How much does it cost to run a point-of-use electric water heater?
A typical point-of-use electric water heater draws about 4000 watts. Used 1 hours a day, that works out to roughly $0.68 per day, $20.68 per month, and $248.20 per year on an average electricity rate of 17¢ per kWh. Tankless on-demand water heaters draw high power briefly but eliminate standby losses from storage tanks.
Point-of-Use Electric Water Heater running cost calculator
- Per day
- $0.68
- Per month
- $20.68
- Per year
- $248.20
- CO₂ / year
- 584 kg
Based on 1460 kWh per year. Adjust the price per kWh to match your latest electricity bill for an exact figure.
The number that matters most is your own electricity rate. Rates range from under 11¢ per kWh in some regions to over 30¢ in others, so the same point-of-use electric water heater can cost two or three times as much depending on where you live. Enter your exact rate in the calculator above to get a figure tailored to your bill.
In the kitchen the point-of-use electric water heater is typically used in short, frequent bursts rather than left on all day, so total run time matters more than peak wattage. Small changes — batching tasks, matching the appliance to the job — add up over a year of daily cooking.
At 4000 watts, the point-of-use electric water heater is a high-draw appliance — the kind that can briefly become the single biggest load in your home while it runs. On a time-of-use tariff, shifting it to off-peak hours is often the easiest way to cut its cost without using it any less.
Over a full year this point-of-use electric water heater uses about 1460 kWh of electricity and is responsible for roughly 584 kg of CO₂ emissions on an average grid. Because it runs more or less year-round, even a small reduction in daily use carries straight through to a lower annual total.
To put the draw in everyday terms, one hour of running this point-of-use electric water heater uses about as much electricity as charging a smartphone 333 times. It is a rough comparison, but it makes an abstract wattage figure easier to picture.
If this point-of-use electric water heater is one you use daily, even small efficiency gains compound. Cutting its usage or wattage by 20% would save around $49.64 every year — money that an efficient replacement can recover over its lifetime.
Frequently asked questions
- How much does it cost to run a point-of-use electric water heater per hour?
- At 4000 watts and a 17¢/kWh rate, a point-of-use electric water heater costs about $0.68 per hour to run.
- How much electricity does a point-of-use electric water heater use per month?
- Running 1 hours a day, a point-of-use electric water heater uses roughly 121.7 kWh per month, costing about $20.68.
- How many kWh does a point-of-use electric water heater use per year?
- Used 1 hours a day for 365 days a year, a point-of-use electric water heater consumes about 1460 kWh annually — that is the figure your electricity rate is multiplied by to get the $248.20 yearly cost.
- Is a point-of-use electric water heater expensive to run?
- Yes — at around $248.20 per year, a point-of-use electric water heater is one of the more costly appliances to run, so efficiency upgrades pay off quickly.
- How much CO₂ does a point-of-use electric water heater produce?
- On an average grid, a point-of-use electric water heater used this much is responsible for roughly 584 kg of CO₂ per year. The exact figure depends on how clean your local electricity supply is.
- How can I reduce my point-of-use electric water heater running costs?
- Use it during off-peak hours if your utility offers time-of-use pricing, reduce daily run time, and consider an ENERGY STAR rated point-of-use electric water heater, which uses less power for the same job.