How is the $320 per year in savings calculated for the GeoSpring hybrid water heater?
The $320 per year in savings is calculated based on a Department of Energy (DOE) test procedure comparing a standard 50-gallon electric tank water heater using 4,881 kilowatt-hours per year versus the GeoSpring hybrid water heater using 1,856 kilowatt-hours per year. The GE hybrid water heater saves 3,025 kilowatt-hours per year comparatively. The kWh savings is multiplied by the national average electricity rate of 10.65 cents per kilowatt-hour, which equals $322 per year in savings. For simplicity, GE rounds the savings to $320 per year. The DOE test procedure mentioned above is the same test procedure used to determine the Annual Operating Cost printed on the product’s Energy Guide Label. A standard electric water heater using 4,881 kWh per year at 10.65 cents per kWh would cost $520 per year to operate. The GeoSpring hybrid water heater costs $198 per year to operate. Subtracting the two Energy Guide label values equals $322 in energy cost savings. In parts of the country where the
