Your water heater is pivotal to your home's comfort. Still, it accounts for a significant portion of your energy consumption. Water heating makes up about 20% of your home’s total energy use, making it one of the most expensive appliances. If your system isn’t running efficiently, you could be wasting energy—and money—every month.
The good news? By upgrading to an energy-efficient model or implementing simple efficiency strategies, you can cut costs, reduce energy waste, and extend the life of your water heater. From understanding efficiency ratings to choosing the right type of unit for your needs, our guide will walk you through everything you need to know about maximizing performance and saving money.
At IRBIS Air, Plumbing & Electrical, we perform water heater installation, maintenance, and repairs throughout San Jose. Whether you need a new system or professional advice on optimizing your current unit, we can help. Call (669) 322-8182 or message us online to schedule a consultation!
What Water Heater UEF Ratings Mean for Your Energy Savings
Not all water heaters are created equal, and their efficiency can directly impact your energy bills. The U.S. Department of Energy uses the Uniform Energy Factor (UEF) rating system to help consumers make informed decisions about water heaters. The UEF is an industry-standard metric to measure how effectively a water heater converts energy into hot water. The higher the UEF rating, the more efficient the unit, meaning lower energy waste and reduced operating costs.
UEF ratings are determined based on how much hot water a system can deliver in the first hour of operation, considering energy input and losses during the heating process. For example, a water heater with a 0.93 UEF rating means that only 7% of the energy used in the heating process is wasted, making it a highly efficient option.
However, while a higher UEF typically translates to better energy efficiency, it doesn’t always guarantee the lowest annual operating costs. Other key factors—such as the water heater’s size, fuel type (gas vs. electric), and first-hour rating—must also be considered when selecting an ideal unit for your home.
A professional can assist if you’re unsure which water heater will provide the best balance of efficiency and cost savings for your household. They can give insightful recommendations to help you get a system that meets your needs while maximizing efficiency.
Comparing Different Water Heater Types for Efficiency
The right water heater can affect your home’s energy efficiency and utility costs. With several types available offering distinct advantages and drawbacks, understanding how they operate and impact your energy use is crucial.
Traditional Tank Water Heaters: Reliable but Prone to Energy Waste
Conventional storage water heaters heat and store a set amount of water, ensuring hot water is available when needed.
However, this convenience comes with standby heat loss—energy wasted as the water gradually cools and the system reheats it, even when no one is using hot water. Also, if your household has increased demand—such as multiple people showering or running hot water appliances simultaneously—you may run out of hot water, requiring the heater to work harder to keep up.
Tankless (On-Demand) Water Heaters: Efficiency Without Limits
Unlike traditional models, tankless water heaters heat water only when needed, eliminating standby heat loss and improving overall efficiency. According to the U.S. Department of Energy, these units can be 24%–34% more energy efficient than traditional storage water heaters for households using 41 gallons or less of hot water daily.
While tankless models require a higher upfront investment, they reduce long-term operating costs and provide an uninterrupted hot water supply—as long as they are appropriately sized for your home’s needs.
However, gas-fired tankless models with a standing pilot light can still waste energy. Hence, choosing a model with an automatic ignition system is important.
Heat Pump Water Heaters: Superior Efficiency for Long-Term Savings
Heat pump water heaters (hybrid water heaters) are an excellent choice for homeowners looking for maximum energy efficiency. Instead of generating heat directly, they extract warmth from the surrounding air to heat water, using significantly less electricity than traditional models.
Though they require a larger upfront investment, their long-term energy savings can offset the initial cost, making them a smart choice for homeowners focused on lowering their utility bills.
Solar Water Heaters: Harnessing Renewable Energy for Cost-Effective Hot Water
Solar water heaters provide an eco-friendly and cost-efficient solution for those committed to reducing their carbon footprint. These systems use solar panels to collect energy from the sun, significantly cutting utility costs.
Although they have higher installation costs, government incentives and rebates can make them more affordable. Additionally, they work best in sunny climates like San Jose, making them an attractive option for homeowners looking to capitalize on renewable energy.
Final Considerations: Finding an Ideal Fit for Your Home
While each type of water heater offers unique benefits, energy costs vary from model to model. Carefully evaluate factors such as pilot lights, unit size, and hot water demand before deciding. Consulting with a professional can help you choose an efficient and cost-effective system for your household.
Tips to Improve Water Heater Efficiency and Save Energy
A well-maintained and energy-efficient water heater doesn’t just provide reliable hot water—it also reduces energy waste and saves you money. Whether you’re looking to optimize your current system or considering an upgrade, these strategies can help you get the most out of your water heater while keeping your utility bills in check.
Schedule Regular Maintenance for Peak Performance
Routine maintenance is essential for extending the lifespan and efficiency of your water heater. Flushing the tank removes sediment buildup that can reduce efficiency and cause overheating.
Additionally, checking and replacing the anode rod—a sacrificial metal rod that prevents corrosion—can prolong the life of your unit.
If you have a tankless water heater, periodic descaling is necessary to prevent mineral buildup from restricting water flow.
Reduce Heat Loss with a Water Heater Blanket
Traditional storage water heaters lose heat as hot water sits in the tank, forcing the system to reheat it throughout the day. A water heater blanket—a specially designed insulation wrap—helps reduce this heat loss, improving efficiency and reducing energy consumption. If your water heater is in an unconditioned space, like a garage or basement, adding insulation can lead to energy savings.
Lower the Thermostat to Reduce Energy Consumption
Many water heaters come preset to 140°F, but lowering the thermostat to 120°F is often sufficient for household needs. This slight adjustment reduces standby heat loss, minimizes scalding risks, and lowers your energy bills—all without sacrificing comfort.
Upgrade to Energy-Efficient Fixtures and Appliances
Reducing overall hot water usage improves efficiency without compromising performance. Installing low-flow showerheads, faucet aerators, and ENERGY STAR®-rated dishwashers and washing machines decreases hot water demand, allowing your system to operate more efficiently.
Invest in a High-Efficiency Water Heater
If your current water heater is over a decade old, upgrading to a newer, more efficient model can lead to substantial long-term savings. Tankless water heaters, heat pump models, and ENERGY STAR®-certified storage water heaters use advanced technology to minimize energy waste while providing reliable hot water. Though the initial investment may be higher, the reduction in operating costs quickly offsets the expense.
Unlock Maximum Savings and Efficiency with the Right Water Heater Solutions
Choosing an energy-efficient water heater and properly maintaining it contributes to long-term comfort, reliability, and performance. Whether you’re looking to minimize energy waste, extend the lifespan of your unit, or upgrade to a more advanced system, the right decisions today can lead to savings and improved efficiency later.
IRBIS Air, Plumbing & Electrical provides San Jose water heater services tailored to your home’s needs. Contact us at (669) 322-8182 to schedule a consultation.