Save up to 10% on monthly utility bills Upon hearing that turning down the hot water tank about 20 degrees will result in lower energy costs, most people then ask just how much energy they will be saving by taking this extra measure.
Set too high, or at 140ºF, your water heater can waste anywhere from $36 to $61 annually in standby heat losses. Additional savings will be realized by the lower temperature for consumption (from water demand or use in your home, such as clothes washing, showers, and dishwashing). These may amount to more than $400.
It is cheaper to only put it on when needed. The reason for this is that the amount of electricity required to heat the water depends on how quickly the heat leaves the tank. Some will leave whenever you use the water, but some also leaves by getting out through the insulation.
Turn down the temp.
A good rule of thumb is to keep your water heater at 120 degrees—any higher than that increases the risk for scalding. Plus, for every 10-degree decrease in hot water temperature, you can save 3 to 5 percent on your water heating bill***.
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.
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.
Energy efficiency: Lowering the temperature on your water heater can help you save energy and reduce utility bills. Water heating is the second highest source of energy use in the typical household, so lowering the temperature can lead to bigger cost savings.
You won't see significant savings
Approximately $0.76 per day by shutting off their gas water heater. Approximately $1.36 per day by shutting off their electric water heater.
It's generally much cheaper to heat water using your central heating system, rather than using electricity with an immersion. The exception might be during the summer, when you have your central heating turned off, or if you have an old inefficient boiler.
Generally speaking, a gas water heater should not be turned off unless you are leaving the house for an extended period of time. Even then the better choice for gas water heaters is to just turn the temperature down. In fact, many water heaters have a “vacation” setting on the temperature control.
Although it takes longer and requires more fuel to heat cold water, the energy required to maintain this constant temperature is much more expensive than the few times it is heated when necessary on occasion, due to its non-use, this water is also wasted, as a result, running a boiler continuously consumes more fuel ...
Thermodynamics implies it's usually better to switch off water heaters while away, as heat loss daily can cost less than reheating once.
Turning your water heater off completely when it's not in use can help you save a small amount of money each month on your energy bills, but the hassle of manually turning your unit off and on typically outweighs the benefits.
During the colder months, you may have turned up the temperature to compensate for the colder water. However, during the warmer months, you don't need the water to be as hot, and a lower temperature setting can save you energy and money. Set the temperature to around 120 degrees Fahrenheit.
The best temperature setting for a hot water heater is between 120 and 140 degrees. Below 120 degrees, bacteria can develop in the stagnant water sitting in the tank. Above 140 degrees, the water is so hot that you and your family members can be at risk for scalding in as little as two seconds.
Making sure your water heater is always set to at least 120 degrees minimizes this risk, as the water should be hot enough to kill any bacteria. Even though most units will go up to 160 degrees, you really shouldn't ever set the temperature higher than 140 degrees in order to reduce the risk of scalding.
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.
Control your water temperature.
Though the DOE says you can save money on hot water by lowering the maximum temperature of your water heater from 140° F to 120° F, we don't necessarily recommend it.
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.
Don't set your water heater to anything below 120 degrees F, as diseases can develop in the stagnant water inside the water heater, particularly Legionella, which is quite dangerous.
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.
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.
Timers are most cost effective if you don't want to install a heat trap and insulate your water heater tank and pipes. Timers aren't as cost effective or useful on gas water heaters because of their pilot lights.