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.
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***.
Common sense tells you the water heater doesn't use electricity when it's shut off so clearly you can save money. The energy experts say it's about $1.36 a day. The question you have to answer is whether it's worth it because there are some inherent problems with turning a water heater on and off.
If you have a leaking water heater, your water bill will increase. Most people don't think to check their water heater when they discover their water usage has been increasing month-over-month.
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.
A tank-style water heater consumes energy even when you're not using hot water, because the unit's gas burner or electric elements have to cycle on repeatedly to keep the water inside at the thermostat's temperature setting.
An increased utility bill is often caused by a change in water usage or a leak. Some common causes of increased utility usage include: A leaking toilet, or a toilet that continues to run after being flushed.
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.
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.
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.
Savings resulting from turning down your water heater temperature are based on reducing standby losses (heat lost from water heater into surrounding area). Set too high, or at 140ºF, your water heater can waste anywhere from $36 to $61 annually in standby heat losses.
Insulation Issues and Energy Loss
A lack of insulation around hot water pipes and tanks can result in substantial energy loss as heat dissipates into the surrounding environment. When heat escapes, the system needs to work harder to maintain the desired temperature, leading to higher energy consumption.
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.
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.
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.
The real issue lies in other appliances that are constantly drawing power, like refrigerators, televisions, and devices plugged into outlets. Hot Water Heater: One of the biggest energy consumers when you're not at home is your electric hot water heater.
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.
Older water heater tanks might not have the same energy efficiency rating as newer models. As tanks age, the insulating materials might deteriorate, causing them to lose heat faster. Consequently, the heater consumes more power to maintain hot water, leading to a higher electric bill.
Should you drain your hot water heater every year? Yes, but that's really just the bare minimum. You should really drain and flush your water heater twice-per-year: once in the spring, and then again in the fall. The reason why comes back to what a water heater is flushing out: minerals and sediment.