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Giselle

September 16, 2024

– 11 min read

Guide to Reducing Water Heater Energy Costs 

Water Heater

Your water heater is a major energy user in your home, but you can cut costs by making smart changes. Lower the temperature to 120°F, fix leaks, insulate your tank and pipes, and use less hot water by taking shorter showers and washing clothes in cold water. Upgrading to a newer, energy-efficient model, like a tankless water heater, can also save significantly. Regular maintenance, like flushing the tank and checking the anode rod, keeps your system efficient. Simple steps can make a big difference in your utility bills without sacrificing comfort.

 

Water Heater
Photo from iStock – Credit: miniseries

Did you know that your water heater is one of the biggest energy users in your home? If you’re tired of seeing those high utility bills every month, it’s time to take control of your water heater’s energy costs. 

From setting the right temperature to making smart upgrades, there are plenty of simple steps you can take to save money without sacrificing comfort. 

Whether you’re in Lancaster, York, or Harrisburg, PA, these tips will help you keep your home running efficiently and your wallet happy. Let’s dive in!

 

Understanding Your Water Heater

Understanding your water heater is the first step in reducing those energy costs. Most homes in Lancaster, York, and Harrisburg, PA, rely on either a traditional tank-style water heater or a tankless version. A tank-style heater stores and heats water in a large tank, while a tankless heater heats water on demand.

Knowing the type of water heater you have can help you better manage energy usage. For example, if you have an older model, it might not be as energy-efficient as newer versions, meaning it uses more power to keep your water hot. 

Plus, the size and capacity of your heater can affect your energy bill. A larger tank uses more energy, especially if it’s heating more water than you need.

Being mindful of your water heater’s settings, such as the temperature setting, can also help you save on energy costs. For instance, setting the temperature too high not only increases your bill but can also lead to safety concerns, like scalding.

 

Why Reducing Water Heater Energy Costs Matters

Reducing your water heater’s energy costs isn’t just about saving money—it’s also about making your home more efficient and eco-friendly. 

Water heaters can account for up to 18% of your home’s energy use, making them one of the largest contributors to your energy bill. By cutting down on the energy your water heater uses, you can significantly lower your monthly expenses.

Moreover, reducing energy consumption helps decrease your carbon footprint, which is great for the environment. In areas like Lancaster, York, and Harrisburg, PA, where winters can be harsh, efficient energy use becomes even more important. 

Every bit of energy saved helps, especially when heating water, which you use every day for showers, dishes, laundry, and more.

 

Key Factors That Affect Water Heater Energy Costs

Understanding what drives up your water heater’s energy costs is key to finding ways to reduce them. Let’s look at some important factors:

Age of the Water Heater

Older water heaters tend to be less efficient and can significantly increase your energy costs. As they age, components like heating elements and insulation wear down, making the system work harder to heat water. This extra effort translates into higher energy usage and, consequently, higher bills. 

If your water heater is over 10 years old, it’s likely operating at a lower efficiency than newer models. Upgrading to a more energy-efficient water heater can save you money in the long run.

Size and Capacity

The size of your water heater directly impacts how much energy it uses. A larger tank means more water to heat and maintain at the set temperature, which can be wasteful if your household doesn’t need that much hot water. 

On the other hand, a tank that’s too small will struggle to keep up with demand, causing it to run more frequently and increase energy use. 

Choosing the right size water heater for your home’s needs can make a big difference in your energy bills. It’s all about finding that balance between too much and not enough capacity.

Insulation Quality

Insulation plays a crucial role in keeping your water heater efficient. Good insulation keeps the heat inside the tank, reducing the amount of energy needed to maintain hot water. 

Poor insulation allows heat to escape, which means your water heater has to keep reheating the water, using more energy and costing you more money. 

Checking your water heater’s insulation or adding a water heater blanket can help improve efficiency. Additionally, insulating the first few feet of the hot water pipes can further reduce heat loss.

 

Water Heater
Photo from iStock – Credit: Cunaplus_M.Faba

Tips for Reducing Water Heater Energy Costs

Now that you know what affects your energy costs, let’s dive into some practical tips to help you save money and boost efficiency.

Lower the Temperature Setting

One of the simplest ways to cut energy costs is by lowering the temperature of your heater. Many heaters are set to 140°F by default, but most households only need it set to 120°F. 

