Can a Bad Water Heater Increase Your Electric Bill?

Yes, a malfunctioning hot water heater can lead to higher electric bills due to inefficient heating, increased energy consumption, and potential leaks that cause the unit to work harder than necessary.

A malfunctioning water heater can silently drain your wallet by spiking your electricity costs. From sediment buildup to failing thermostats, even minor issues force your system to work harder—and consume more power.

Hot water heater impact on energy bills with a home setting.

How Faulty Water Heaters Waste Electricity

Electric water heaters account for 18% of home energy use according to the U.S. Department of Energy. When components fail, consumption can jump by 30% or more.

Sediment Buildup in Tanks

Mineral deposits accumulate at the tank bottom over time, creating a barrier between heating elements and water. This forces elements to:

  • Run longer cycles
  • Overheat to compensate
  • Fail prematurely

A ½” sediment layer can increase energy use by 15%. Annual flushing prevents this issue.

Failing Heating Elements

Corroded or cracked elements lose efficiency. Symptoms include:

Issue Energy Impact
Partial element failure 20-30% longer heating times
Complete failure Other element works overtime

Thermostat Malfunctions

Faulty thermostats may:

  • Not shut off at set temperature
  • Cycle erratically
  • Read temperatures incorrectly

This can cause continuous operation, wasting significant electricity.

Hot water heater problems impact electric bills significantly.

Other Costly Water Heater Issues

Insulation Breakdown

Older tanks lose up to 45% more heat through deteriorated insulation. Consider upgrading to a modern energy-efficient model if your unit is over 10 years old.

Leaking Tanks

A leaking water heater:

  1. Loses heated water
  2. Constantly refills with cold water
  3. Forces repeated heating cycles

Even small leaks can waste hundreds of gallons monthly.

Pressure Valve Problems

A stuck open pressure valve:

  • Releases hot water continuously
  • Causes temperature fluctuations
  • Triggers more heating cycles
READ MORE  Will Flushing Water Heater Help With Water Pressure?

When to Repair vs. Replace

Consider these factors:

Scenario Solution
Unit under 8 years old Repair likely cost-effective
Frequent repairs needed Replacement recommended
Energy Factor below 0.90 Upgrade to efficient model

For homes with high hot water demand, tankless or heat pump models can cut energy use by 50% or more.

Maintenance Tips to Save Energy

Annual Flushing

Removes sediment that reduces efficiency. Follow manufacturer guidelines for your model.

Temperature Adjustment

Set thermostat to 120°F (49°C) – each 10°F reduction saves 3-5% on costs.

Insulation Upgrade

Add an insulation blanket if your tank feels warm to the touch. Water heater blankets can reduce standby heat loss by 25-45%.

Leak Checks

Inspect connections, valves, and tank monthly for moisture or drips.

Element Testing

Check resistance with a multimeter annually – should read 10-16 ohms for most elements.

By addressing these issues promptly, you can maintain efficient operation and avoid unnecessary energy waste from your water heating system.

Joye
Joye

I am a mechanical engineer and love doing research on different home and outdoor heating options. When I am not working, I love spending time with my family and friends. I also enjoy blogging about my findings and helping others to find the best heating options for their needs.