Will a New Hot Water Heater Save Electricity?

Hot water heating probably represents around one-seventh to one-fifth of your home energy expenses. Consequently, a more efficient new hot water heater could have a substantial effect on your monthly electric bill. Homeowners with older tank-based equipment may find that any new unit will help conserve energy. On the other hand, perhaps you need to invest in a tankless or hybrid model to see considerable savings.

Will a New Hot Water Heater Save Electricity?

Tank Heaters

The efficiency of conventional tank-based systems has increased in recent years. However, the improvements have been much more significant for large units that hold more than 54 gallons. Some models use heat pump technology to save electricity. Most heaters include more insulation than their predecessors, so heat cannot escape as quickly and they don’t need to run as frequently.


While a new storage tank model will produce modest savings in many homes, hybrid and on-demand tankless systems often conserve more power. Tankless units boost efficiency by about 12 to 38 percent, and hybrid water heaters reduce electricity consumption by around three-fifths. However, Consumer Reports warns not to put this equipment in a room that falls below 40 or exceeds 90 degrees Fahrenheit.


When you want to compare different models, look at their uniform energy factor ratings. You can also check to see if a water heater has been certified by Energy Star. Remember not to overlook other factors, such as noise levels, measurements and maximum heating capacity. An on-demand model may heat significantly more or less gallons per minute depending on the temperature of your local water supply.

If your electric water heater needs replacement and you’re looking for an accomplished, well-qualified plumber, you’ve come to the right place. We can install a long-lasting, efficient unit in your home while taking steps to increase safety and convenience. Please contact us today to request a quote or set up a service call.

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