Lowering the temperature not only saves energy but also reduces the risk of scalding. It’s an easy adjustment that can make a noticeable difference in your utility bills without compromising comfort.

Use Less Hot Water

Reducing your overall hot water usage is another effective way to cut down on energy costs. Simple changes like taking shorter showers, fixing leaky faucets, and using cold water for laundry can add up over time. 

Installing low-flow fixtures in your showers and sinks can also help you use less hot water without sacrificing performance. By being mindful of how much hot water you’re using, you can see a significant drop in your energy consumption.

Insulate Your Tank and Pipes

Adding insulation to your tank and the first few feet of the hot water pipes is a great way to prevent heat loss. This keeps the water warmer for longer periods, so your system doesn’t have to work as hard. 

You can buy inexpensive insulating blankets or jackets designed specifically for this purpose. Insulating your pipes also means hot water gets to your faucets faster, reducing the wait time and saving both water and energy.

Fix Leaks Quickly

Even a small leak can waste a surprising amount of hot water, leading to higher energy bills. Regularly check your system and plumbing for any signs of leaks, such as damp spots, a drop in water pressure, or a sudden spike in your bill. 

Fixing leaks promptly prevents wasted energy and helps maintain efficiency. Don’t forget to check faucets and showerheads, as leaks there can also contribute to higher costs.

Install a Timer for Your Heater

If you have an electric model, installing a timer can help manage when it’s in use. A timer allows you to turn the heater off during periods of low demand, like overnight or when you’re not home, and turn it back on before you need it. 

This prevents the heater from running constantly and using energy when hot water isn’t needed. It’s a simple yet effective way to reduce standby energy loss and lower your utility bills.

 

Upgrade to an Energy-Efficient Water Heater

If your current system is old or inefficient, upgrading to a newer, energy-efficient model can lead to substantial savings over time. Let’s explore the benefits and options available.

Benefits of Energy-Efficient Models

Energy-efficient heaters are designed to use less power while still providing the hot water you need. These models often have better insulation, more efficient heating elements, and advanced controls that reduce energy consumption. 

Not only do they lower your monthly utility bills, but they also have a smaller environmental footprint. Additionally, many energy-efficient models come with rebates or tax incentives, making the initial investment more affordable.

Tankless vs. Traditional Heaters

When upgrading, one of the key decisions is whether to go with a tankless or traditional tank-style model. Tankless heaters, also known as on-demand heaters, only heat water when you need it, which can save a significant amount of energy compared to keeping a large tank of water constantly hot. 

They are generally more efficient and take up less space, but they can be more expensive to install. Traditional models, on the other hand, are typically cheaper upfront and are available in energy-efficient versions that still offer good savings.

 

Choosing the Right Energy Star Model

Looking for an Energy Star-certified model is a smart move when shopping for a new heater. Energy Star models meet strict efficiency guidelines set by the EPA and are guaranteed to use less energy than standard models. 

Whether you’re choosing a tank or tankless version, an Energy Star-certified heater ensures that you’re getting a product that will perform well and save you money. Make sure to select a size and capacity that fits your household’s needs to maximize efficiency and comfort.

Regular Maintenance to Improve Efficiency

Keeping your heating system well-maintained is crucial for ensuring it runs efficiently and lasts longer. Regular maintenance can help prevent costly repairs, reduce energy consumption, and keep your system in top shape. 

Even small tasks can make a big difference in performance and longevity. Let’s dive into some key maintenance tasks that can help you save money and improve efficiency.

Flushing the Tank

Over time, sediment and mineral deposits can accumulate at the bottom of your tank, causing it to work harder and use more energy. This buildup can reduce the system’s efficiency, making it take longer to heat up. 

Flushing the tank once a year helps remove this sediment, improving performance and extending the life of your heating system. 

It’s a simple process: just connect a hose to the drain valve and let the water run out until it’s clear. If you’re not comfortable doing this yourself, a professional can handle it quickly and safely.

Checking the Anode Rod

The anode rod is a metal rod inside the tank that attracts corrosive elements in the water, protecting the tank from rust. Over time, the anode rod corrodes and becomes less effective, leaving the tank vulnerable to damage. 

Checking the anode rod every couple of years and replacing it when it’s more than half worn can prevent rust and prolong the life of your system. 

