Replacing *This* Forgotten Home Essential Can Save You $300 a Year (or More)

You know that turning off the lights when you’re not in the room will ultimately save you money on your monthly bills. One savings area you’re probably not thinking about? Your water heater. (We know, sexy.)

This oft-ignored essential is actually the second highest energy sucker in the home. (Heating water accounts for around 18 percent of your utility bill!) Planning to upgrade your model? Yeah, it’ll save you big time in the long run.

To get granular, HomeAdvisor expert Dan DiClerico says that replacing an old unit with a high-efficiency model can actually save you $300 a year (or more) depending on household size and how much hot water you use collectively.

How?

Because older water heaters (ten years or older) are not insulated very well. With a standard gas storage heater, for example, less than half of the energy actually reaches point of use. Translation: You have to burn twice as much fuel every time you run the dishwasher or washing machine or take a hot shower. This means higher monthly water heating bills...and a ton of unnecessary greenhouse-gas emissions.

The solution?

Upgrading to a new tankless or solar water heater, which, on average, costs around $1,500 to install. We know it’s a heavy initial hit to your savings account—but consider that it’ll pay back your investment in just a few years' time. (And the planet will thank you, too.)

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