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How Much Energy Does My Water Heater Use?

Want to know how much energy your hot water unit is using daily? We compare gas and electric hot water systems, and show you how to calculate your energy usage.

Steven Bahbah By Steven Bahbah 5 min read

As technology keeps advancing, home appliances are becoming more efficient every day.

When buying new appliances, like water heaters, energy efficiency is usually a top concern for many. Traditional water heating systems tend to use a lot of energy to heat water.

Turning Dial Instant Hot Water Heater

You can choose different hot water heaters that suit your budget and lifestyle. You can choose from the following:

  • gas hot water system
  • solar hot water system
  • electric water heaters
  • continuous flow water heaters
  • water heat pumps

If you’re wondering how to cut down on your energy usage, the first step is to know how much energy your water heater consumes. This guide will walk you through understanding it. So, shall we dive in?

Electricity Consumption Of A Water Heater

Multiple variables determine the amount of energy that your water heater uses. These include its size and age, type, operating temperature, water consumed daily, and more.

To calculate the energy your heater uses, multiply the active hours by the cost per kWh and the watts used, then divide the result by 1000.

Gas Consumption Of A Water Heater

Gas water heaters are affected by the same factors that affect electrically powered options or electric water heaters. You can use the same formula to estimate the cost of running a gas hot water heater. Just replace the watt-hours with joules per hour.

The Operating Costs Of Electric And Gas Powered Water Heaters

Gas-powered water heaters are generally more efficient than electric ones due to the lower natural gas prices. While the above formula can help you determine the cost, this can be further refined by including other variables.

For instance, the amount of gas your water heater uses depends upon its EF or Energy Factor rating, and a higher rating indicates greater efficiency. The most efficient water heaters usually have a rating of around 0.67. So, always use alternative power sources, like solar hot water or heat pump water heaters. A heat pump can be three and a half times more efficient than a conventional ‘kettle-style’ electric heater. For gas, instantaneous and gas-boosted solar water heaters, the running costs and greenhouse emissions take the electricity use into account.

Power Consumption Of Tankless Water Heaters

Tankless water heaters save power because they don’t store hot water. Their efficiency depends on usage, which typically averages around two hours a day.

This makes them about 24-34% more efficient than tank-based ones in households using 155 litres or less water. Similarly, they are 8-14% more efficient in homes using 325 litres. However, purchasing and installing such systems is costlier than tank-based ones and may require replacing your home’s wiring.

Ways To Reduce Your Electricity Bill

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No matter if your water heater runs on gas or electricity, here are some tips to help you cut down on your bills.

1. Lowering The Thermostat

The thermostat of most water heaters is generally set to 60 degrees, but lowering it to 50 degrees can provide enough hot water while reducing the risk of scalding.

2. Reducing Your Shower Time

Reducing the time you spend in the shower won’t only help save water, but it is another effective method that can help lower your energy use. Also, you can turn off the shower while soaping up and turn it on again while rinsing.

3. Installing Low-flow Shower Heads And Faucets

There are different types of taps for your kitchen and bathroom. If you install low-flow showers and faucets, the water flowing through these fixtures will be reduced, thus lowering the heat required.

4. Insulating The Tank

An insulating blanket can help prevent heat loss from the water tank, reducing the heat required to warm the water again.

5. Selecting The Right Tank Size

Determine how much water your family needs and select a tank size accordingly. The tank should be able to hold enough water to meet everyone’s needs but not so large that much of the energy required for heating the water is wasted.

Person Writing Notebook Ways Save Money

Choose Your Water Heating System Wisely

The energy use of water heaters can differ widely based on the type, model, and other factors. But the formula we provided makes it easy for you to work it out.

Before deciding what type of water heating system you want to install in your home, calculate the cost of a hot water system. When considering the overall cost, make sure to take into account the cost of installation and regular maintenance. Specific models, such as solar or gas-powered, result in more significant energy savings but are expensive to purchase and install.

Check out our hot water system services at Fixed Today to help you make an informed decision. We’ve worked on different brands and water heating models, and our highly skilled team can install, repair and perform regular general maintenance on your hot water heater unit.

With that said, we shall be concluding this guide. Goodbye!

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Written by

Steven Bahbah

Steven Bahbah is the founder and CEO of Fixed Today Plumbing, one of Sydney’s most trusted 24/7 emergency plumbing companies. With more than a decade of hands-on experience across the trade, Steven built Fixed Today on a simple promise: licensed, fully-equipped plumbers who solve the problem the first time and don’t leave until the customer is 100% satisfied. His team is qualified under NSW regulations and services homes and businesses right across Sydney — from the Inner West and Eastern Suburbs to the Hills District, North Shore, Western Sydney and the Sutherland Shire. When Steven isn’t leading the team on the tools, he shares practical, no-nonsense plumbing advice to help Sydney homeowners avoid costly repairs and keep their homes running smoothly.

Find them on their website: Fixed Today, or on Facebook and LinkedIn.

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