Are electric water heaters expensive to run? According to the Department of Energy, the average American household spends between $400 and $600 each year on water
Water heaters are among the highest energy-consuming appliances in your home. Energy star predicts that households spend between $400 and $600 on heating water every year for things like laundry, showers, and washing dishes, making water heaters the second most energy-consuming appliance in your home.
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.
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.
It is certainly possible for a water heater to increase your utility bill. Several factors can reduce the efficiency, including a unit that is too small, too old, bad water, or an incorrectly set thermostat can increase the energy bill. Leaks and long pipes can increase your water usage.
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.
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.
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.
Having a water heater that's too big or too small for your household is one of the main reasons you may be seeing higher energy bills. On average, a 30-gallon tank is sufficient for 2 people, a 40-gallon tank is good for 3-4 people, and a 50-gallon tank suits 4-5 people.
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.
Gas hot water systems (also called LPG hot water systems) typically cost between $750 and $1900 to buy. Solar hot water systems are the most expensive to buy at between $4000 and $10,000, but they are the cheapest to run.
Because these tanks need to keep a large volume of hot water constantly heated and ready for use, they tend to be very energy intensive. In fact, according to Energy Star, a 50-gallon conventional storage-tank water heater will use about $695 worth of electricity per year – more than any other appliance in your home!
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.
The labor cost to install a water heater through Home Depot ranges between $50 and $150 per hour. On average, you will spend between $100 and $450 because the installation usually takes two to three hours.
Choose carefully how you heat your water
The price of electricity is about three times the price of gas or oil. It's generally much cheaper to heat water using your central heating system, rather than using electricity with an immersion.
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.
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.
The frequent use of your water heater directly affects your monthly utility bills. Your water heater can account for almost 20% of the energy used for a home with a tank water heater. If your water heater is taking longer to heat the water, that means you'll spend more on your monthly energy bills.
An unusually high water bill is most often caused by a leak or change in water use. Some common causes of high water bills include: A leaking toilet, or a toilet that continues to run after being flushed, most common. A dripping faucet; a faucet drip can waster 20 gallons or more of water a day.
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.