Do electric water heaters cost a lot to run?

Author: Richie Balistreri I  |  Last update: Thursday, October 9, 2025

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 heating alone.

Do electric water heaters use much electricity?

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.

How much will my electric bill go up with an electric water heater?

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.

What is the downside of an electric water heater?

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.

How much does an electric hot water heater cost per month?

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.

Gas vs. Electric Water Heater. Cost to operate.

Can a water heater make your bill go up?

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.

Why is my water heating bill so high?

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.

What is the lifespan of an electric hot water heater?

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.

Is it worth switching to an electric water heater?

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.

Is it better to keep electric water heater on all the time?

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.

What uses the most electricity in a home?

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.

How to reduce electric water heater bill?

8 Ways to Reduce Water Heating Costs at Home
  1. Take faster showers. ...
  2. Run only full loads of dishes and laundry. ...
  3. Turn off water heater when vacationing. ...
  4. Lower your water heater's thermostat. ...
  5. Insulate your water heater. ...
  6. Insulate your pipes. ...
  7. Install low-flow faucets and showerheads. ...
  8. Use water-efficient appliances.

Why does my hot water heater use so much electricity?

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.

How much does an electric water heater add to your bill?

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.

What is the cheapest hot water system to run?

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.

How much electricity does a 50 gallon electric water heater use?

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!

What are the side effects of electric water heater?

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.

How much does Home Depot charge to install a water heater?

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.

Is it cheaper to heat water by gas or electric?

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.

How often should I flush my water heater?

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.

What is the most reliable brand of hot water heater?

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.

Does a water heater affect your electric bill?

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.

Why is my water bill $300?

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.

Why are water heaters so expensive now?

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.

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