Water heaters: Annual Operating Cost

This is an estimate. Operating cost is an estimate, computed from each model's measured annual energy use at the EIA U.S. national-average residential electricity rate (18.56 ¢/kWh, March 2026). Your actual cost depends on your local utility rate and how you use the appliance. How we compute this.

Across the 1306 ENERGY STAR certified water heaters in the dataset, the median appliance consumes approximately 1,015 kWh per year and carries an estimated annual operating cost of $188, calculated at the U.S. national-average residential electricity rate. The cost range across the field spans roughly $119 to $323 annually. These figures provide a standardized basis for comparing models rather than relying on manufacturer stickers, which may vary by region.

Operating cost represents only one component of the total ownership equation. Purchase price, tank capacity, and available features also influence the final decision. On energy efficiency grounds alone, however, a more efficient model within this category can produce meaningful savings over the appliance's operational lifetime. The actual cost of ownership depends substantially on local utility rates and individual usage patterns, which may differ significantly from the national average used in these calculations.

How we estimate operating cost

Operating cost is an estimate, computed from each model's measured annual energy use at the EIA U.S. national-average residential electricity rate (18.56 ¢/kWh, March 2026). Your actual cost depends on your local utility rate and how you use the appliance.

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