10/27/2019
Lots of people are cost conscious, especially as the colder months move in. One of the big questions often asked is:
“How Much Does the Hot Water Heater Affect My Utility Bill?”
Water heaters make it possible to take a hot shower, wash your hands in warm water, and many more activities -- just by turning on the hot water tap. However, hot water heating tanks use a significant amount of energy, which can make them costly to operate. Knowing how much the hot water heater affects your utility bill could help you take action to lower water heating costs.
Water heating systems are the second biggest user of electricity in the home, accounting for an average of 18 to 20 percent of electricity costs, and it is the largest expense after heating and air conditioning, according to the U.S. Department of Energy. Water heaters are rated by energy factor, or EF; the higher the EF, the more efficient the heater. EF is a rating of the amount of hot water produced daily per unit of fuel. For electric heaters, EF ranges from 0.75 to 0.95.
Calculating Energy Usage
An average water heater runs three hours daily. A 50-gallon, 5,500-watt water heater with a .90 EF and an electricity rate of $.16 per kilowatt hour will cost $781 to operate for a year.
Gas water heaters are typically cheaper to operate than electric. They also cost more upfront than an electric. However, based on energy savings, gas heaters generally make up the difference in price in about one year. Cost: $500 to $600 for gas; $600 to $700 for electric.
Tankless water heaters save money in the long run, but initial costs are higher than tank models. ... The U.S. Department of Energy estimates gas-fired tankless heaters save an average of $150 in energy costs per year over their traditional tank counterparts, while electric tankless heaters save $44 per year.
Tankless water heaters produce an endless supply of hot water, take up less space, have a lower risk of leaking, are safer, and have a significantly longer lifespan on average. The main disadvantage of tankless water heaters is their upfront cost (unit and installation) is significantly higher than tank-style heaters.
Periodic draining of older tanks can reduce the buildup of sediments and scale which coat the heating element of the tank and reduce efficiency.
If you have questions about your water heating needs, think you may need a repair, or are considering an upgrade or replacement, give us a call and we can help you find the best option and model to match your needs. We offer the best prices in the area whether you need a repair or a Professional installation on a new water heater and removal of your old unit.
