Reducing Water Heating Costs
Practical tips and appliance upgrades for saving energy on your home's hot water usage, the second largest energy expense in most homes.
In this guide
- Adjust your water heater temperature
- Install low-flow fixtures
- Insulate pipes and tanks
- Wash clothes in cold water
- Consider a heat pump water heater
You can reduce water heating costs by lowering the tank's thermostat to 120°F, installing low-flow fixtures to reduce hot water usage, insulating older tanks, washing clothes in cold water, or upgrading to a highly efficient heat pump water heater.
The second largest energy expense
Water heating accounts for roughly 18% of the average home's energy consumption, making it the second largest energy expense after central space heating and cooling. Because it runs year-round, optimizing your water heating system offers massive savings potential.
Lower the thermostat
Many water heaters are set to 140°F at the factory. The U.S. Department of Energy recommends lowering this to 120°F. For every 10ºF reduction in temperature, you can save 3% to 5% on your water heating costs. Lowering the temperature also reduces the risk of scalding and slows mineral buildup in your tank.
Reduce hot water consumption
The simplest way to lower water heating costs is to use less hot water. The less you use, the less your appliance has to heat.
- Low-flow fixtures: Install WaterSense-labeled showerheads and faucet aerators. They maintain pressure while drastically reducing the gallons-per-minute (GPM) used.
- Cold water washing: Modern laundry detergents are designed to perform exceptionally well in cold water. Switching from hot to cold washes eliminates the energy required to heat the wash water.
- Full loads: Only run your dishwasher and washing machine when they are completely full.
Insulate your tank and pipes
Standard storage water heaters suffer from standby heat loss—the water cools down while sitting in the tank, forcing the heater to turn on and reheat it even when no one is using hot water. Insulating the first few feet of pipes entering and exiting the heater, and adding an insulation blanket to older tanks, can reduce standby heat losses by 25% to 45%.
Definitions
- Standby Loss: Energy wasted maintaining the temperature of unused water.
Example
If standby losses account for $80 of your annual bill, a $20 insulation blanket that halves those losses pays for itself in six months.
Upgrade to a heat pump water heater
If your electric water heater is nearing the end of its life, replacing it with a heat pump water heater (hybrid water heater) is one of the most lucrative energy investments you can make. Instead of using electrical resistance to create heat, they act like a refrigerator in reverse—extracting ambient heat from the air and pumping it into the water tank. They are typically two to three times more efficient than standard electric water heaters.
Limitations
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