Why Saving Money on Hot Water Matters

First and foremost, improving your water heater energy efficiency will save you a ton of money. But a close second? You’ll also be doing your part for the environment. More efficient water heaters have a smaller carbon footprint because they use less energy to get the job done.

Reducing your hot water usage can even help your hot water heater last longer, saving you even more on long-term replacement costs.

Lower the Temperature on Your Water Heater

Does lowering your water heater temperature save money? Yes! Turning down your water heater temperature is one of the simplest ways to save energy without affecting comfort. Most heaters come preset at 140°F, but that’s hotter than most households need and increases both energy costs and scalding risk.

How to do it: Set the thermostat on your water heater to 120°F.

• For gas heaters, you’ll likely find the dial near the bottom.
• For electric models, turn off the power at the breaker first and adjust the temperature under the access panels.

How much you’ll save: According to the U.S. Department of Energy (DOE), reducing the temperature to 120°F can save 4%-22% annually on water heating costs. But you might be wondering—does turning off the water heater entirely save more money? Typically, no, not unless you’ll be out of town for at least a few days.

Upgrade to a More Efficient or Tankless Water Heater

Older, inefficient water heaters can waste energy and struggle to meet your household’s needs. New types of water heaters, especially tankless units, have way better performance and cost savings. For example, a tankless unit only heats water when you need it, which completely eliminates standby heat loss.

Upgrades to consider:

• Tankless water heater: How do tankless water heaters save money? A tankless water heater provides on-demand hot water, so you don’t waste energy heating up water all day. And since it works instantly, you’ll never run out of hot water again.
• Smart water heater: A smart water heater is a more efficient water heater because it has sensors that monitor hot water usage and adjust the tank’s heating schedule automatically.
• Heat pump water heater: A heat pump doesn’t actually generate any heat—it pulls it from the air. Because of that, it is far more efficient than a traditional water heater.

How much you’ll save: The DOE reports that tankless hot water savings can be 24%-34% more energy-efficient than traditional storage tank heaters, depending on daily water use.

Practice Water-Saving Habits to Reduce Hot Water Use

Small changes in your daily routine can significantly lower your hot water usage without compromising comfort or hygiene. Using less hot water means less energy is needed to heat it, reducing your overall utility bill and your home’s environmental footprint.

How to do it:

• Take shorter showers (aim for 5 minutes or less).
• Install low-flow showerheads and faucet aerators.
• Only run dishwashers and washing machines with full loads.
• Fix leaky fixtures promptly.

How much you’ll save: According to the EPA, using WaterSense-labeled showerheads alone can save the average family 2,700 gallons of water and 330 kilowatt-hours of electricity per year—enough to power a home for 11 days. It’s one of the best ways to save money with water conservation!

Tips to Save Money on Your Hot Water Bill

We’ll leave you with a few final tips on how to lower your water bill:

• Use low-flow showerheads and install aerators.
• Fix any dripping taps — even small leaks lead to wasted hot water.
• Take advantage of appliance scheduling features to avoid peak energy hours.

If you’re looking for more ways to save money on your water bill, consider reaching out to a Roto-Rooter plumber. Roto-Rooter professionals can help you choose the right efficient system, whether you stick with a tank, opt for tankless, or go smart. Contact us today to start saving on your water and energy bills.