Does Hot Water Affect Your Dallas Electric Bill?  

by | Mar 12, 2020 | Energy Efficiency, Industry News, ONCOR, Smart Home, Texas Electricity, Texas Electricity Comparisons, Texas Electricity News, Trends

Tank water heaters are the second biggest user of electricity in your Dallas home. Learn about improving your home's energy efficiency and saving money.

Tank water heaters are the second biggest user of electricity in your Dallas home. But there’s a lot you can do to reduce their thirst for energy.

How Much Does It Cost to Heat a 50-gallon Water Heater?

Water heating accounts for roughly 18% of your annual energy use. That makes it the second-biggest energy expense in your home (heating and cooling is the first). If you’re looking at getting the cheapest electricity rates in Texas, then you need a better understanding of how much impact your water heater has on your energy rates. Once you know that, you can figure out how to make water heating more energy efficient in your home. 

Is Your Old Water Heater Causing a High Electric Bill?

Most tank-style water heaters are between 40 and 60 gallons in size. And your water heater uses electricity continuously, keeping your water hot throughout the day. That adds up over the year. A 4000-watt water heater that runs for 3 hours a day with an energy rate of 12 cents per kWh will cost $526 a year to heat water in your home.

How to Reduce Your Hot Water Heater Electric Bill

Luckily, there are plenty of ways to keep your hot water heater from driving up your monthly energy bills. Most require a few small purchases and a little DYI know-how. But the time and money you save can add up to HUGE savings on your electric bills.

Wash Clothes in Cold Water

Hot water is rarely necessary for washing clothes unless your laundry is extremely dirty. Make sure you set your water temperature to cold for most of your loads. And if your washer has an energy saver mode, use that setting often to keep your monthly Texas electricity bill low.

Lower Your Water Heater’s Temperature

Keep your water heater at 120°F. You can save 3% – 5% on your water heating costs for every 10ºF reduction in temperature.

Install a Hot Water Heater Jacket

Insulating your hot water heater is a great way to improve its energy efficiency. You can easily check whether or not your hot water heater needs to be insulated by touching it.  If you feel any heat, then you should install a hot water heater jacket. This can reduce standby heat loss anywhere from 25%-45%. 

Newer tanks are already insulated. But for older tanks, you should check the insulation level first. It should have an R-value of at least 24. If it lacks sufficient insulation, you’ll need to insulate it with a pre-cut jacket or hot water heater blanket. You can find these at your local department store. And installation is a simple DYI project. Once installed, you can save anywhere from 7% – 16% in water heating costs.

Fix Leaks

A dripping faucet can cost you HUGE savings on your monthly energy bill in Dallas. To give you an idea of how much water you’re wasting from a dripping faucet, use this leak calculator. Most leaky faucets are an easy fix. All you need to do is replace the o-ring.

For more complex leaks, follow this guide to check your sinks, toilets, and pipes. Patching up leaks will keep hot water from leaking out, saving you money in the long run. You’ll also cut down on water waste as well.

Low Flow Fixtures

Low-Flow fixtures replace standard plumbing fixtures (faucets, urinals, showerheads, etc.) and use significantly less water than standard fixures. A standard showerhead uses 2.5 gallons a minute while a low-flow fixture uses 2 gallons a minute, saving you 20%. Over time, that will help you reduce your monthly Dallas electricity bill

Buy a New EnergyStar Water Heater

Most water heaters last between 12 – 15 years. Tankless water heaters can go for 20 years. While many energy-saving tactics can help you lower your energy rates in Texas, at some point, you’ll need to replace your water heater. And older hot water heaters are often less energy efficient. If your water heater is old, consider replacing it.

You’ll see the most energy efficiency in a tankless water heater. They use 27% – 50% less energy than standard tank water heaters. That’s because they only heat water when it’s needed.

EnergyStar water heaters are designed to be energy efficient. A new 40-gallon electric water heater will only cost $419 in energy per year. (That’s at an estimate of 12 cents per kWh for 3493 kWh of use all year.) And you can save even more with rebate incentives.

Switch Electricity Providers and Get HUGE Monthly Savings!

Reducing waste from your water heater isn’t the only way to get the cheapest electricity rates in Dallas. As a Texas resident, you have the power to choose your energy provider. That means you can shop, compare, and get huge savings by switching to a new electricity provider in Dallas.  

But getting the cheapest energy rates out there isn’t always easy. There are a lot of electric plans to choose from. So, how do you know which one is the best plan for your home? After all, the last thing you want to do is switch to a new energy provider and end up paying MORE each month. 

To make sure you get the cheapest rates, visit You’ll get all the information you need to find the perfect plan for your Texas home. 

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