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How to Cut Your Electric Bill Using a Tankless Water Heater

Luis Evans by Luis Evans
May 18, 2020
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saving electricity from tankless water heater
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Are you concerned about the electricity bills that you have to pay at the end of each month?

Well, if you are like most other people or me, you will be concerned. Cutting the bills associated with water heating can be one of the biggest savings that you ever make as far as electricity bills are concerned.

One of the ways to do that is to replace your conventional water heating system. If the bills do not faze you, then you will be concerned about convenience or save our planet by using lesser energy.

So what exactly is this tankless water heating system that has got so much to offer?

Table of Contents

    • All about the Tankless Hot Water System
  • How to Cut Your Electric Bill Using a Tankless Water Heater
    • How Exactly Does the Tankless Water Heater Save You Money?
    • How Do These Differences Translate to Lower Electricity Bills for you?
    • Other ways to cut the bills even further

All about the Tankless Hot Water System

How to Cut Your Electric Bill Using a Tankless Water Heater

This is a water heating system that heats up the water as you need it hence the name ‘on-demand’ or ‘instant water heater.’ An electric element or gas burner heats up the water as it passes through it depending on whether you have an electric or gas heating system.

Since the water heats as it passes through the system, you do not need to have storage tanks for the heated water. All you need to do is to turn on your tap or shower. It can heat up about 7.6-15.2 liters of water per minute.

This system, as with all other electric tankless water heating systems, is 100% efficient at converting electrical energy to heat energy. Various studies have shown that the instant water heating system saves you about 20-30% of electricity bills each month.

How to Cut Your Electric Bill Using a Tankless Water Heater

How Exactly Does the Tankless Water Heater Save You Money?

To answer this question, we will have to compare this heating system with the most commonly used system, the tank heating system. It is very probable that you are currently using a tank system in your household.

This is the system where you have to switch on the water heater switch then wait for the water to heat up. The hot water will then be stored in a cylinder which you will be drawing from as you need the water.

The difference between how these two systems operate is what makes all the difference in your electricity bill. Let me point out these differences for you.

  • The tankless system is instant while the tank system takes some time to heat up.
  • There is storage of water in the tank system while water is not stored in the tankless system.
  • The heating element is in the pipes in the tankless system while it is in the tank in the conventional tank system.

How Do These Differences Translate to Lower Electricity Bills for you?

The main cost saving will have to come from the fact that there is no storage with the on-demand system. If I can juggle up your memory a little bit, you must have learned in science that heat transfer must occur when two bodies are not at the same temperature.

This also applies to the heated water that is stored in the cylinder, and its surroundings. Once the hot water is stored in the cylinder, it will start losing heat to its cooler surroundings.

By surroundings, I mean the body of the insulated cylinder, the pipework and even the air that is around the cylinder. I am sure that you have noticed that the air around the storage cylinder often feels warmer.

The loss of heat sometimes goes on until the hot water that is stored in the cylinder cools down. This heat that is lost to the surroundings is not useful to you yet you have to pay for it since your electricity was used for heating up the water.

The fact that the heating element is in the tank is also a cost difference. If you leave the switch on for the tank system, it will try to deal with the standby heat loss. What happens is that each time the temperature goes

This will continue for as long as the switch is on and the heat loss continues. You do not want to imagine what would happen if you forget to turn off the heater and go away for a few days.

On the other hand, this is not possible with the tankless system since it only heats up the water that is passing through it. That means that your faucet or shower must be on for the heating to take place.

You will agree with me that it is easier to forget to switch off a switch than to turn off a shower or a faucet. Therefore, you do not run the risk of unintentionally higher bills with the tankless system.

Other ways to cut the bills even further

Once you have decided to replace your tank system with the tankless one, you can employ even more methods to reduce the bills even further. You can do this by:

  • Installing fixtures that have low flow rates such as aerated faucets and laminar showerheads.
  • Fixing Leaks
  • Using appliances that are energy efficient.
  • Invest in installing heat traps on your water heater tank
  • Insulate the first 3-6 feet of your cold and hot water pipes connected to the water heater
  • Insulate the hot-water storage tank
  • For limiting consumption during peak hours, install a timer on your water heater
  • Save hot water by washing laundry loads with cold water

There you have it, folks. You do not have to pay high electricity bills anymore. All you have to do is replace your conventional hot water tank system with the tankless water heater system. Within a few months, you will see a drop of about 20-30% of the bills that you are used to paying. Make the change today and thank me later.

If you still need assistance, you can contact us anytime.

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Luis Evans
Luis Evans

Hi, This is Luis. Author at “TheHeatersGuide”. I am a graduate in Mechanical Engineering. Currently researching on heating technology. However, I have learned many home heating techniques and still learning the home heating technolgy. And I love to share my research and reviews.

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