If you’re one of those people that is absolutely obsessed with energy efficiency in your home (and be honest, who isn’t?), then you’ve most likely wondered whether or not you’re really getting the most out of your water heater. Assuming your water heater runs on electricity and not gas, you can expect to spend an average of $400 per year on powering your water heater. 

How is that Number Computed?

$400 is obviously a ball-park number, but it’s computed using a few common variables: size of home, amount of usage, and your local municipality’s electricity rates. The exact formula is as follows: price per kilowatt hour (or kWh), divided by the number of daily active hours, divided by 1,000. 

With that in mind, a typical American home that uses a tank for four hours a day (although a larger home with more people will understandably use more), and pays $0.10 per kWh will cost a little more than a dollar per day ($1.20, to be exact), or around $438 per year. That’s a lot of mojo running through your water heater.

What Can I Do to Reduce My Usage?

If you’re looking for a way to reduce your electricity usage directly from your water heater, you’re in luck! We have an entire article dedicated to that topic. Some of the more basic ideas involve reducing your usage (obviously), insulating your pipes, fixing leaks, or springing for a brand new water heater, preferably a tankless model which uses less water. 

Depending on the house, you may also benefit from using a gas-powered one instead. Though these units cost more initially, they also operate at about half the cost of an electric powered one at the same usage. You’ll have to have a professional install a gas powered heater though, since working on a gas line of any kind requires a permit.

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