Grey metal full size water heater in basement of home next to a blue toolbox and open fuse box.

Energy Efficiency in Electric Water Heaters

In today’s era of increasing environmental awareness and rising energy costs, energy efficiency has become a crucial consideration for homeowners. Among the various appliances in our homes, electric water heaters play a significant role in our daily lives. By opting for energy-efficient electric water heaters, we can reduce our carbon footprint, conserve resources, and enjoy financial benefits.

There are a great many advantages of having energy-efficient electric water heaters. Among those are all the different types available in the market which allows for a greater selection for your home or business that did not exist in years past. With this choice comes many benefits to consider before purchasing your electric water heater or if it is time for an upgrade.


What is An Energy Efficient Water Heater?

Want to know exactly what makes a water heater energy efficient anyway? According to, water heaters are the second most energy-consuming appliance in the home. So knowing that means there are a couple of things to look for in efficiency for your water heater:

• EF Rating:

An EF Rating is the most important factor in determining efficiency. “EF” means the “Energy Factor” that is rated to indicate just how effective and efficient a water heater is. The way this is measured to determine what is efficient is when the amount of hot water produced by the amount of fuel or electricity, in this case, is used. The higher the rating the better and more efficient unit you have.

• Energy Star:

Many of us have seen the energy star logo on our appliances. But what does it mean exactly? When a water heater unit is Energy Star certified, it means that the United States Environmental Protection Agency (EPA) has certified the product. So know that the blue sticker you see will certify that particular unit’s efficiency.


Benefits of Energy Efficiency in Electric Water Heaters


1. Environmental Impact:

Reducing energy consumption is essential for combating climate change and preserving our planet. Energy-efficient electric water heaters consume less electricity, resulting in lower greenhouse gas emissions. By choosing an energy-efficient model, you contribute to a greener future and help conserve valuable natural resources.

2. Lower Utility Bills:

One of the most tangible benefits of energy-efficient electric water heaters is the cost savings on your utility bills. Traditional water heaters consume a significant amount of energy to heat and store large quantities of water continuously. Energy-efficient models, on the other hand, employ advanced technologies to minimize energy waste. By reducing your energy consumption, you can expect substantial savings on your monthly energy bills.

3. Long-Term Financial Savings:

While energy-efficient electric water heaters may have a higher upfront cost compared to conventional models, they provide long-term financial benefits. Over the lifespan of the appliance, the savings on energy bills can outweigh the initial investment. Moreover, many energy-efficient models come with warranties, reducing maintenance and repair costs in the long run.

4. Enhanced Performance and Reliability:

Energy-efficient electric water heaters often incorporate advanced features such as improved insulation, digital controls, and efficient heating elements. These features enhance performance, ensuring a consistent and reliable hot water supply. Additionally, they often have better insulation, which minimizes heat loss, resulting in less standby energy consumption.


Types of Electric Water Heaters

Again, there are so many more choices with types of water heaters than ever. One of the largest growing choices globally is an electric water heater. Whether it is space, efficiency, or financial savings; the electric water heater is a great choice to consider.

Conventional Storage Tank Water Heaters

Conventional storage tank water heaters are the most common type found in households. They store and heat a specific amount of water in a tank, maintaining a constant temperature until needed. While these models are affordable, they tend to have lower energy efficiency due to standby heat loss.

Tankless Water Heaters

Tankless water heaters, also known as on-demand water heaters, heat water directly as it flows through the unit. They eliminate the need for a storage tank and provide hot water on demand. Tankless models are highly energy-efficient as they only heat water when required, eliminating standby heat loss. They are ideal for homes with limited space and lower hot water demands.

Heat Pump Water Heaters

Heat pump water heaters use electricity to transfer heat from the surrounding air or ground to heat the water. This method is significantly more energy-efficient than generating heat directly. Heat pump water heaters are an excellent choice for homeowners looking to maximize energy efficiency and reduce their carbon footprint.

Solar Water Heaters

Solar water heaters utilize energy from the sun to heat water. They consist of solar collectors that capture solar energy and transfer it to a storage tank. Solar water heaters are highly sustainable and energy-efficient. While they may have higher upfront costs, they offer long-term savings and minimal operating expenses.



Investing in an energy-efficient electric water heater brings numerous benefits to your home and finances. By reducing energy consumption, you contribute to environmental preservation while enjoying lower utility bills and long-term savings.

With various types of electric water heaters available, you can choose the one that suits your needs, space, and budget. Consider the long-term advantages and make an informed decision to improve energy efficiency in your home, benefiting both your wallet and the planet.

It can be both an easy or a difficult decision when choosing an energy-efficient water heater. When considering an electric water heater, please contact Plumbing Doctor today! We would love to help you make the best choice and get you set up with a more efficient home.