How to Save on Water Heater Bill

Posted December 26, 2024

Water heating is a significant part of your home’s energy consumption, accounting for 14% to 25% of total energy use. Even small changes can lead to substantial savings on your utility bills. Here are actionable tips to make your water heater more efficient and reduce costs.

1. Lower Your Water Heater Temperature

Reducing your water heater’s temperature is one of the easiest ways to save energy. To check if this step is right for you:

  1. Measure the hot water temperature at the farthest faucet from your water heater.
  2. Adjust the thermostat to maintain a temperature between 115°F and 120°F for safety and comfort.

Consult your water heater’s manual or a professional plumber if you’re unsure how to adjust the thermostat.

2. Insulate Your Water Heater with a Blanket

Wrapping your water heater tank in an insulating blanket helps reduce energy loss and improve efficiency. Follow these tips:

  • Use a water heater blanket, available at most hardware stores.
  • For gas models, avoid covering the top, bottom, thermostat, and burner compartment.
  • Insulate the first 6 feet of hot and cold water pipes to reduce heat loss further.

Always follow the manufacturer’s safety instructions when installing a water heater blanket.

3. Install Low-Flow Fixtures

Low-flow plumbing fixtures reduce water waste without sacrificing performance. Consider:

  • Low-flow shower heads: These can either replace your existing shower head or be installed as an inline fixture.
  • Low-flow faucets: These help conserve water in sinks and other areas.

These fixtures reduce hot water usage, lowering both water and energy bills.

4. Treat Your Water

Treating your home’s water reduces chlorine, calcium, and mineral buildup inside your water heater. Mineral buildup:

  • Decreases efficiency by up to 50%.
  • Shortens the lifespan of your water heater.

Installing a water treatment system improves efficiency, protects your appliances, and reduces damage to faucets and pipes.

5. Wash Clothes in Cold Water

About 90% of the energy used in laundry is for heating water. Switching to cold water:

  • Saves energy and reduces your water heating costs.
  • Works effectively with cold-water detergents available on the market.

6. Upgrade to an ENERGY STAR Tankless Water Heater

When it’s time to replace your old water heater, consider an ENERGY STAR-certified tankless water heater. Benefits include:

  • Up to 60% savings on water heating costs.
  • Unlimited hot water on demand.
  • A lifespan 2–3 times longer than conventional water heaters.
  • Potential eligibility for energy efficiency tax rebates.

Learn more about ENERGY STAR-certified appliances at energystar.gov.

Additional Tips to Save on Your Water Heater Bill

  • Schedule annual water heater maintenance to ensure efficiency and detect issues early.
  • Flush your water heater to remove sediment buildup that reduces efficiency.
  • Seal leaks and insulate pipes, especially in colder climates like Chicagoland.
  • Use shorter showers and avoid unnecessary hot water use to reduce energy consumption.

Have Questions About Water Heater Efficiency?

At ABC Plumbing, Sewer, Heating, Cooling, and Electric, we offer expert advice, maintenance, and upgrades to improve your water heater’s efficiency. Scroll further down this page, locate the location closest to you, and click the phone number to call us. Our team is here to help you save money and stay comfortable year-round.

ABC Plumbing Locations

Arlington Heights, IL

220 W Campus Dr
Arlington Heights, IL 60004
Phone: (888) 991-3942

Evanston, IL

828 Davis St UNIT 205
Evanston, IL 60201
Phone: (888) 868-9369

Downers Grove, IL

1001 Ogden Ave LL4
Downers Grove, IL 60515
Phone: (888) 412-3566

Tampa, FL

4326 W El Prado Blvd Suite 7
Tampa, FL 33629
Phone: (888) 594-9030

Largo, FL

11701 S Belcher Rd Suite 127
Largo, FL 33773
Phone: (888) 465-9799


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