A failing anode rod is a common cause of leaks, so this small maintenance task can save you from a major headache and expense. Keeping the rod in good condition is a simple way to keep your system running efficiently.

Inspecting the Heating Elements

For electric models, heating elements are what directly heat the water. If these elements are coated with mineral deposits or have become faulty, they can lose efficiency, causing your system to work harder and use more energy. 

Regularly inspecting the heating elements and cleaning or replacing them when necessary ensures that your system is heating effectively. 

If your showers are getting colder faster than usual or taking longer to heat up, it might be time to check these components. Properly maintained heating elements will help keep energy costs in check and maintain a consistent supply of hot water.

Cleaning or Replacing Filters

Some systems, especially tankless models, have filters that protect the unit from debris and sediment. Over time, these filters can become clogged, reducing the system’s efficiency and potentially leading to performance issues or damage. 

Cleaning or replacing the filters every few months helps maintain optimal water flow and prevents strain on the system. This simple step can greatly improve performance and efficiency, ensuring that the system operates smoothly. Clean filters contribute to a more reliable heating system and help keep your energy costs down.

 

Water Heater
Photo from iStock – Credit: Artem Tarasov

Smart Habits for Daily Use

In addition to regular maintenance, adopting smart daily habits can make a big difference in your energy costs. Small changes in how you use hot water can add up to significant savings over time, without requiring major investments or sacrifices.

Turn Off the Heater When Not in Use

If you’re going to be away from home for an extended period, like on vacation, turning off the heating system can save a lot of energy. There’s no need to keep heating water when no one is around to use it. 

Some models have a vacation mode, which lowers the temperature setting to save energy while still keeping the water slightly warm to prevent freezing. If your model doesn’t have this feature, simply turning it off or setting it to the lowest setting will do the trick.

Use Cold Water for Tasks When Possible

Not every task needs hot water, and using cold water can help cut down on energy use. For example, doing laundry with cold water instead of hot can significantly reduce your energy consumption, as most of the energy used in washing clothes goes into heating the water. 

Similarly, using cold water for tasks like washing your hands or rinsing dishes can make a noticeable difference. By simply opting for cold water when hot water isn’t necessary, you can lower your energy usage without much effort.

Schedule Hot Water Use

Using hot water strategically throughout the day can help your system operate more efficiently. For instance, spreading out showers, laundry, and dishwashing instead of doing them all back-to-back reduces the strain on your heating system. 

This approach allows the system time to recover between uses, preventing it from running constantly and using excess energy. By planning your hot water usage, you can keep the system running smoothly and avoid peak energy consumption times.

 

Ready to Slash Your Energy Bills?

Tired of high energy costs from your old, inefficient heater? At Benjamin Franklin Plumbing of Lancaster, we’re here to help homeowners in Lancaster, York, and Harrisburg, PA, make the switch to more efficient, cost-effective solutions. 

From expert maintenance to upgrading your system, our team can guide you every step of the way. Contact us today to learn how we can help you save money and improve your home’s efficiency!

 

Frequently Asked Questions 

How can I tell if my heater is using too much energy?

If you notice a sudden spike in your energy bills or if the system seems to run constantly, it may be using more energy than necessary. Older models, frequent repairs, or inadequate insulation can all contribute to higher energy consumption. Regular maintenance and monitoring of your energy bills can help you spot issues early.

How often should I perform maintenance on my system?

Regular maintenance should be performed at least once a year. Key tasks include flushing the tank, checking the anode rod, inspecting heating elements, and cleaning filters. Staying on top of these tasks can improve efficiency and extend the life of your system.

Is it worth upgrading to a tankless model?

Upgrading to a tankless model can be worth it if your current system is old or inefficient. Tankless models heat water on demand, which means they only use energy when hot water is needed, potentially saving you money in the long run. However, they can be more expensive to install, so weigh the initial costs against long-term savings.

Can I install insulation myself, or should I hire a professional?

You can install insulation on your tank and pipes yourself with materials available at most hardware stores. Insulating blankets and pipe wraps are relatively easy to apply. However, if you’re unsure about the process or want to ensure optimal results, hiring a professional can be a good choice.

What temperature should I set my heater to for maximum efficiency?

Setting your heater to 120°F is generally recommended for most households. This temperature is hot enough to meet most needs while minimizing energy use and reducing the risk of scalding. If your heater is set higher, consider lowering it to save on energy costs.

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