Is an Efficient Electric Water Heater Worth It in the UK? (2026)
With electricity at 26.3p per kWh in the UK, an efficient electric water heater pays for itself in 2.5 years, even if your current one still works.
An efficient electric water heater cuts electricity by 70%: about 3,066 kWh, worth £806.97 a year in the UK. Worth it now
- From
- Resistance tank water heater, about 4,380 kWh a year
- To
- ENERGY STAR heat pump water heater, about 1,314 kWh a year
- Usage
- Hot water for a family of four
| Scenario | You pay | Payback | Net over its life |
|---|---|---|---|
| Replace a working electric water heater now | £2,000 | 2.5 years | £8,491 |
| Replacing anyway: choose the efficient one | £1,200 | 1.5 years | £9,291 |
Prices are typical figures; type your own quotes above. Net over its life is the total saving over the years it lasts minus what you pay. It ignores inflation, interest and changes in electricity prices, which is conservative while prices are rising.
Our take
Worth it for most households with electric hot water, especially when the old tank is due for replacement anyway. Needs a space that stays above about 5 C.
How the two models compare
| Inefficient | Efficient | |
|---|---|---|
| Model | Resistance tank water heater | ENERGY STAR heat pump water heater |
| Electricity per year | 4,380 kWh | 1,314 kWh |
| Cost per year here | £1,153 | £345.84 |
| Over 13 years | £14,987 | £4,496 |
Usage behind these figures: hot water for a family of four. Basis: ENERGY STAR: heat pump water heaters use about 70% less electricity than standard electric tanks, about $550 a year for a family of four at US prices. The Electric Water Heater page prices the appliance at its own typical hours, which you can change there.
The same upgrade in other countries
| Country | Saving per year | Payback, replacing now | Payback, replacing anyway | Verdict |
|---|---|---|---|---|
| United States (average) | $562.30 | 3.6 years | 2.1 years | Worth it when replacing |
| United Kingdom | £806.97 | 2.5 years | 1.5 years | Worth it now |
| Germany | €1,134 | 1.8 years | 1.1 years | Worth it now |
| France | €613.51 | 3.3 years | 2.0 years | Worth it when replacing |
| Australia | A$1,073 | 1.9 years | 1.1 years | Worth it now |
| Canada (average) | C$429.24 | 4.7 years | 2.8 years | Worth it when replacing |
Local electricity prices, with the same purchase price read in local currency, which is a simplification. The saving column is what matters: the higher the price of electricity, the faster any upgrade pays back.
Other upgrades in the UK, fastest payback first
- LED Light Bulbsaves £24.74 a year · worth it now
- Dehumidifiersaves £142.13 a year · worth it now
- Pool Pumpsaves £369.53 a year · worth it now
- Wi-Fi Routersaves £27.64 a year · worth it when replacing
- Electric Sauna Heatersaves £446.65 a year · worth it when replacing
- Chest Freezersaves £81.59 a year · worth it when replacing
- Hot Tubsaves £672.48 a year · worth it when replacing
- Clothes Dryersaves £118.44 a year · worth it when replacing
- Air Conditionersaves £65.80 a year · worth it when replacing
- Refrigeratorsaves £113.18 a year · worth it when replacing
- Desktop Computersaves £80.80 a year · not for the electricity
- Space Heatersaves £236.88 a year · not for the electricity
- Electric Stovesaves £38.43 a year · not for the electricity
- Dishwashersaves £36.85 a year · worth it when replacing
- Washing Machinesaves £25.00 a year · worth it when replacing
- Televisionsaves £19.21 a year · not for the electricity