How much of your electric bill is the water heater?

Author: Fannie Eichmann  |  Last update: Wednesday, June 4, 2025

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.

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

According to the U.S. Department of Energy, about 18% of your electricity costs are directly tied to your water heating system.

Do water heaters use a lot of 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 is the water heater bill?

Tankless water heaters

The average home spends $400-$600 a year on water heating, so the savings can be up to about $200 a year. Purchase and installation prices range from $600 to $5,400, according to our review of online estimates.

What runs up your electric bill the most?

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.

How to Save Money on Hot Water Heater Electricity Bill

What drains the most electricity in a house?

Which home appliances use the most electricity?
  1. Heating and cooling: 45-50% The largest electricity consumer in the average household is your heating and cooling appliance. ...
  2. Water heater: 12% ...
  3. Lighting: 9-12% ...
  4. Refrigerator: 8% ...
  5. Washer and dryer: 5% ...
  6. Electric oven: 3% ...
  7. Dishwasher: 2% ...
  8. TV and cable box: 2%

What would cause my electric bill to spike?

Extra showers, more lights, and adjusting the thermostat even just a couple degrees can all add up to a higher electric bill.

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.

Do electric water heaters cost a lot to run?

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.

How to reduce electric water heater bill?

8 ways to lower your water heating costs
  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.

How much does a water heater cost per month?

Gas water heaters are generally less expensive to operate than electric water heaters. Based on national averages, electric water heaters cost $42 a month. Gas water heaters average $30. Of course, your water usage habits and water heater setting also affect monthly energy costs.

Should I turn my electric water heater off at night?

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.

Does turning off your hot water heater save you money?

Here's the catch: Modern water heaters are well-insulated meaning there is very little heat loss. Although electrical rates vary, the experts say turning off the water heater at night will likely save about two dollars a month.

Is a water heater high in electricity?

Electric water heaters generally use between 2 - 4 kWh daily, while heat pump water heaters are significantly more energy-efficient, typically consuming only 1 to 2 kWh per day. This is why heat pumps one of the most affordable, cost-effective and environmentally friendly choices.

How to tell if a hot water heater is causing a high electric bill?

In terms of your water heater, how quickly it heats water determines the overall energy efficiency of your unit. If your heater is taking too long to warm up the water for use throughout your home, it can send your electricity bill skyrocketing.

How much is the average electric bill for water heater?

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.

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.

What percentage of the electric bill is a 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.

How much electricity does a 40 gallon hot water heater use?

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.

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.

Does running water increase electric bill?

If the water you use comes from a well and pump, then your electric bill is dramatically impacted by how much water you utilize! Look on your pump controller and find out how many horsepower (HP) your pump is. At current electrical rate schedules each horsepower costs between $0.10 and $. 20 per hour to run.

What runs your electric bill up the most?

What uses the most electricity in my home?
  • Air conditioning and heating: 54%
  • Water heating: 16%
  • Refrigeration: 4%
  • Lighting: 4%
  • Appliances and electronics: 23%

Why did my electric bill go up $200?

The most common reasons for a big jump in your electric bill include changes in your lifestyle, increased usage of energy-hungry appliances, and sudden weather changes.

Does leaving things plugged in use electricity?

Did you know that when your appliances or electronic devices are plugged in, they're draining energy – even if they're not in use? Phantom power, also called standby power, refers to the energy that's wasted around your home when devices are plugged in and using power, but you're not actively using them.

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