Is Your Hot Water System Saving You Money?

How Your Hot Water System Can Waste Money

Before you think about new equipment, it helps to understand where hot water systems usually fall short. Even a relatively new heater can be costing you more than it should if it’s not set up correctly.

Improper Installation and Location

Proper airflow, venting, and piping are critical to efficiency. A poorly located or improperly installed tank may run longer than necessary to keep water hot, driving up your gas or electric bill.

Sediment Buildup Inside the Tank

Over time, minerals in the water settle at the bottom of the tank. This sediment buildup forces the burner or heating elements to work harder, wasting energy and shortening the life of the heater. Regular flushing can restore performance and extend the tank’s lifespan.

Temperature Set Too High

The hotter the tank is set, the more energy it uses. Many homes have their water heaters set higher than necessary. According to the
U.S. Department of Energy,
lowering the temperature slightly can cut energy use without sacrificing comfort when done correctly.

Tank Sized Incorrectly for Your Home

If your tank is too large, it keeps more water hot than you actually use. If it’s too small, it may run constantly trying to keep up. Either situation can leave your hot water system saving you money far less effectively than it should.

Older, Inefficient Equipment

Very old tanks often lack modern insulation, controls, and energy-saving technology. Replacing an aging unit with a high-efficiency model can significantly reduce your monthly utility costs.

Saving Money with Hot Water Recirculation Systems

Re-circulating systems don’t just add comfort — they can help your hot water system save you money over time. A small recirculation pump and return line keep hot water moving through your pipes, so it’s available almost instantly at fixtures throughout the house.

Instead of running the tap for 30–60 seconds waiting for hot water to arrive, you get near-immediate hot water at the faucet or shower. This is especially helpful in multi-story homes or long plumbing runs.

While the pump uses a small amount of electricity, homeowners often save money overall through:

• Less water wasted down the drain while you “wait for it to warm up”
• Reduced strain on the water heater in certain setups
• Improved comfort, especially during cold months

For homes on a well, the water savings alone can be a big deal. Over a year, those few minutes of running water before every shower or sink use really add up.

Are Tankless Water Heaters Worth It?

Tankless water heaters provide hot water on demand instead of storing it in a tank. When you open a hot water tap, the unit turns on and heats the water as it flows through. That means your hot water system is saving you money by only using energy when you actually need hot water.

Tankless units cost more upfront, but they can deliver long-term savings and a few major benefits:

• Energy savings: No standby heat loss from a large tank of hot water.
• Unlimited hot water: Great for households with back-to-back showers or large tubs.
• Compact size: Frees up floor space in mechanical rooms or basements.

Interestingly, the homeowners who benefit most from tankless heaters are often those who don’t use a lot of hot water. Traditional tanks are always on, heating water even when no one is using it. With tankless, you’re not paying to heat unused water.

When to Have Your Hot Water System Evaluated

If you’re seeing higher-than-normal utility bills, running out of hot water, or wondering whether your hot water system is saving you money anymore, it may be time for an evaluation. A professional inspection from John Shelton Plumbing can identify whether you’d benefit most from:

• Maintenance and flushing of your existing tank
• Adjusting temperature or improving venting and piping
• Right-sizing your tank for your actual usage
• Adding a recirculation system for comfort and water savings
• Upgrading to a high-efficiency or tankless water heater

We’ll walk you through your options, explain the pros and cons, and help you choose a solution that balances upfront cost with long-term savings.