Can an electric water heater timer save you money?

Can an electric water heater timer save you money? It depends on a few factors:

1. Are you on a time-of-use rate plan, *especially* with a demand fee? If so, then yes.

2. Do you frequently leave the house for more than a day at time? If so, then yes.

3. Is your water heater older -- 15 years or so? If so, then yes.

BUT ...

1. If you have an on-demand water heater, then no.

2. If you're on a basic plan that doesn't discount your energy usage during off-peak times (or increase the cost of energy during on-peak times), then no.

3. If you have a hybrid/heat pump water heater, then probably not, and it might be more work than it's worth.

4. If you have a water heater that has a scheduling feature and digital settings that might be reset if the power is cut off, then a timer is probably more work than it's worth.

5. If you have a newer or even high-efficiency electric-resistance water heater (such as the Rheem Marathon), but you are on a time-of-use plan with demand, then the answer is probably yes, but the savings would be less than if you had an older water heater.

So, while a water heater timer can save you money -- sometimes $100 or more per year -- it's not always worth the cost.

PS A good thing to note is that the timers can be electromechanical, digital, or even Wifi (programmable by smartphone). The price points range from about $60 for the simpler electromechanical units to about $250 for Wifi.

“Old-school” electromechanical water-heater timer.

PPS Don't confuse the water heater timer with the recirculation pump timer. If you have an electric water heater with a recirculation pump & timer, and you are on a time-of-use plan, be sure to set the timer clock to the accurate time, and set the timer to turn off the pump during peak hours. Why? Because the water leaves the heater hot & comes back cooler. That can turn the water heater on. If it happens during peak hours, you pay more for the power. If you're on a demand plan (APS customers and coming soon for SRP customers), then it could kick your bill up drastically. Also, there's no sense recirculating the water overnight when you're sleeping, so set the timer to stay off until about 15-30 minutes before your first shower or hot-water need of the day (shaving, etc.).

Remember that an electric-resistance water heater can use as much power as a 4-ton or 5-ton central air-conditioning system. You don’t want it to run during peak demand hours.