How Much Does It Cost to Run a Water Heater?

Quick Answer

An electric water heater costs $30-50 per month for a typical household (400-500 kWh). Gas water heaters cost about $15-30 monthly. Water heating accounts for 15-20% of home energy costs.

Key Takeaways

  • Tank water heaters keep water hot 24/7, losing heat through the tank walls (standby loss).
  • Heat pump water heaters use 50-70% less energy than standard electric.
  • Setting temperature to 120°F (vs 140°F) saves 10% on water heating.

Explanation

Tank water heaters keep water hot 24/7, losing heat through the tank walls (standby loss). A 50-gallon electric tank uses 4,000-5,500 watts when heating and averages 400-500 kWh monthly.

Gas water heaters are cheaper to operate because natural gas costs less per BTU than electricity. However, gas heaters have lower efficiency (60-70%) compared to electric (90-98%).

Tankless water heaters eliminate standby loss and can reduce water heating costs by 20-30%, but upfront costs are significantly higher. They're most efficient for lower-usage households.

Things to Know

  • Heat pump water heaters use 50-70% less energy than standard electric.
  • Setting temperature to 120°F (vs 140°F) saves 10% on water heating.
  • Insulating hot water pipes and the tank reduces standby losses significantly.

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