Wrap your water heater with an insulation blanket. Insulation blankets are easy to install and can be purchased at many retail or hardware stores.
Insulate the first 3 to 6 feet of the hot-water pipes leading from the water heater.
Reduce the amount of hot water that you use to shower by installing a low-flow showerhead. This can cut the water needed for showers by as much as half.
Repair leaky faucets promptly. A faucet that leaks a single drop of hot water each second can waste 200 gallons of hot water per month and waste the energy used to heat it.
Set your water-heater temperature at 120 degrees F (140 degrees F if you have a dishwasher). Each reduction in temperature of 10 degrees F will save you 3 percent to 5 percent on your water-heating costs.
