HOW CAN I LOWER HOT WATER COSTS OTHER THAN REDUCING MY HOT WATER USAGE

Hot water is a necessity in every home, but high energy bills can make you think twice about your usage. While cutting back on hot water consumption is one way to save money, it’s not the only solution. There are several practical and effective ways to lower your hot water costs without sacrificing comfort.

1. Insulate Your Water Heater for Better Efficiency

Most traditional water heaters store hot water in a tank, where heat can slowly escape—especially if the tank is located in an unheated garage, basement, or utility room. Insulating your water heater can significantly reduce standby heat loss, helping your system maintain hot water more efficiently.

How to Insulate a Water Heater:

Use a water heater insulation blanket, available at most hardware stores.
Make sure to avoid covering important components such as:
- The top and bottom of gas water heaters
- The thermostat
- The burner compartment on gas models
If you have an electric water heater, ensure you do not cover the heating element access panel.

A properly insulated water heater can reduce heat loss by 25-45% and save you up to 16% on your water heating bill, according to the U.S. Department of Energy.

2. Lower Your Water Heater Temperature to 120°F

Many manufacturers set their water heaters to 140°F by default, but lowering the temperature to 120°F can offer substantial savings.

Why Lowering the Temperature Helps:

Energy Savings: Heating water accounts for about 18% of your home’s energy use. Lowering the temperature by 20°F can reduce energy costs by 6-10%.
Prevents Scalding: Water at 140°F can cause burns in seconds, whereas 120°F is much safer for household use.
Reduces Sediment Buildup: Lower temperatures slow down the accumulation of mineral deposits, helping extend the life of your water heater.

To adjust your water heater’s temperature, find the thermostat dial on your unit. On gas water heaters, it's usually near the bottom. For electric water heaters, you may need to remove an access panel and adjust the thermostat inside.

3. Reduce Sediment Buildup by Flushing Your Water Heater

Over time, sediment and mineral deposits from your water supply settle at the bottom of your water heater tank. This buildup creates an insulating layer, forcing the unit to work harder to heat the water—leading to higher energy costs and potentially damaging your system.

How to Drain Sediment From Your Water Heater:

Turn off the power (for electric models) or set the gas valve to "pilot" (for gas models).
Attach a garden hose to the drain valve at the bottom of the tank.
Place the other end of the hose in a safe drainage area (such as a floor drain or outside).
Open the drain valve and let about a quart of water run out to remove loose sediment.
Close the drain valve and remove the hose.

Repeating this process every three months can prevent excessive buildup and improve efficiency. If you notice rusty water or excessive sediment, a full tank flush might be necessary—this is best done by a professional.

Bonus Tips for Lowering Hot Water Costs Even Further

Use a Water Heater Timer: If you have a traditional electric water heater, a timer can turn the unit off during periods of low demand, reducing standby energy loss.
Upgrade to a Tankless Water Heater: If your system is old, consider switching to a tankless water heater, which heats water only when needed and can be up to 34% more energy-efficient.
Install Heat Traps: Heat traps prevent heated water from escaping through the inlet and outlet pipes, reducing wasted energy. Many modern water heaters come with them pre-installed.
Insulate Hot Water Pipes: Wrapping exposed hot water pipes with insulation helps retain heat, reducing the time it takes for water to reach your taps.

Final Thoughts On Reducing Water Heater Costs

You don’t have to sacrifice hot water to save money on energy bills. By insulating your water heater, lowering the temperature, and flushing out sediment, you can improve efficiency, extend the lifespan of your system, and reduce energy waste—all without giving up those hot showers!

If your water heater is old or inefficient, upgrading to a more energy-efficient model might be the best way to maximize savings. Need professional advice or service? Contact Ragsdale, a local plumber in Atlanta today to discuss your options and ensure your water heater is operating at its best!