Water Heater Energy Saving Tips

Water heating accounts for 14-18% of the average home's energy bill - making it the second largest energy expense after heating and cooling. The good news is that several simple changes can significantly reduce what you spend on hot water every month, without sacrificing comfort.

This guide covers the most effective water heater energy saving tips, ranked from easiest to most impactful.

Tip 1: Lower the Thermostat to 120 Degrees F

This is the single easiest and most impactful change you can make. Many water heaters come from the factory set to 140 degrees F. Lowering to 120 degrees F:

• Saves 6-10% on water heating costs - typically $20-$60 per year
• Reduces standby heat loss (the energy used to keep water hot)
• Slows mineral buildup and corrosion inside the tank
• Reduces scalding risk

For electric heaters, turn off the breaker, remove the access panel, and adjust the thermostat dial. For gas heaters, simply turn the control knob to a lower setting.

Tip 2: Insulate the Water Heater Tank

Older water heaters have poor built-in insulation and lose significant heat through the tank walls - you can feel the warmth on the outside. Adding an insulation blanket reduces standby heat loss by 25-45%, saving $20-$45 per year.

This is a one-time investment that pays for itself within the first year.

Frost King SP60 Water Heater Insulation Blanket - 3 inch thick, R10 rating, fits most standard tank water heaters. Reduces heat loss and extends heater life.

Tip 3: Insulate Hot Water Pipes

Hot water pipes lose heat as water travels from the heater to your faucets. Insulating the first 6 feet of pipe coming out of the water heater - and any pipes running through unheated spaces - keeps water hotter as it travels, so you use less energy reheating it.

Foam pipe insulation sleeves are inexpensive and snap on in minutes. This also reduces the wait time for hot water at distant fixtures.

Tip 4: Fix Leaks Immediately

A hot water leak of just one drip per second wastes over 1,600 gallons of hot water per year - and all the energy used to heat it. Fix dripping faucets and leaking pipes promptly.

Gasoila Yellow PTFE Thread Seal Tape - fix minor pipe thread leaks quickly and inexpensively.

Tip 5: Flush the Tank Annually

Sediment buildup at the bottom of the tank insulates the heating element from the water, forcing it to use more energy to heat the same amount of water. A sediment-clogged heater can use up to 25% more energy than a clean one.

Flushing annually removes sediment and restores heating efficiency.

Sediment Buster Water Heater Tool - breaks up and removes compacted sediment for maximum heating efficiency.

Flexzilla Garden Hose 50ft - connect to the drain valve for easy annual flushing.

Tip 6: Use the Vacation or Low Setting When Away

If you are leaving home for a week or more, turn your water heater to the vacation or lowest setting. There is no point heating water to 120 degrees F when no one is home to use it. This can save a meaningful amount on longer trips.

When you return, turn it back to 120 degrees F and allow 1-2 hours to reheat before use.

Tip 7: Install Low-Flow Fixtures

Low-flow showerheads and faucet aerators reduce hot water consumption without reducing comfort. A standard showerhead uses 2.5 gallons per minute. A low-flow model uses 1.5-2.0 GPM - saving 20-40% of the hot water used in every shower.

Less hot water used means less energy needed to heat it.

Tip 8: Wash Clothes in Cold Water

About 90% of the energy used by a washing machine goes to heating the water. Switching to cold water washing saves significant energy and is just as effective for most laundry with modern detergents.

Tip 9: Replace the Anode Rod on Schedule

A depleted anode rod allows the tank to corrode, which reduces efficiency and shortens the heater's life. Replacing it every 2-3 years keeps the tank in good condition and maintains heating efficiency.

RV Water Heater Anode Rod 2-Pack - replace every 2-3 years to protect the tank and maintain efficiency.

Tip 10: Upgrade to a Tankless or Heat Pump Water Heater

The most impactful long-term change. Tankless water heaters eliminate standby heat loss entirely - they only use energy when hot water is actually being used. Heat pump water heaters use up to 70% less electricity than standard electric tank heaters.

If your current heater is approaching the end of its life, upgrading to one of these technologies can cut your water heating costs by 30-70%.

Rheem 18kW Tankless Electric Water Heater - no standby heat loss, heats only when needed, built to last 20+ years.

Ranein Natural Gas Tankless Water Heater - 8.5 GPM, 190,000 BTU, significantly lower operating costs than a tank heater.

Energy Savings Summary

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