Were you one of the many Californians caught off guard by their natural gas bill in January? We’re right there with you. Natural gas prices have become a bit more unpredictable since their meteoric peak during the winter months. But there are a few ways to combat surprises like these in the future.
For over 15 years, we’ve helped Los Angeles County homeowners lower their gas bills by installing tankless water heaters. While most tankless water heaters capable of providing hot water to an entire household are gas-powered, they have one major trick up their sleeve.
But before we get into how a tankless water heater will save you from unexpected natural gas spikes in the future, let’s take a look at how we got here. Understanding how natural gas prices became unmanageable for many homeowners will help highlight where tankless water heaters can provide some relief.
Why Did Natural Gas Prices Spike?
Regional and national markets determine natural gas prices. Providers like SoCalGas purchase gas from these markets and bill customers at cost, meaning there is no markup on the gas, and SoCalGas does not profit.
Each month, SoCalGas submits an estimate for the coming month’s natural gas prices. The company’s final estimate for this past January, when prices peaked, was nearly five times that of last year's January. But how did we get to this point?
There are a few reasons for the natural gas price hike, according to SoCalGas:
- Abnormally low temperatures on the West Coast
- Higher natural gas demand caused by heating in areas with lower temperatures
- Lower natural gas supply from Canada and the Rocky Mountains
- Lower interstate pipeline capacity due to pipeline maintenance in West Texas
- Low natural gas storage levels on the West Coast
You might call it a perfect storm for a spike in natural gas prices. While natural gas prices appear to be on the decline, many are still reeling from the previous month.
But what can you do to dodge the effects on your wallet next time around? There are a few things every homeowner can do, but if you’re really interested in making a change, then a tankless water heater might be what you’re looking for.
How Can a Tankless Water Heater Lower My Natural Gas Bill?
We won’t lie to you and pretend that a tankless water heater is for everyone, but for those interested in lowering their monthly bills, it could make a large impact. Tankless water heaters have the edge over traditional tank-style water heaters solely based on their design.
The main difference between a tank-style and a tankless water heater is exactly what it sounds like: the absence of a tank. Because there is no tank with a tankless water heater, there’s no need to heat large amounts of water when on standby.
With a tankless water heater, you’re getting hot water on demand, which means there’s no wasted gas when it comes to providing your home with hot water. There isn’t much else to it than that. You’ll also qualify for rebates and credits to help recoup some of your initial investment.
If you’re looking to lower your natural gas bills, switching to a tankless water heater could be the right move. While there is an upfront cost to adopting a tankless water heater, long-term savings play a large role in recouping your initial investment. No more heating water while you’re at the office or on a weekend trip, only hot water when you need it.
For more general information on tankless water heaters, check out our Ultimate Tankless Water Heater Guide. This guide is packed with answers to many frequently asked questions for those exploring tankless water heaters for the first time.
What Can I Do in the Meantime to Lower My Natural Gas Bill?
If you need more immediate relief and aren’t in the market for a tankless water heater, you can still do a few things. Head over to SoCalGas’ Gas Assistance Fund page to see if you qualify for a one-time grant of up to $100.
To qualify, you’ll need to meet the following criteria listed on SoCalGas’ website:
- The natural gas bill must be in the name of the applicant requesting assistance.
- The bill address must be the applicant’s primary residence.
- The applicant must not apply for more than the maximum GAF allowance for the current program year.
- The applicant must meet the income guidelines listed below:
(Image via SoCalGas)
If you don’t meet the requirements for the Gas Assistance Fund, you can always take matters into your own hands. Adopting the best energy-saving practices can help lower your monthly bill. While it may not be the type of immediate relief you’re after, making changes to the way you run your home can stack savings over time.
A few things you can do on your own to help lower your natural gas bill, according to SoCalGas, are:
- Lowering your thermostat three to five degrees–if health permits–can save up to 10 percent on heating costs.
- Installing proper caulking and weather-stripping can save roughly 10 to 15 percent on heating and cooling bills.
- Washing clothes in cold water to save up to 10 percent on water heating costs.
- Considering turning down the temperature on your water heater, keeping in mind that most hot water heaters require a temperature of 120 degrees or higher.
- Limiting use of non-essential natural gas appliances such as spas and fireplaces.
With the future remaining uncertain regarding natural gas prices, it’s best to adopt these cost-saving practices if possible. If you’re looking for more dramatic results, a tankless water heater is an ideal appliance to swap in and ditch the gas-hungry tank-style water heater.
Fighting High Natural Gas Prices with Tankless Water Heaters
We’ve touched on how natural gas prices soared in January compared to last year, and we’ve also given you a look at how tankless water heaters can save you money on your monthly natural gas bills. For good measure, we also threw in some other ways to save. Now, you’ve got a few options to consider when it comes to saving money on your natural gas bills.
While we stand by tankless water heaters’ ability to cut costs in the natural gas department, we understand that they pose a larger upfront investment than some homeowners have in the budget. It’s always best to do what’s right for you and your home, so if a tankless water heater isn’t in the cards, just know that you can help manage costs in other ways.
If you live in Los Angeles County or a surrounding city and are interested in a tankless water heater, visit our tankless water heater service page or click one of the below buttons to book a consultation.