How To Calculate Energy Savings With A Water Heater Upgrade

If you’re considering upgrading your water heater, it’s important to understand the potential energy savings that come along with it. A more efficient water heater can result in lower energy bills and a more environmentally friendly household. Here’s what you need to know about calculating the energy savings from a water heater upgrade.

Start With Understanding Efficiency Ratings

When shopping for a new water heater, efficiency ratings are one of the most important things to consider. The higher the efficiency rating, the less energy the water heater will use to heat your water. The most common efficiency ratings you’ll see are:

  • Energy Factor (EF): This measures how efficiently the water heater converts energy into hot water. The higher the EF, the more efficient the water heater.

  • Uniform Energy Factor (UEF): This rating is similar to EF, but takes into account additional factors like standby losses (when the water heater loses heat while not in use). UEF is the more comprehensive rating of the two.

Calculate Your Current Water Heater’s Energy Usage

Before you can determine the potential energy savings of a new water heater, you need to understand how much energy your current water heater uses. Check your utility bill or contact your utility company to find out how many kilowatt-hours (kWh) of electricity or therms of natural gas you use each month for water heating.

For example, let’s say you use an electric water heater that consumes 500 kWh of electricity each month for water heating. Multiply that by the cost per kWh listed on your utility bill to find out how much you’re spending on hot water each month.

Estimate Your New Water Heater’s Energy Usage

Using the efficiency rating of the new water heater you’re considering, you can estimate how much energy it will use compared to your current water heater. Simply multiply your current monthly energy usage by your current water heater’s efficiency rating, then divide that number by the efficiency rating of the new water heater you’re considering.

For example, let’s say you’re considering a new electric water heater with an EF of 0.95. Multiply your current monthly energy usage of 500 kWh by your current water heater’s EF of 0.85, then divide that number by the new water heater’s EF of 0.95.

500 kWh x 0.85 / 0.95 = 446 kWh

So, if you switch to the new electric water heater, you can expect to use around 446 kWh of electricity each month for hot water.

Calculate Your Savings

Now that you have an estimate of your new water heater’s energy usage, you can calculate your potential savings. Subtract the estimated energy usage of the new water heater from your current monthly energy usage to find your monthly energy savings. Multiply that number by the cost per kilowatt-hour or therm to get your monthly cost savings.

For example, let’s say electricity costs $0.15 per kWh.

500 kWh – 446 kWh = 54 kWh saved each month

54 kWh x $0.15 = $8.10 saved each month

Over the course of a year, that’s $97.20 in savings. Keep in mind that this estimation doesn’t take into account any installation or maintenance costs, but it’s a good starting point for evaluating the cost-effectiveness of a water heater upgrade.

Consider Other Factors

While energy savings should be a primary consideration when upgrading your water heater, there are other factors that should play a role in your decision. The size and capacity of the water heater, as well as its upfront and maintenance costs, should also be taken into account. Be sure to do your research and carefully evaluate all aspects of a new water heater before making your purchase.

Conclusion

By understanding efficiency ratings and calculating your potential energy savings, you can make an informed decision when upgrading your water heater. While the process may seem daunting at first, a little research goes a long way in saving you money and reducing your home’s environmental impact.

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