Natural Gas Water Heaters

Water heating is the second largest energy expense in your home. It typically accounts for about 18% of your utility bill.

There are four ways to cut your water heating bills:

• Use less hot water.
• Turn down the thermostat on your water heater.
• Insulate your water heater.
• Buy a new, more efficient model.

Tips for reducing your water heating bills

• Install aerating, low-flow faucets and showerheads.
• Repair leaky faucets promptly; a leaky faucet wastes gallons of water in a short period of time.
• Wash your clothes with cold water
• Set the thermostat on your water heater to 120°F to get comfortable hot water for most uses.
• Insulate your natural gas or oil hot-water storage tank but be careful not to cover the water heater's top, bottom, thermostat, or burner compartment. Follow the manufacturer's recommendations; when in doubt, get professional help.
• Insulate the first 6 feet of the hot and cold water pipes connected to the water heater.
• If you are in the market for a new dishwasher or clothes washer, consider buying an efficient, water-saving ENERGY STAR® model to reduce hot water use.
• Drain a quart of water from your water tank every 3 months to remove sediment that impedes heat transfer and lowers the efficiency of your heater. Follow the manufacturer's directions.

Long-Term Savings Tips

• Buy a new energy-efficient water heater. While it may cost more initially than a standard water heater, the energy savings will continue during the lifetime of the appliance. Look for the ENERGY STAR® and EnergyGuide labels. You can find the ENERGY STAR label on efficient water heaters in the following categories: high efficiency gas non-condensing, gas condensing, electric heat pump, gas tankless, and solar.
• Consider natural gas on-demand or tankless water heaters, which heat water directly without using a storage tank. Researchers have found energy savings can be up to 30% compared with a standard natural gas storage tank water heater.

Electric Resistance Storage Water Heater

Natural Gas Storage Water Heater

0.90 EF
16.5 MMBtu/yr
$387

0.59 EF
24.4 MMBtu/yr
$256

Federal Minimum Efficiency Rating (EF)
Energy Consumption (MMBtu/yr)
Energy Cost/yr

Although most water heaters last 10-15 years, it's best to start shopping now for a new one if yours is more than 7 years old. Doing some research before your heater fails will enable you to select one that most appropriately meets your needs.