucets, showerheads and plumbing appliances consume a lot of hot water. As a matter of fact, the Department of Energy says 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 an 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 determined by the size of the unit, how much you use it, its power requirements and what you pay for electricity. As an example, a medium-sized, 40-gallon water heater that uses 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 operate per day, which comes to $35 per month or $426 annually.

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

If your water heater uses natural gas, you have to consider the size of the unit, how much you use it, its power draw and the price for natural gas. For instance, a medium-sized, 40-gallon water heater that uses .205 therms per hour and is active for two hours each day at a rate of $1 per therm costs about $0.62 to operate per day, which is roughly $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 usually cost less to run than comparable electric models because natural gas prices tend to run lower than the price of electricity. Refine the calculations with your exact energy usage and rates to get a more accurate picture of gas vs. electric water heater costs.

Tips to Reduce Your Water Heating Bills

Whether your water heater runs using electricity or gas, you can trim your utility costs with these money-saving suggestions.

Change Your Hot Water Habits

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

  • Take faster showers. 
  • Only use 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 large amounts of hot water. For example, one drip per second wastes over 1,600 gallons each year. Eliminate this waste by handling plumbing leaks as soon as you notice 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 find 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 maximize 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 minimize the possibility of scalding at the tap. Just don’t go any lower than 120 degrees to discourage 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 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 retailers. Be careful to install the insulation correctly to avoid creating a dangerous operating situation. When in doubt, ask a professional for help. After 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 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 up to 34% on your water heating bills by heating 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

Donelson Air 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 offer top products from today’s best brands, including conventional tanks as well as tankless models, to suit your needs while staying in your budget. To learn more, please contact your local Donelson Air Service Experts office today.

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