How much does it cost to run an instant hot water dispenser?
An instant hot water dispenser costs about 20¢ a day, $6.00 a month and $72 a year at typical use (400 kWh a year) and the U.S. average rate of 17.99¢/kWh. Under-sink instant hot taps keep about 2/3 gallon at 190-200°F with a 750 W heater; standby losses alone add up to roughly 300-500 kWh a year.
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Cost to run an instant hot water dispenser in every state
The same instant hot water dispenser costs $49 a year in North Dakota and $174 in Hawaii, at each state's average residential rate (12 months ending July 2026).
| State | Rate | Per month | Per year |
|---|---|---|---|
| North Dakota | 12.32¢ | $4.11 | $49 |
| Idaho | 12.65¢ | $4.22 | $51 |
| Nebraska | 12.86¢ | $4.29 | $51 |
| Louisiana | 12.99¢ | $4.33 | $52 |
| Utah | 13.32¢ | $4.44 | $53 |
| Nevada | 13.36¢ | $4.45 | $53 |
| Arkansas | 13.43¢ | $4.48 | $54 |
| Tennessee | 13.56¢ | $4.52 | $54 |
| Oklahoma | 13.70¢ | $4.57 | $55 |
| Montana | 13.84¢ | $4.61 | $55 |
| Kentucky | 13.92¢ | $4.64 | $56 |
| Missouri | 13.95¢ | $4.65 | $56 |
| Wyoming | 14.01¢ | $4.67 | $56 |
| Washington | 14.12¢ | $4.71 | $56 |
| Iowa | 14.13¢ | $4.71 | $57 |
| South Dakota | 14.20¢ | $4.73 | $57 |
| Mississippi | 14.77¢ | $4.92 | $59 |
| North Carolina | 14.77¢ | $4.92 | $59 |
| Kansas | 15.09¢ | $5.03 | $60 |
| Georgia | 15.12¢ | $5.04 | $60 |
| New Mexico | 15.32¢ | $5.11 | $61 |
| Florida | 15.39¢ | $5.13 | $62 |
| Arizona | 15.40¢ | $5.13 | $62 |
| West Virginia | 15.48¢ | $5.16 | $62 |
| Oregon | 15.50¢ | $5.17 | $62 |
| South Carolina | 15.64¢ | $5.21 | $63 |
| Texas | 15.96¢ | $5.32 | $64 |
| Minnesota | 16.22¢ | $5.41 | $65 |
| Alabama | 16.44¢ | $5.48 | $66 |
| Virginia | 16.48¢ | $5.49 | $66 |
| Colorado | 16.58¢ | $5.53 | $66 |
| Indiana | 16.94¢ | $5.65 | $68 |
| Delaware | 17.79¢ | $5.93 | $71 |
| Ohio | 18.25¢ | $6.08 | $73 |
| Wisconsin | 18.74¢ | $6.25 | $75 |
| Illinois | 18.79¢ | $6.26 | $75 |
| Pennsylvania | 20.70¢ | $6.90 | $83 |
| Maryland | 21.03¢ | $7.01 | $84 |
| Michigan | 21.05¢ | $7.02 | $84 |
| New Jersey | 23.78¢ | $7.93 | $95 |
| Vermont | 23.80¢ | $7.93 | $95 |
| District of Columbia | 24.20¢ | $8.07 | $97 |
| New Hampshire | 26.67¢ | $8.89 | $107 |
| Alaska | 26.85¢ | $8.95 | $107 |
| Connecticut | 27.99¢ | $9.33 | $112 |
| New York | 28.39¢ | $9.46 | $114 |
| Rhode Island | 29.27¢ | $9.76 | $117 |
| Maine | 29.31¢ | $9.77 | $117 |
| Massachusetts | 30.43¢ | $10.14 | $122 |
| California | 32.99¢ | $11.00 | $132 |
| Hawaii | 43.51¢ | $14.50 | $174 |
How to cut the cost
- Lower the thermostat on the tank to 180-185°F.
- Put the tank on a timer or switch it off at night and when traveling.
- Insulate the tank if it's warm to the touch.
Cheaper ways to get the job done
Heats water only when you need it, eliminating 24/7 standby loss.
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Compare with similar appliances
| Appliance | Watts | Typical use | Per month | Per year |
|---|---|---|---|---|
| Instant hot water dispenser | 750 | 400 kWh a year | $6.00 | $72 |
| Electric kettle | 1,500 | 6 minutes a day | $0.82 | $10 |
| Water dispenser | 100 | 400 kWh a year | $6.00 | $72 |
| Garbage disposal | 500 | 2 minutes a day | $0.08 | $1 |
| Blender | 800 | 3 minutes a day, 4 days a week | $0.13 | $2 |
| Toaster | 900 | 6 minutes a day | $0.49 | $6 |
| Rice cooker | 600 | 45 minutes a day, 4 days a week | $0.97 | $12 |
Head-to-head comparisons
Frequently asked questions
How much does it cost to run an instant hot water dispenser per hour?
An instant hot water dispenser is usually measured per year rather than per hour. It uses about 400 kWh a year, which works out to 20¢ a day.
How much does it cost to run an instant hot water dispenser per month?
At typical use (400 kWh a year), an instant hot water dispenser costs about $6.00 a month and $72 a year, at the U.S. average rate. Enter your ZIP in the calculator above for your utility's rate.
How many watts does an instant hot water dispenser use?
Most instant hot water dispensers use 500 to 1,300 watts. Check the label on the back or bottom for your model's exact rating.
How many kWh does an instant hot water dispenser use?
About 1.10 kWh a day and 400 kWh a year at typical use (400 kWh a year).
Does an instant hot water dispenser use a lot of electricity?
It's a moderate load: 400 kWh a year is about 4% of the average U.S. home's yearly use.
Is it cheaper to run an instant hot water dispenser or an electric kettle?
At typical use, an instant hot water dispenser costs about $72 a year versus $10 for an electric kettle. So the electric kettle is cheaper by about $62 a year. Use the comparison table above to compare them at your own settings.
How can I lower the cost of running an instant hot water dispenser?
- Lower the thermostat on the tank to 180-185°F.
- Put the tank on a timer or switch it off at night and when traveling.
- Insulate the tank if it's warm to the touch.
Rates updated 2026-10-21: EIA data through July 2026. Typical wattage and usage reviewed against DOE, ENERGY STAR and manufacturer specs. Methodology.