Typically, a hot water heater that uses a tank will run for 3 to 5 hours per day. So, a 4,000-watt heater used for 3 hours a day at 10¢ per kWh will cost $1.20 per day, about $36.50 per month, or $438 per year.
Kilowatts measure the rate at which electricity moves through an appliance. More kilowatts mean more electricity, and bigger water heaters will typically use more watts. The average water heater runs at around 1125 watts, though some more powerful water heaters can use up to 4000 watts.
According to the U.S. Department of Energy, about 18% of your electricity costs are directly tied to your water heating system. If you've noticed a rise in your recent electric bills, don't start taking cold showers just yet.
Electric Water Heaters: Pros and Cons
Electric water heaters confer multiple benefits over gas units, including ease of installation, higher efficiency levels and safer operation. On the flip side, they have their own unique challenges, like slower heating and vulnerability during power outages.
For instance, a medium-sized, 40-gallon water heater that draws 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 comes to $35 each month or $426 each year.
Temperature Is Too High
The most obvious reason for a high water heater gas bill is if the temperature is set too high. According to experts, most homeowners should keep water heater temperatures between 120 and 140 degrees F.
Heating and cooling: 45-50%
The largest electricity consumer in the average household is your heating and cooling appliance. By a long shot. Central air conditioners and heaters use tons of energy in order to keep your home set to the right temperature.
While today's water heaters are better designed than older models, they still require regular maintenance in order to prolong their lives. With regular inspection, draining, and flushing, you can expect a gas water heater to last anywhere from 8-12 years and an electric water heater to last anywhere from 10-15 years.
Any energy savings from purchasing an electric water heater is likely eclipsed by a gas water heater in the long run because of gas prices. However, if your home is solar powered, it would make more sense to install an electric water heater since your solar PV system would generate power to offset your usage.
It's better to leave the hot water heater on all the time, rather than turning it on and off. This is a very common energy saving myth. But in fact, you really don't need to be heating your water all the time.
Faulty fixtures or leaking connections and pipes can go unnoticed at the water heater because it is not an appliance you see every day. The leaks can become significant and result in an increase in the water usage bill and your energy usage bill.
Higher wattage elements can lead to increased energy consumption, particularly if used inappropriately. A 5500 watt element may heat water faster but might not always be the most efficient choice for your household size. Conversely, a 4500 watt element can be more energy-efficient if your hot water demand is moderate.
For poorly insulated units, the heat loss can be fairly significant. Of course, losing heat in this way leads to more energy consumption and increased heating bills. Some estimates state that turning your water heater off at night could save you up to 10% on your monthly energy bills.
According to the Department of Energy, the average American household spends between $400 and $600 each year on water heating alone. This cost will vary depending on the electricity rates in your area and your water heating unit's efficiency.
Newer models require specialized tools and training to install, and the associated labor costs can add up quickly, making the total cost of the water heater higher than you expected. Be sure to ask about installation costs and if it includes special fees like additional pipes, wiring, or permits.
Overheating: Excessive heating can damage the heater and potentially cause burns or fires. Electrical Shocks: Faulty wiring or lack of electrical safety features can lead to electric shocks. Pressure Issues: High pressure can cause leaks or bursts, leading to water damage and appliance failure.
Typically, a hot water heater that uses a tank will run for 3 to 5 hours per day. So, a 4,000-watt heater used for 3 hours a day at 10¢ per kWh will cost $1.20 per day, about $36.50 per month, or $438 per year.
The average cost to replace a 50-gallon water heater is $700 to $1,800 for an electric unit or $1,000 to $3,100+ for a gas unit, including labor. A 50-gallon water heater costs $500 to $2,100 for the unit alone, depending on the fuel type, energy efficiency, features, and brand.
The Lifestory Research 2024 America's Most Trusted® Water Heater ranking is based on 6,547 opinions of people surveyed in the United States over the last 12 months. The most trusted water heater brands in order were Bosch, Whirlpool, Rheem, GE, Kenmore, AO Smith, Ruud, Bradford White, and Rinnai.
Most homeowners should flush their water heaters every 6 months or so, but if you have extremely hard water, you may want to do it more often. Flushing your hot water heater could be necessary as often as every few months depending on the mineral content of your local water supply.
Heating and cooling are by far the greatest energy users in the home, making up around 40% of your electric bill. Other big users are washers, dryers, ovens, and stoves. Electronic devices like laptops and TVs are usually pretty cheap to run, but of course, it can all add up.
According to the U.S. Department of Energy, standby power accounts for as much as 5% to 10% of residential energy use, and homeowners could save $100 to $200 each year on utility bills by unplugging devices that aren't in use.