How much does it cost to run a point-of-use water heater?
A point-of-use water heater costs about 63¢ per hour, 16¢ a day, $4.79 a month and $57 a year at typical use (15 minutes a day) and the U.S. average rate of 17.99¢/kWh. Point-of-use tankless heaters draw 3.5-13 kW for a single sink or shower and only while water flows.
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Cost by setting
| Setting | Watts | Per hour | Per day | Per month | Per year |
|---|---|---|---|---|---|
| 120 V 3.5 kW | 3,500 | 63¢ | 16¢ | $4.79 | $57 |
| 240 V 6 kW | 6,000 | $1.08 | 27¢ | $8.21 | $99 |
| 240 V 9.5 kW | 9,500 | $1.71 | 43¢ | $13.00 | $156 |
At 15 minutes a day and 17.99¢/kWh.
Cost by hours of use
| Hours per day | kWh/day | Per day | Per month | Per year (all year) |
|---|---|---|---|---|
| 1 hour | 3.50 | 63¢ | $19.16 | $230 |
| 2 hours | 7.00 | $1.26 | $38.33 | $460 |
| 4 hours | 14.00 | $2.52 | $76.66 | $920 |
| 8 hours | 28.00 | $5.04 | $153 | $1,840 |
| 12 hours | 42.00 | $7.56 | $230 | $2,760 |
| 24 hours | 84.00 | $15.11 | $460 | $5,520 |
Cost to run a point-of-use water heater in every state
The same point-of-use water heater costs $39 a year in North Dakota and $139 in Hawaii, at each state's average residential rate (12 months ending July 2026).
| State | Rate | Per hour | Per month | Per year |
|---|---|---|---|---|
| North Dakota | 12.32¢ | 43¢ | $3.28 | $39 |
| Idaho | 12.65¢ | 44¢ | $3.37 | $40 |
| Nebraska | 12.86¢ | 45¢ | $3.42 | $41 |
| Louisiana | 12.99¢ | 45¢ | $3.46 | $42 |
| Utah | 13.32¢ | 47¢ | $3.55 | $43 |
| Nevada | 13.36¢ | 47¢ | $3.56 | $43 |
| Arkansas | 13.43¢ | 47¢ | $3.58 | $43 |
| Tennessee | 13.56¢ | 47¢ | $3.61 | $43 |
| Oklahoma | 13.70¢ | 48¢ | $3.65 | $44 |
| Montana | 13.84¢ | 48¢ | $3.69 | $44 |
| Kentucky | 13.92¢ | 49¢ | $3.71 | $44 |
| Missouri | 13.95¢ | 49¢ | $3.72 | $45 |
| Wyoming | 14.01¢ | 49¢ | $3.73 | $45 |
| Washington | 14.12¢ | 49¢ | $3.76 | $45 |
| Iowa | 14.13¢ | 49¢ | $3.76 | $45 |
| South Dakota | 14.20¢ | 50¢ | $3.78 | $45 |
| Mississippi | 14.77¢ | 52¢ | $3.93 | $47 |
| North Carolina | 14.77¢ | 52¢ | $3.93 | $47 |
| Kansas | 15.09¢ | 53¢ | $4.02 | $48 |
| Georgia | 15.12¢ | 53¢ | $4.03 | $48 |
| New Mexico | 15.32¢ | 54¢ | $4.08 | $49 |
| Florida | 15.39¢ | 54¢ | $4.10 | $49 |
| Arizona | 15.40¢ | 54¢ | $4.10 | $49 |
| West Virginia | 15.48¢ | 54¢ | $4.12 | $49 |
| Oregon | 15.50¢ | 54¢ | $4.13 | $50 |
| South Carolina | 15.64¢ | 55¢ | $4.17 | $50 |
| Texas | 15.96¢ | 56¢ | $4.25 | $51 |
| Minnesota | 16.22¢ | 57¢ | $4.32 | $52 |
| Alabama | 16.44¢ | 58¢ | $4.38 | $53 |
| Virginia | 16.48¢ | 58¢ | $4.39 | $53 |
| Colorado | 16.58¢ | 58¢ | $4.42 | $53 |
| Indiana | 16.94¢ | 59¢ | $4.51 | $54 |
| Delaware | 17.79¢ | 62¢ | $4.74 | $57 |
| Ohio | 18.25¢ | 64¢ | $4.86 | $58 |
| Wisconsin | 18.74¢ | 66¢ | $4.99 | $60 |
| Illinois | 18.79¢ | 66¢ | $5.00 | $60 |
| Pennsylvania | 20.70¢ | 72¢ | $5.51 | $66 |
| Maryland | 21.03¢ | 74¢ | $5.60 | $67 |
| Michigan | 21.05¢ | 74¢ | $5.61 | $67 |
| New Jersey | 23.78¢ | 83¢ | $6.33 | $76 |
| Vermont | 23.80¢ | 83¢ | $6.34 | $76 |
| District of Columbia | 24.20¢ | 85¢ | $6.45 | $77 |
