Learning how to reduce water heater energy costs can save your family real money every year. Water heating makes up about 18% of the energy used in a typical home, based on U.S. Department of Energy figures. It is often the second biggest energy expense after heating and cooling. The good news is that many fixes are cheap, quick, and easy.
The average home uses about 64 gallons of hot water a day. Families spend roughly $200 to $500 a year to heat it. With a few small changes, you can lower your water heating bills without giving up hot showers.
Easy Settings Changes That Lower Water Heating Bills
You do not need tools or a big budget to start saving. Some of the best fixes take just a few minutes.
Turn Down the Water Heater Temperature
Many water heaters leave the factory set to 140°F. That is hotter than most homes need. The Department of Energy suggests 120°F, which is warm enough for showers, dishes, and laundry. You can learn more in this guide to lowering your water heating temperature.
Here is why it helps:
- Every 10°F drop can cut water heating costs by up to 5%.
- Lower heat means less energy wasted while the water sits in the tank.
- Cooler water also slows mineral buildup in your pipes and tank.
- A lower setting can also reduce the risk of scalding, which matters in homes with kids.
Use the Vacation Setting When You Travel
Why heat a full tank of water when no one is home? Most water heaters have a vacation or low setting. Use it when you leave for a few days or more.
If you have a gas water heater, check your manual before you change it. Some models need to be relit the right way. If you are unsure, an HVAC technician can show you how.
Ways to Use Less Hot Water
The less hot water you use, the less energy your water heater needs. Small habits add up fast.
Fix Leaky Faucets Right Away
A drip may seem small, but it adds up. A faucet that leaks hot water makes your heater turn on again and again. Fixing a leak is one of the cheapest ways to save energy.
Check these spots once a month:
- Kitchen and bathroom faucets
- Showerheads and tub spouts
- Pipes under sinks
- The area around your water heater
Install Low-Flow Showerheads and Faucet Aerators
Low-flow fixtures use less water but still feel strong. They usually cost between $10 and $20. They can cut water use by 25% to 60%.
Showers use a lot of hot water in most homes. A low-flow showerhead is a smart place to start. Look for the WaterSense label when you shop.
Change a Few Daily Habits
Small changes can lower your hot water use without much effort. Try these ideas:
- Take shorter showers.
- Wash clothes in cold water when you can.
- Run the dishwasher only when it is full.
- Turn off the tap while you brush your teeth or shave.
Insulation Tips to Keep Hot Water Hot
Heat escapes from your tank and pipes all day long. This is called standby heat loss. Insulation helps stop it.
Add an Insulating Blanket to the Water Heater Tank
If your tank feels warm to the touch, it is losing heat. A water heater blanket can cut standby heat loss by 25% to 45%. That saves about 4% to 9% on water heating costs.
Safety matters here. Follow these rules:
- Do not cover the thermostat.
- Do not cover the top or bottom of a gas water heater.
- Do not block the burner area or the air vent.
- Follow the maker’s directions.
Newer tanks often have thick insulation already. If yours does, a blanket may not help much. A pro can check for you.
Wrap Hot Water Pipes
Pipe insulation keeps heat from escaping as water travels through your home. It can raise water temperature by 2°F to 4°F. It can also save another 3% to 4% a year on water heating.
Start with the first three feet of pipe near the tank. Foam pipe sleeves are cheap and easy to cut. Most homeowners can install them in under an hour.
Maintenance That Helps Your Water Heater Run Better
A well-kept water heater uses less energy and lasts longer. Many tanks last 8 to 12 years with good care.
Flush the Tank to Remove Sediment
Over time, minerals settle at the bottom of the tank. This sediment forms a layer between the burner or heating element and the water. Your heater has to work harder to heat the same amount of water.
Flushing the tank once a year can help. It also cuts down on rumbling and popping sounds. If you have hard water, you may need to flush more often.
Check the Anode Rod and Valves
The anode rod protects the inside of your tank from rust. When it wears out, the tank can start to rust. Have it checked every few years.
You should also test the pressure relief valve once a year. A technician can do this during a regular tune-up. Our team at David’s HVAC can look over your water heater and spot small problems before they get costly.
Upgrade to a More Efficient Water Heater
If your water heater is more than 10 years old, a new one may save more than repairs. Newer models use much less energy.
Tankless Water Heaters
A tankless water heater heats water only when you need it. It has no tank, so there is no standby heat loss. Gas tankless models can save up to 30% compared to a standard gas tank. They also last longer, often 20 years or more.
The cost to install is higher at first. For many homes, the energy savings help make up for it over time.
Heat Pump Water Heaters
A heat pump water heater pulls heat from the air around it instead of making heat from scratch. This can make it two to three times more efficient than a standard electric tank. It is a great fit for homes with electric water heaters and high power bills.
These units need some open space and work best in warm areas like a garage or basement. Look for the ENERGY STAR label. Some models may also qualify for rebates or tax credits, so check what is available in your area.
Drain Water Heat Recovery
Drain water heat recovery systems catch heat from used shower water. They use it to warm the cold water coming in. The Department of Energy says these systems can save 25% to 30% of water heating energy. They work best in homes with a lot of showers.
How to Choose the Right Size and Fuel Type
A water heater that is too big wastes energy. One that is too small runs out of hot water. Getting the right fit matters.
Match the Size to Your Household
A good rule is to think about how many people live in your home. A family of four often does well with a 50 gallon tank. Smaller homes may only need 30 to 40 gallons.
An HVAC pro can look at your needs and suggest the best size. This keeps your bills low and your showers hot.
Compare Gas and Electric Options
Gas water heaters often cost less to run in areas with low gas prices. Electric models can cost less to buy and are easy to install. Heat pump models are the most efficient electric choice.
The best pick depends on your home, your local utility rates, and your budget.
Simple Steps to Start Saving Today
You do not have to do everything at once. Start with the quick wins, like turning the temperature down to 120°F and fixing leaks. Then add pipe insulation or a tank blanket. If your heater is old, plan for an upgrade before it fails.
If you want help, David’s HVAC is ready to inspect your water heater, answer your questions, and suggest ways to lower your water heater energy costs. Call us or request service on davidshvac.com to get started.