Saving Money with Electric Water Heating

Changing Habits to Reduce Energy Consumption and Save Money

© Beverly Bright

Jan 16, 2009
Water Heater Closet, Beverly Bright
Using hot water efficiently enables homeowners to save money every month on utility bills.

The water heater is the second largest energy user in the home, after space heating and cooling. Because it is out of sight, most people forget about this energy consumer and yet it uses more than 15% of the total average energy of a home. Making simple changes can create major savings in a home’s utility bills, with little effort.

The number of people living in the home and using water, the size of the tank and whether individuals shower or bathe are different factors affecting the amount of hot water used in a home. Obviously, a large family will use more hot water than an individual who does only two or three loads of laundry a week and seldom runs the dishwasher.

Reducing Water Temperature

Reducing the water temperature in the tank to the lowest possible setting that provides sufficient hot water will reduce energy consumption. Although installers set water heater temperature at 140 degrees F, settings between 115 degrees and 120 degrees work for most homes. For each 10 degrees F reduction in water temperature, water-heating energy consumption can be reduced by three to five percent.

Using Cold Water for Clothes Washing

Washing in cold water with cold water detergents is as effective as warm water on most clothing. Always use cold water rinse as rinsing with warm water has no benefit. Use hot water only when washing clothing that requires hot water settings.

Install a Water Heater Timer

Setting a timer to heat water only at specific times in a day can save on energy cost. The timer could be set to cut off the electricity to the heater at 10 p.m. and turn on at 5 a.m. the next morning. Not using energy for the water heater seven hours a day results in a 15% savings.

Adding Insulating Blanket

Blanket insulating kits can be added to the outside of the current water heater and will reduce heat loss and energy costs. Kits are available at most home improvement stores at minimum cost and are very easy to install.

Choosing a Smaller Tank Size

Choosing a smaller tank will reduce water usage by limiting how much hot water is available. Showers are preferable to tub baths as they take less water. If using tub baths, lower the water level to minimum sufficiency.

Spending extra money to replace the current water heater with more efficient appliances would be ideal, but insulation and a change of family habits cost nothing and will result in substantial savings on water heating. Public Service Company of Oklahoma has a useful household energy calculator chart to help estimate how much money different appliances cost to use monthly within the home.


The copyright of the article Saving Money with Electric Water Heating in Personal Budgeting/Finance is owned by Beverly Bright. Permission to republish Saving Money with Electric Water Heating in print or online must be granted by the author in writing.


Water Heater Closet, Beverly Bright
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