Like every other household appliance, your water heater could develop a problem and stop working. Some water heater issues can affect your water heater’s efficiency, forcing it to work harder and/or longer (causing your electricity bill to shoot up).

Here are some ways a bad water heater can cause your energy bill to skyrocket.

Bad Insulation

The amount of insulation affects a water heater’s ability to preserve heat. The better the insulation, the more capable the water heater is of minimizing heat loss.

A water heater with a bad or broken insulation loses heat rapidly, causing the heating element to work harder and longer in order to reach and maintain the desired temperature.


Water heater leaks provide entry points for cold water. When cold water keeps entering the tank, the desired temperature is not achieved (which, again, will force the heating element to work harder to heat the water).

Leakage could develop either inside your water heater or at the connection point. Before things take a turn for the worse, have a technician inspect and repair your water heater.

Overheating Due to a Faulty Thermostat

A thermostat is designed to continuously monitor water temperature. When the temperature rises beyond a certain point, your thermostat turns off the electric supply to the heating element.

Conversely, when the water temperature dips below a certain preset level, the thermostat turns on the electricity supply to the heating element.

Like other household equipment, thermostats can develop problems over time. A faulty thermostat might be unable to cut the electricity supply to the heating element after the desired temperature is reached, causing it to consume electricity for hours at a stretch.

There are several other adverse impacts related to overheating. Superheated water can cause burns. Overheating can cause the pressure inside your tank to increase. If you fail to move swiftly to address the problem, pressure can reach dangerously high levels, causing your water heater to burst or develop leaks.

Water heaters have a pressure valve designed to automatically open to release the extra pressure. Age-related deterioration can cause valve components to corrode, affecting its functioning.

If you have reasons to believe that your thermostat is going bad, have a technician inspect it as soon as possible.

Inefficiency of the Heating Element

Cracks and calcium deposits can affect the heating element’s efficiency. A water heater with a compromised heating element is an energy vampire.

John Owens Services is a leading plumbing contractor in Novato. We are your go-to team for tankless water heater installation near you in Novato. Whether you have a minor water heater issue or are struggling with a major problem, we can help. To learn more, call 415-942-6565.


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