To significantly reduce the electricity your water heater uses, lower the thermostat to 120°F, install a heavy-duty timer to cut power during idle hours, insulate the tank and first six feet of hot water pipes, and switch to low-flow showerheads to use less hot water.
Reducing water heater energy consumption can cut your annual utility bills by up to 10%. The most effective actions include lowering the thermostat to 120°F, insulating older tanks and pipes, fixing hot water leaks, and upgrading to a heat pump water heater.
Water heating accounts for about 18% of your home's energy use and is the typically the second largest energy expense in any home. You can reduce your water heating bills in four primary ways: Using less hot water. Using energy-saving strategies, such as turning down the thermostat on your water heater.
To calculate the cost of running a 1500-watt heater for 24 hours in the US, you need to know the electricity cost per kilowatt-hour (kWh). If the average cost is about 16 cents per kWh (as of early 2023), the heater uses 1.5 kW x 24 hours = 36 kWh. Therefore, the cost would be 36 kWh x 16 cents = 5,76.
If you keep your water at a high temperature all the time, you will lose more heat to the environment even if the cylinder is well insulated. Your water heating costs will increase in direct proportion to the average temperature of the cylinder over the day. You will end up paying for more energy as a result.
A 10-minute shower typically uses 12 to 25 gallons of hot water, depending on your showerhead's flow rate and how hot you keep the water.
The single biggest energy waster in a house is heating and cooling (HVAC), which accounts for roughly half of a home's total energy consumption. The main culprit is conditioned air escaping through poor insulation, leaky windows, and drafty doors, forcing systems to work overtime.
In most homes, Heating and Cooling (HVAC) systems drive the highest energy costs, accounting for nearly 40% to 50% of your total electricity bill. Following these, the appliances that run up your bill the most include water heaters, refrigerators, and laundry machines.
If your home uses electricity for central heating, the cost is likely still cheaper than running space heaters. According to Scerbo, “Buying a space heater for every room would increase the electricity bill more than if you had just bumped up the thermostat.”
The cheapest heaters to run are generally low-wattage personal heaters, such as halogen heaters or, for larger spaces, oil-filled radiators and infrared heaters that feature, or can be used with, adjustable thermostats to regulate energy consumption. Energy-efficient personal heaters like the Comfort Zone CZ35E are cost-effective choices for localized heating.
Some common causes of high water bills include:
Heating and Cooling
HVAC systems are typically the largest driver of energy costs. Running your furnace or AC more often in extreme weather can exponentially increase your monthly bill. These costs can make up more than half of your total electricity bill.
This problem usually comes down to capacity, heat production, or mixing issues inside your plumbing system. Sometimes the fix is simple, like adjusting your water heater temperature or flushing out sediment. Other times you may need a new mixing valve, an element replacement, or a different size water heater.
Two of the most common sources are standby heat loss and unnecessarily high temperature settings, both of which cause the system to consume more energy than necessary.
The Top Energy-Draining Appliance: Space Heating & Cooling
This includes both forced-air systems, heat pumps, furnaces, baseboards, window A/C units, and fans. Because they run for long periods and often at high wattage, they dominate the consumption profile.
It takes time for your home to warm up and cool down. If you're not sure how long it takes, try turning the heating on about 30 minutes before you need it. You should turn it off 30 minutes before you'll stop needing it.
Let's break down the top energy-consuming appliances in most homes and what you can do to keep costs under control.
Electric heating systems and tumble dryers tend to be the most expensive electrical items to run because they use large amounts of power over extended periods. Other high-cost appliances include electric ovens and immersion heaters. Using these efficiently and during off-peak hours can help reduce costs.
The 4-minute shower rule is a sustainability and cost-saving initiative advising people to limit their daily showers to four minutes or less. This practice helps conserve water, reduce energy used for heating, and lower household utility bills by limiting consumption to approximately 36–40 liters (roughly 9.6–10.5 gallons) per shower.
Older toilets (pre-2000) can use up to 13 litres per flush. Modern single-flush toilets typically use 6 litres. Dual-flush toilets offer a choice: typically around 4 litres for a half flush and 6 litres for a full flush.
Your tank size is the most significant determinant of how long you can have a hot shower: 30-gallon tank: ~5–7 minutes of hot water. 40-gallon tank: ~8–10 minutes. 50-gallon tank: ~10–12 minutes.
For a bedroom, the safest space heaters feature no glowing elements and include automatic shut-off and tip-over protection. Oil-filled radiators (like those by De'Longhi) and modern ceramic convection heaters with cool-touch housing (such as the Dreo Solaris) are generally considered the safest options for overnight use.
The most efficient way to heat a room depends on your setup. A ductless mini-split heat pump is the most efficient permanent option, operating at up to 300% efficiency. If you lack a heat pump, a portable infrared space heater or an oil-filled radiator is highly effective, as they convert all electrical energy directly into heat.