How Much Does It Cost to Run a Electric Water Heater?
A typical Electric Water Heater uses 4500W and runs about 3 hours/day. At the national average rate of 16.72¢/kWh, that costs approximately $67.72/month.
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What Affects the Cost of Running a Electric Water Heater
Water Heating Is Typically the Second-Largest Electricity Expense
After HVAC, the electric water heater is usually the biggest electricity consumer in the home, accounting for 15-20% of the total electric bill. A 4,500W tank heater running 3 hours/day uses about 400 kWh/month ($67 at the national average rate). Standby heat loss (the tank cooling and reheating even when no hot water is used) accounts for 20-30% of this cost.
Temperature Setting and Tank Insulation Are the Easiest Wins
Lowering the thermostat from 140F to 120F saves 5-10% on water heating costs ($3-7/month) and reduces scalding risk. Adding an insulation blanket to the tank ($20-30 at a hardware store) reduces standby heat loss by 25-45%, saving $2-5/month. These two changes combined save $60-$140/year with minimal effort.
Heat Pump Water Heaters Use 60% Less Electricity
A heat pump water heater extracts heat from surrounding air rather than generating it with a resistive element. This makes it 2-3x more efficient than a standard electric tank heater. Monthly cost drops from $50-$70 to $20-$30. The upfront cost ($1,500-$2,500 installed) pays back in 2-4 years through electricity savings. Federal tax credits and utility rebates can reduce the net cost further.
Electric Water Heater vs. Alternatives
How the monthly cost of a Electric Water Heater compares to other options:
| Alternative | Est. Monthly Cost | Notes |
|---|---|---|
| Electric Water Heater (this page) | $67.72 | At national average rate, 3hrs/day |
| Gas water heater (tank) | ~$25-45 | Usually cheaper than electric resistance in markets with low gas prices. |
| Heat pump water heater | ~$20-30 | 60% less electricity than standard electric. Best efficiency for electric homes. |
| Tankless electric | ~$35-55 | No standby loss, but very high peak wattage (27,000W). May need electrical panel upgrade. |
| Solar water heater + electric backup | ~$10-25 | Sun provides 60-80% of heating. Electric backup for cloudy days. |
Electric Water Heater Cost by State
What a Electric Water Heater costs to run at 4500W for 3 hours/day in every state:
| State | Rate | Monthly Cost | Yearly Cost |
|---|---|---|---|
| Alabama | 14.82¢ | $60.02 | $720.25 |
| Alaska | 25.34¢ | $102.63 | $1231.52 |
| Arizona | 13.81¢ | $55.93 | $671.17 |
| Arkansas | 12.63¢ | $51.15 | $613.82 |
| California | 31.41¢ | $127.21 | $1526.53 |
| Colorado | 15.24¢ | $61.72 | $740.66 |
| Connecticut | 29.35¢ | $118.87 | $1426.41 |
| Delaware | 15.24¢ | $61.72 | $740.66 |
| District of Columbia | 15.87¢ | $64.27 | $771.28 |
| Florida | 15.63¢ | $63.3 | $759.62 |
| Georgia | 14.12¢ | $57.19 | $686.23 |
| Hawaii | 43.21¢ | $175 | $2100.01 |
| Idaho | 10.87¢ | $44.02 | $528.28 |
| Illinois | 16.37¢ | $66.3 | $795.58 |
| Indiana | 15.12¢ | $61.24 | $734.83 |
| Iowa | 14.23¢ | $57.63 | $691.58 |
| Kansas | 14.98¢ | $60.67 | $728.03 |
| Kentucky | 12.87¢ | $52.12 | $625.48 |
| Louisiana | 11.98¢ | $48.52 | $582.23 |
| Maine | 22.87¢ | $92.62 | $1111.48 |
| Maryland | 16.12¢ | $65.29 | $783.43 |
| Massachusetts | 28.76¢ | $116.48 | $1397.74 |
| Michigan | 18.76¢ | $75.98 | $911.74 |
| Minnesota | 15.34¢ | $62.13 | $745.52 |
| Mississippi | 13.76¢ | $55.73 | $668.74 |
| Missouri | 13.12¢ | $53.14 | $637.63 |
| Montana | 12.45¢ | $50.42 | $605.07 |
| Nebraska | 11.98¢ | $48.52 | $582.23 |
| Nevada | 15.03¢ | $60.87 | $730.46 |
| New Hampshire | 25.34¢ | $102.63 | $1231.52 |
| New Jersey | 18.76¢ | $75.98 | $911.74 |
| New Mexico | 14.87¢ | $60.22 | $722.68 |
| New York | 22.87¢ | $92.62 | $1111.48 |
| North Carolina | 13.98¢ | $56.62 | $679.43 |
| North Dakota | 11.87¢ | $48.07 | $576.88 |
| Ohio | 15.34¢ | $62.13 | $745.52 |
| Oklahoma | 11.98¢ | $48.52 | $582.23 |
| Oregon | 13.12¢ | $53.14 | $637.63 |
| Pennsylvania | 16.87¢ | $68.32 | $819.88 |
| Rhode Island | 27.12¢ | $109.84 | $1318.03 |
| South Carolina | 14.98¢ | $60.67 | $728.03 |
| South Dakota | 13.76¢ | $55.73 | $668.74 |
| Tennessee | 12.87¢ | $52.12 | $625.48 |
| Texas | 14.98¢ | $60.67 | $728.03 |
| Utah | 10.87¢ | $44.02 | $528.28 |
| Vermont | 21.34¢ | $86.43 | $1037.12 |
| Virginia | 15.34¢ | $62.13 | $745.52 |
| Washington | 10.76¢ | $43.58 | $522.94 |
| West Virginia | 13.12¢ | $53.14 | $637.63 |
| Wisconsin | 16.98¢ | $68.77 | $825.23 |
| Wyoming | 11.23¢ | $45.48 | $545.78 |
Energy-Saving Tips for Your Electric Water Heater
- Set the thermostat to 120F; higher temperatures waste energy and risk scalding
- Insulate the tank and hot water pipes to reduce standby heat loss
- A timer that turns the heater off at night can save 5-10% on water heating costs
- Consider a heat pump water heater; they use 60% less energy than standard electric
Frequently Asked Questions
A standard 4,500W electric tank water heater costs $50-70/month at the national average rate for a family of 3-4. Single-person households may pay $25-40/month. In high-rate states, costs can exceed $100/month. Water heating is typically the second-largest electricity expense after HVAC.
For standard tank heaters, leaving it on is usually more efficient because reheating a full tank from cold uses more total energy than maintaining temperature. However, a timer that turns the heater off during the 6-8 hours when no hot water is needed (typically late night to early morning) can save 5-10%. For vacations of 3+ days, turning off the water heater saves meaningful electricity.
If your electric water heater costs $50+/month, a heat pump model will save $25-40/month ($300-480/year). At an installed cost of $1,500-2,500, payback is 3-6 years. Federal tax credits (up to 30% of cost) and utility rebates can shorten this to 2-3 years. Heat pump water heaters work best in spaces that stay above 40F year-round (they extract heat from ambient air). They also dehumidify the space, which is a bonus in basements.
Related Appliances
Electricity cost estimates are based on typical wattage and average residential rates from the U.S. Energy Information Administration. Your actual costs may vary based on your appliance's specific wattage, usage patterns, and your utility's rate structure. See our full disclaimer.