Cost of Operation

A residential water heater contributes to as much as 30 percent of a household's energy cost - second only to the expense of a home's heating and cooling system. Selecting the right water heater - one that is efficient and the right capacity - can dramatically impact your monthly energy bill.

Other ways to lower your energy bill include:

  • Always wash full loads of laundry, using cold water whenever possible.
  • Always run full loads in the dishwasher.

All water heaters carry standard Energy Guide labels. Use this government-regulated information to compare the performance and operating costs of different models.


What It Means

Energy Guide

Model: The model number of the unit.

First Hour Rating: Amount of usable, stored water available combined with the amount of water the unit can heat in one hour. This rating demonstrates the unit's capacity during peak usage.

Energy Use Per Year: Estimated measure of the energy required to operate the unit for one year, measured in Therms, Gallons or Kilowatt Hours, depending upon fuel type. The Energy Guide lets you compare an individual model's performance against an acceptable range of other models. More efficient units will require less energy.

Estimated Annual Operating Cost: Dollar amount required to operate the unit for one year. More efficient units will cost less to operate.

National Average Cost per Therm, Gallon or KWH: A standardized dollar figure representing the cost of one Therm, Gallon or Kilowatt Hour of power. A unit's actual cost will vary, depending on local utility rates and usage.


Download the Energy Guides specific to each model in the Owner Center.