What percentage of the electric bill is a water heater?

Author: Guillermo Crooks  |  Last update: Saturday, February 7, 2026

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.

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.

Does an electric water heater use a lot of electricity?

Kilowatts measure the rate at which electricity moves through an appliance. 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.

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 the electric bill the most?

What costs the most on your electric bill? 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.

SKY HIGH ELECTRIC BILL? Check your hot water heater!

What percentage of your electric bill is for hot water?

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.

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%

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.

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?

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!

How much does an electric 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.

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.

Do water heaters run when not in use?

In most instances, the answer to our last question is no. If your water heater is constantly running, there is probably a problem.

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.

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

Using a space heater 8 hours per day will use about 84 kilowatt-hours of electricity per week. It costs an average of $51.65 to run a space heater for a month and $258.26 to run for a year.

What is the markup on water heaters?

It's generally a sliding scale. We might markup a $3 valve to $5 (66%), but a $1,000 water heater might only go to $1,100 (10%). If it's a bigger job, I'd just apply 30–40% across the board.

How much does a water heater add to electric bill?

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

Can hot water heater cause high water bill?

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.

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.

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.

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.

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.

Why has my electric bill doubled for no reason?

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.

What raises the electric bill the most?

Whether you're using your air conditioner in summer or your furnace in winter, this makes up the biggest expense on your electricity bill. In fact, heating and cooling account for close to half of an average household's energy usage. The next highest contributor to your electricity bill is your water heater.

Do ceiling fans use a lot of electricity?

The Givoni or Woods diagrams show a direct relationship between air speed and the drop in temperature felt by users of the room. In this case, a ceiling fan will consume between 20 and 50 watts (still a long way from the consumption of an air-conditioning system (800 to 1500 watts, i.e. 30 to 40 times more).

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