How a Smart Water Heater Can Save You Money and Energy

February 28, 2024

Is Your Water Heater Draining Your Wallet?

A smart water heater is an appliance that uses the latest technology and communication to maximize hot water efficiency. Smart water heaters have features such as personalized timetables, temperature adjustments, and home automation connections that consume less electricity and, hence, have lower utility bills compared to traditional versions.

As energy costs continue to rise, upgrading to energy-efficient appliances:

Cuts down on energy bills – Energy-efficient appliances can reduce the annual cost of home energy by a significant amount; this would represent an average saving of hundreds of dollars per annum for each family. Changing appliances is one way through which consumers can achieve an immediate reduction in their monthly bills.
Saves natural resources – Appliances account for more than twenty percent (20%) of residential energy consumption. Efficient models lower fossil fuel consumption from power plants, conserving resources and reducing environmental impact.
Benefit the energy grid – Widespread use of efficient appliances reduces strain on community energy grids, especially during times of peak seasonal demand.
Provides financial savings over time – Although energy-efficient appliances may cost more upfront, the lifetime utility bill savings often outweigh higher initial prices through faster payback.
Increases home resale value – Upgraded efficient appliances can directly increase home value by demonstrating both cost savings potential and environmental responsibility to prospective buyers.
Improves household comfort – Through advanced temperature and usage controls, efficient appliances provide added convenience, aligning with how households actually utilize the equipment.
Contributes to sustainability goals – Governments and communities have efficiency targets to reduce carbon emissions. Smart appliances allow households to contribute to local and national sustainability objectives.

Understanding Traditional Water Heaters

Most residential water heaters today are conventional storage tank models that maintain a constant reservoir of hot water. While being fairly reliable, these traditional heaters aren’t very energy-efficient – they continue heating water even when household demand is low.

Plus, temperature settings can’t be adjusted based on occupancy patterns. Over time, sediment build-up and spikes in usage can also cause conventional water heaters to break down frequently while consuming excess energy that shows up on utility bills. The Energy Information Administration estimated over 13% of a home’s overall energy use goes towards heating water with inefficient units.

What Makes a Water Heater “Smart”?

Unlike traditional water heaters, smart models are WIFI-enabled to optimize settings through companion apps and connect with home automation systems. Using built-in sensors and analytics, smart heaters can track usage patterns and recognize times of peak demand. Advanced controls then allow temperature adjustments based on household needs to prevent energy waste.

Smart water heaters can also detect issues like leaks and alter operations to mitigate risks, even providing alerts to homeowners remotely about abnormal conditions. Many models feature a touchscreen display showing energy usage data and anti-leak features. Some advanced units, such as the Premier^® AL S Hybrid Electric Heat Pump by State, even harness alternative energy sources like heat pump technology to maximize efficiency. This water heater has a smart anode that adapts to local water conditions to extend the life of the water heater.

How Smart Water Heaters Save Energy

Smart water heater settings like vacation modes minimize heating when hot water needs are lower, while voice assistant integrations allow easier temperature adjustments. Built-in analytics track usage trends over time, learning a household’s unique requirements. Smart water heaters then leverage this data along with external signals like weather changes to optimize heating capabilities aligned with demand. This level of precise temperature control and alignment with usage patterns isn’t possible with conventional models. Over a year, optimizing heating to match demand can save a household 18% on water heating costs.

Cost Savings with Smart Water Heaters

Choosing an ENERGY STAR-certified smart water heater can lead to annual savings of $30-$50 on utility bills. Over a 10-15 year lifespan, the cumulative savings of smart water heater energy optimization provide a notable return on investment. Many utility providers even offer rebates and incentives when homeowners upgrade from a standard model to certain high-efficiency smart water heaters. This further reduces the payback period.

With advanced leak detection alerts also mitigating the risk of catastrophic water damage, smart water heater upgrades can keep saving for years through both avoided energy costs and preventative maintenance features. Compared to conventional heaters, which lose efficiency over time, smart water heaters continually optimize usage, leading to growing cost savings.

Environmental Impact

Smart water heaters don’t just save homeowners money annually; they also conserve natural resources by reducing carbon emissions from energy generation. One American Council for an Energy-Efficient Economy study found upgrading residential water heaters to condensing or heat pump technology could cut 58% of CO₂ emissions.

With lower energy consumption than standard models, every ENERGY STAR-certified smart water heater installed contributes to sustainability initiatives and environmental preservation for communities nationwide. So, improving water heater efficiency aids climate goals while saving households money.

Considerations for Installation and Maintenance

To fully capitalize on their advanced features, smart water heaters typically require professional installation plus compatibility with household digital management equipment like smart thermostats.

Electrical capacity should also be evaluated prior to upgrading in case service panels need to be updated to handle new energy-monitoring capabilities.

Homeowners will also want to check if acquired rebates require specific maintenance checks and adherence to usage guidelines.

Overall, smart water heaters need about as much routine servicing as conventional heaters but do necessitate some maintenance of connectivity elements and usage settings.

Future Trends and Innovations

The smart water heater space will continue rapidly innovating in the coming years.

One emerging technology is cloud connectivity, which enables broader data aggregation, remote analytics, and usage insights via artificial intelligence.
Cloud capabilities can compare household settings and behaviors globally to further optimize smart water heating.
Hybrid systems pairing smart heat pump technology and solar thermal power sources will also expand as renewable adoption increases.
Geothermal heat exchangers are another trend using underground thermal energy for improved efficiency.
Voice assistant integration will progress as well, with advancements allowing homeowners to customize heating profiles simply by asking aloud.

Projections indicate over 30% of US households could utilize smart water heaters within five years, given climbing energy costs. As technology and energy prices evolve, so will the capabilities of smart systems in revolutionizing home water heating through even smarter functionalities and greater savings. Early adopters stand to gain the most in long-term cost reduction and sustainability.

Start Saving with Coburn’s

With customizable controls, robust usage analytics, and advanced connectivity, today’s smart water heaters offer homeowners the next level in energy savings and cost reduction while also benefiting the environment.

Stop into your local Coburn’s to learn more about our smart water heater selection, like the Premier^® AL S Hybrid Electric Heat Pump by State. Our water heating experts can advise you on selections, rebates, professional installation, and optimizing settings for your home.