We all love a long, hot shower, but did you know that water heating accounts for nearly 20% of your home’s total energy use? It’s the second-largest energy expense in most households, right behind heating and cooling. That means every time you turn on the tap, wash a load of laundry, or run the dishwasher, you’re paying not just for the water itself, but for the energy it takes to heat it.
The good news is that you don’t have to take cold showers to save money. With a few simple adjustments—most of which cost nothing—you can significantly cut your water heating bill while maintaining comfort. From simple habit changes to smart upgrades, here’s how to keep your water hot and your bills low.
1. Lower Your Water Heater Temperature
Most water heaters come from the factory set to 140°F. Not only is this temperature unnecessarily high for most household tasks, but it also poses a scalding risk. By lowering your water heater’s temperature to 120°F, you can reduce standby heat losses and save 6–10% on water heating costs.
Think about it: your heater runs continuously to maintain that tank of water at a high temperature, even when you’re sleeping or at work. Reducing the target temperature by just 20°F makes a noticeable difference on your monthly bill—and your shower will still be plenty hot.
2. Shave a Minute Off Your Shower
The average American spends about eight minutes in the shower every day. It might not feel like much, but those minutes add up. Reducing your average shower time by just one minute can cut your shower water use by roughly 13%.
Over the course of a year, that’s hundreds of gallons of heated water you don’t have to pay for. If everyone in a four-person household shaves a minute off their daily routine, the savings multiply fast.
3. Install Efficient Showerheads
Showering accounts for nearly 40% of your home's hot water use. If your showerhead is older, it’s likely pushing out far more water than necessary—literally pouring money down the drain.
Switching to a WaterSense-labeled showerhead is one of the most cost-effective upgrades you can make. These efficient models reduce hot water consumption significantly without sacrificing water pressure. You get the same refreshing shower experience while using less water and less energy to heat it.
4. Wash Laundry with Cold Water
Here’s a staggering stat: about 90% of the energy used by your washing machine goes solely toward heating the water. Only 10% goes to actually running the motor!
Unless you’re dealing with oily stains or sanitizing sick-bed linens, cold water cleans clothes just as effectively as warm or hot water. Modern detergents are specifically formulated to work in cold water. By making cold cycles your default setting, you eliminate almost all the energy cost of doing laundry.
5. Stop Leaks with Faucet Aerators
Older kitchen and bathroom faucets can waste a surprising amount of water—up to the equivalent of 45 showers per year! Installing low-flow aerators on your faucets is an easy, inexpensive DIY project that can reduce hot water usage by up to 30%.
Aerators mix air into the water stream, maintaining strong pressure while using less water volume. It’s a small hardware change with a big financial impact.
6. Insulate Your Hot Water Pipes
Have you ever turned on the shower and stood there waiting for the water to get hot? That delay is caused by heat loss as water travels from your tank to the faucet. In typical homes, up to 9% of water heating energy is lost in distribution.
By insulating your hot water pipes (using inexpensive foam sleeves available at any hardware store), you keep the heat inside the pipes where it belongs. As a bonus, hot water arrives at your faucet faster, reducing water waste and frustration.
7. Consider a Drain-Water Heat Recovery System
When you shower, warm water runs over you and immediately goes down the drain. The energy you paid to heat that water is literally washing away.
A drain-water heat recovery (DWHR) system captures that outgoing heat and uses it to pre-heat the cold water coming into your water heater. This means your heater doesn’t have to work as hard to bring water up to temperature. While this is a bigger project—best suited for when you’re remodeling or building—it’s a smart way to recycle energy that would otherwise be lost forever.
Bonus Tip: Talk About It!
Talk with your household about your energy savings plan.
You can install all the aerators and low-flow showerheads in the world, but if your teenager takes 20-minute showers or the laundry keeps getting run on "Hot," your savings will stall. Talk with your household members—and even neighbors!—about how they approach saving energy. You might discover hidden costs, brainstorm new solutions, or simply learn from each other’s good habits. Making efficiency a team effort ensures everyone is pulling in the same direction.
The Bottom Line
Water heating is a major expense, but it’s also one of the easiest to control. Start small: turn down the water heater thermostat, switch your laundry to cold, and install a couple of aerators. You’ll see the difference in your next utility bill—and you won’t miss those extra degrees one bit.
Have a favorite way to save on hot water? Share your tips in the comments!
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