| New Hampshire | 26.67¢ | 93¢ | $7.10 | $85 |
| Alaska | 26.85¢ | 94¢ | $7.15 | $86 |
| Connecticut | 27.99¢ | 98¢ | $7.45 | $89 |
| New York | 28.39¢ | 99¢ | $7.56 | $91 |
| Rhode Island | 29.27¢ | $1.02 | $7.80 | $94 |
| Maine | 29.31¢ | $1.03 | $7.81 | $94 |
| Massachusetts | 30.43¢ | $1.07 | $8.10 | $97 |
| California | 32.99¢ | $1.15 | $8.79 | $105 |
| Hawaii | 43.51¢ | $1.52 | $11.59 | $139 |
How to cut the cost
- Use a 0.5 gpm aerator at sinks so a small heater can keep up.
- Set it to 105-110°F for handwashing.
- Install it close to the faucet to avoid waiting for hot water.
- Turn off the breaker in rarely used guest baths.
Cheaper ways to get the job done
Cuts the flow the heater must warm.
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Compare with similar appliances
| Appliance | Watts | Typical use | Per month | Per year |
|---|---|---|---|---|
| Point-of-use water heater | 3,500 | 15 minutes a day | $4.79 | $57 |
| Mini tank water heater | 1,440 | 450 kWh a year | $6.75 | $81 |
| Tankless electric water heater | 24,000 | 3,700 kWh a year | $55.47 | $666 |
| Electric water heater | 4,500 | 4,500 kWh a year | $67.46 | $810 |
| Heat pump water heater | 450 | 1,300 kWh a year | $19.49 | $234 |
| Hot water recirculation pump | 25 | 24 hours a day | $3.29 | $39 |
Head-to-head comparisons
Frequently asked questions
How much does it cost to run a point-of-use water heater per hour?
A point-of-use water heater drawing 3,500 watts uses 3.50 kWh per hour. At the U.S. average of 17.99¢/kWh that's 63¢ per hour. In North Dakota (12.32¢) it's 43¢. In Hawaii (43.51¢) it's $1.52.
How much does it cost to run a point-of-use water heater per month?
At typical use (15 minutes a day), a point-of-use water heater costs about $4.79 a month and $57 a year, at the U.S. average rate. Enter your ZIP in the calculator above for your utility's rate.
How many watts does a point-of-use water heater use?
Most point-of-use water heaters use 2,400 to 13,000 watts, depending on the setting (120 v 3.5 kw 3,500 W, 240 v 6 kw 6,000 W, 240 v 9.5 kw 9,500 W). Check the label on the back or bottom for your model's exact rating.
How many kWh does a point-of-use water heater use?
About 0.88 kWh a day and 320 kWh a year at typical use (15 minutes a day).
Does a point-of-use water heater use a lot of electricity?
It's a moderate load: 320 kWh a year is about 3% of the average U.S. home's yearly use.
Is it cheaper to run a point-of-use water heater or a mini tank water heater?
At typical use, a point-of-use water heater costs about $57 a year versus $81 for a mini tank water heater. So the point-of-use water heater is cheaper by about $23 a year. Use the comparison table above to compare them at your own settings.
How can I lower the cost of running a point-of-use water heater?
- Use a 0.5 gpm aerator at sinks so a small heater can keep up.
- Set it to 105-110°F for handwashing.
- Install it close to the faucet to avoid waiting for hot water.
Rates updated 2026-10-21: EIA data through July 2026. Typical wattage and usage reviewed against DOE, ENERGY STAR and manufacturer specs. Methodology.