Three Ways to Reduce Water Heating Costs

Hot water heaters are often the most overlooked appliance in ones home.  They sit in the basement (or garage if you live in a temperate climate) and just do their thing.

Most home owners only tend to them if the pilot light goes out (which is more and more rare in newer units), or when they spring a leak.

However, with minimal effort, you might be able to significantly reduce the costs of heating water in your home - without replacing your hot water heater.  After all, reducing your gas or electric bill is the ultimate goal of this site!

With winter knocking on the door, now is the time to expend this little bit of effort.

Traditional gas and electric tank water heaters are inefficient as a consequence of their design.  They heat a large tank of water and keep it hot whether you intend to use that water or not.  Away on vacation?  The water stays heated.  Just one person living in the home?  The entire tank stays heated - enough for a family.

Away on vacation?  The water stays heated.  Just one person living in the home?  The entire tank stays heated - enough for a family.

All the while the heat contained in the tank radiates outward, leading to continually having to heat and reheat the water to maintain temperature.

Adjust Your Water Heater's Thermostat

The best thing you can do is reduce the thermostat on the water heater. Generally, the best approach is an incremental approach - reduce it a little, and keep reducing it a little every couple of days until you think that it is about right.

However, it is important to not go too low, as bacteria loves warm wet environments. The lowest generally recommended temperature at the tank is 130 degrees F.

If your tank doesn't have a thermostat that reads in degrees, you can measure the water at a tap inside. Let it run for several minutes until it is fully hot. If the tap water reads 120 degrees F, you should be fine.

In fact, 120 degrees is the generally recommended optimum temperature at the tap - it reduces the risk of scalding, but is hot enough to minimize bacterial growth.

Take note of your dishwasher, however. It is recommended that dishwashers operate at 130 to 140 degrees. The good news is that most dishwashers these days have a water heating option, so it is OK to turn down the water heater if you are using the pre-heating option on the dishwasher.

Insulate the Pipes from your Water Heater

If you have ever touched the pipes connecting to your water heater, you've likely noticed that they get quite warm. Depending on the design of your heater, even the supply line and overflow lines can radiate heat.

The simplest solution is to purchase some tube pipe insulation. This is typically a black foam, and may have an adhesive to allow for it to stay in place. If the type you find doesn't have adhesive, or it is not adequate, use some wire-ties to secure the insulation.

You'll need to know the diameter of your pipes to purchase the correct size, so it is probably best to go to your local hardware store to purchase.

A more advanced solution is to install a 'heat trap' on your pipes. These are special valves to prevent hot water flow in the wrong direction and reduce convection. However, you must be able to solder pipes effectively to install these, so this is not a job for a novice.

One side note - some hot water heaters are now sold with heat traps included. If this is the case, you can likely skip this step and move on to the next.

Insulate the Entire Tank

If your hot water heater feels warm to the touch on cool mornings, then it is not well insulated. If this is the case you'll benefit from an insulating blanket, specially made for hot water heaters.

Your first step will be to identify the size of your tank, as the blankets are designed to fit specific sizes.

Extra care must be taken if installing on a gas hot water heater. Gas water heaters need proper ventilation around the flue, and in general the top of a gas water heater should not be insulated. Follow the instructions carefully!

Other Water Heater Tips

Remember that water heaters only last for 10 or 15 years on average. If yours is near the end of its expected life if may not be worth spending too much on it. However, each of the steps described above can be accomplished for less than $30 or $40 in total.

When it is time to buy a new water heater, evaluate your situation - you may be able to purchase a smaller one and enjoy continuous energy savings. If you have upgraded your washing machine and dishwasher to more efficient ones, and have installed low-flow showerheads, you may be able to get a smaller water heater.

Also, consider a tankless water heater - these are the most efficient of all.