When it comes to heating your home, most people don’t think twice about installing a water heater. After all, they’re the most logical choice when it comes to keeping your home warm during colder months. However, many people overlook the fact that water heaters also make up a significant portion of your home’s monthly energy bill. In fact, according to the U.S. Department of Energy (DOE), heating and cooling account for around 50% of a typical homeowner’s utility bill each year. This statistic doesn’t take into account the costs you incur for utilities such as electricity, natural gas or oil. However, it does show how much energy is needed to heat your home throughout the year. Fortunately, there are a few ways you can save money by installing a water heater in your home. Here are some ways you can reduce your water heating costs:

Change your hot water setting

One of the easiest ways to save money on your water heating bill is to change your water heater’s hot water setting from "On" to "Hot." This may seem like an obvious choice, but many people leave this option set on "Hot" all year long. Why? Because they prefer their water to be scalding hot at all times. However, the hot water temperature isn’t something you need to keep at a constant 98 degrees Fahrenheit. In fact, studies have shown that Americans often overheat their water, resulting in millions of dollars spent on water heating bills each year.To save money on your water heating bill, try setting your water heater to "Hot" when you’re ready to take a shower or do the dishes. After all, these are activities you’re willing to forgo if your water isn’t hot enough. In addition, you can adjust the temperature further by installing a thermostat or setting a timer. This way, you’ll always have hot water when you need it without having to turn on the water heater.

Install an energy-efficient water heater

If you live in a part of the country that experiences cold winters, you may want to consider installing an energy-efficient water heater. According to the U.S. Department of Energy, an energy-efficient water heater can reduce your monthly water heating bill by up to 50%. If you’re in the market for a new water heater, you may want to ask your local utility company if they offer rebates or incentives for energy-efficient water heaters.If you decide to install a water heater, make sure you pay attention to the type. While there are several different water heater types that are widely available, the two most common are the tank-style water heater and the on-demand water heater. A tank-style water heater is a large tank that heats water as it’s needed. In contrast, an on-demand water heater heats water as it’s pumped into the home from the water main.

Change the size and type of your water heater

Another way to save money on your water heating bill is to change the size and type of your water heater. According to the U.S. Department of Energy, the average water heater size has remained the same since the 1960s – around 55 gallons. However, many people are now opting for larger water heaters. In fact, the average size of a residential water heater has increased to 60 gallons or more.As you’re comparing water heater sizes, it’s also a good idea to consider how often you use hot water. If you live in a part of the country that experiences extreme cold weather, you may want to consider installing a larger water heater to account for the fact that you’ll be using hot water more often.However, if you live in a region that experiences mild weather, a smaller water heater may be more cost effective. After all, smaller water heaters require less energy to heat water, which means they’ll save you money on your water heating bill.

Install a programmable water heater

You may not think of your water heater as having an "off" switch, but many water heaters do. If you live in a part of the country that experiences extreme weather, you may want to consider installing a programmable water heater. As the name suggests, a programmable water heater allows you to choose when your water heater heats water. This is a great option for people who have extremely irregular schedules, as it allows you to set your water heater to heat water when you need it most.For example, if you work the night shift, you may want to set your water heater to come on in the morning. Alternatively, if you have a baby that sleeps through the night, you may want to set your water heater to come on in the evening so it’s ready when you are.You can also use a programmable water heater to take advantage of cheaper rates during certain times of the year. For example, many energy providers offer cheaper rates during off-peak hours.

Conclusion

Water heating is an important part of keeping your home warm and comfortable throughout the winter. However, it accounts for a significant portion of your home’s energy bill. Thankfully, there are several ways you can reduce your water heating bills. First, you can change the hot water setting to "Hot." Next, you can install an energy-efficient water heater to reduce your energy costs. Finally, you can install a programmable water heater to set your water temperature when you need it most.

Frequently Asked Question

While you technically can install a hot water heater yourself as a homeowner, the likelihood that this is a good or safe idea is very slim. Trust the professionals with your hot water heater installation to make sure it's done correctly. You wouldn't want to cause yourself or your family any harm.
The higher cost is a result of a more labor-intensive set-up, as new gas and water lines are required for installation. For a new tankless water heater, new electric wiring will need to be installed.
Turn off all water supplies in the house. Turn on all the hot water faucets in the house in order to drain what is left in the existing hot water heater. Then, disconnect the water line that connects the water heater to the rest of the house. There is often a connection on a hose that you can simply unscrew.
These heaters can be fueled by electricity, gas, or liquid propane and installed in many areas of your home. The national average cost to replace a 50-gallon water heater is $1,100 to $2,800, with most people paying around $1,800 for a direct replacement of a 50-gallon gas hot water heater using the same model.
  • Your older water heater is getting up there in age
  • It's making strange noises
  • You're getting rusty water out of the tap
  • Your hot water doesn't last as long as it used to
  • There are water puddles around the unit
120 degrees Fahrenheit is the safety recommendation against scalding, but 140° is the common default setting. Most experts agree that anything below 120 degrees creates a risk for bacteria to develop inside your water heater from stagnant water, such as legionella that causes Legionnaire's disease.
Turn up the thermostat on the hot water heater. One of the easiest ways to make a hot shower last longer is by using less hot water while it's at a higher temperature. To do this, turn up the temperature on the thermostat that's attached to the hot water heater tank. (Not the thermostat on the wall.)
Sediment buildup shortens the life of your water heater and adds to your energy bill by reducing its efficiency. Draining two or three gallons of water is usually enough to flush out sediments, but always let the water flow until you no longer see particles in the bucket. Regular water heater maintenance will always extend its lifespan.
  • You're overusing hot water.
  • The water heater tank size is too small for your household.
  • Your hot water heater is tankless.
  • Sediment or minerals have built up in your water heating system.
Soft water can actually corrode the water heater anode faster. When the anode wears down, the corrosive elements will move on to the tank. So if left alone, a water softener system can actually shorten the lifespan of a water heater.