9 Ways to lower water heater cost

✔ 1. Turn down thermostat. For each 10º reduction, save 3-5% operating cost. see how

✔ 2.Wrap water heater with insulation and save 4-9% operating cost. read1 US Dept of Energy suggests R-8 which equals 2-1/2" fiberglass insulation. Home centers sell ready-to-use blanket for $20. Payback less than 1 year.

Insulation tips: Do not obstruct TP valve. Leave access to drain.
Electric water heater: OK to insulate entire tank.  
Gas water heaters: NO insulation on top of tank -or- over draft air inlet -or- air intake opening -or- around gas control valve 

✔ 4.  Turn off 2nd water heater. Save $40 a month right now.

✔ 5. Add switch to hot water circulation system. Thermostatically controlled Grundfos UP15-10SU7/TLC circulation pump uses 29 watts and costs modest $25 per year, but water heater also runs additional hours. Consider circulation system that uses a timer so hot water is scheduled see.

✔ 6. In regions with hard water, flush tank every six-months or more. Build-up of calcium carbonate reduces heating efficiency in both electric and gas water heaters. With electric heater, calcium carbonate can short out bottom element. See steps to clean tank. Frequent flushing plus a water heater timer could eliminate need for water softener..

✔ 7. Install a water heater timer if you can schedule hot water read1 read2. If you have old heater, start fresh: clean out tank, replace anode rod, lower thermostats, wrap heater with insulation, and install a timer.  Go next door and install a timer for your neighbor.

✔ 8. Smaller tank. Next time you replace water heater, put in smaller tank. Anticipate that water heater lasts 6-12 years, see typical reference chart and plan ahead for most efficient unit read 1. Consider options read 2 Consider solar assisted read 3 Consider self-cleaning tanks. Dept of Energy efficiency information read 4  Consider heat-pump water heater read 5 Avoid hype: read side-by-side test for tankless read 6.

✔ 9. For electric water heater only: Set water heater on insulated surface to prevent heat loss through bottom of tank. For example, build a 2x4 frame filled with insulation and covered with 3/4" plywood. Note: water weighs 8.34 pounds per gallon, so 40 gallon tank filled with water weighs approx 410lbs.

✔ 10. Add heat traps to slow natural convection of heat upwards. read more

✔ 11. Replace Anode rod every 1-3 years and increase life of water heater video read1 read2

✔ 12. Reduce consumption. Turn off hot water to washing machine <> Wash dishes by hand or connect dishwasher to cold side supply when dishwasher has internal heater <> Install low-flow faucets and shower heads <> Fix leaks <> Don't run water continually when brushing teeth <> Don't turn on hot side when using cold water <> read 1 read 2

✔ 13. Staging tank located in naturally warm location can preheat water before it flows into cold water side of water heater. Staging tank can be 20-60 gallon electric water heater that is not connected to electricity. see more

✔ 16. People with water well > turn down pressure on water well > save both hot and cold water, save electricity, and well equipment lasts longer.

✔ 17. Thermal expansion tank is safety device put on incoming cold water line to stop excessive expansion of pipes and tank caused when thermostat is set high. Read 1 2 3 4 Not normally installed with residential heaters. Expansion tank reduces risk of catastrophic water heater rupture leading to water damage and could prolong life of appliance. Expansion tank usually required with solar and solar-assisted systems.

✔ 18. Solar water heat is efficient use of solar energy. 
<>Hawaii requires all new homes to have solar water heaters. California offers incentives for solar installation read1. Michigan offers rebate read2. Congressional bill aims for 200,000 rooftop solar water heaters read3
<>Planning needed to make solar into net money & energy saver. See long list of DIY solar water heat ideas.  PS: this summer in Texas I am setting up solar experiment to track stored water temperature at high-consumption times like 8PM and 6AM.

✔ 19. Geothermal ideas 1 2 3 4 5 6 7

How much does it cost to run your electric water heater? For example a 50-80 Gallon size 5500 Watt water heater turned on 3 hours a day 3 hours is approximate daily run-time for a water heater [depending on usage and temperature of incoming water] 5500 Watts x 3 hours = 16,500 watt-hours or 16.5 Kwh per day For a full 30-day month <=> 30 days x 16.5 Kwh per day = 495 Kwh per month for water heater electricity Calculate cost <=> 495 Kwh x $.10 per Kwh = $49.50 + tax A water heater can add up <> solution: reduce consumption & install a timer Read about Volts-Amp-Watts for your water heater