Systems and methods for providing two energy level settings for a refrigerator hot water heater are provided. An exemplary refrigerator includes a refrigeration system that includes an evaporator. The refrigerator includes a defrost assembly for defrosting one or more of the evaporator or a freezer compartment. The refrigerator includes a water dispensing assembly that includes a heating element for heating a volume of water. The refrigerator includes a controller configured to operate the heating element at a first energy level when the defrost assembly is not operating and to operate the heating element at a second energy level when the defrost assembly is operating. An exemplary method includes detecting that the refrigerator is performing an energy critical task. The method includes enabling a reduced consumption of electrical power by a heating element included in a water dispensing assembly of the refrigerator when the refrigerator is performing the energy critical task.