1 Turn down the temperature: Factory settings for hot water systems are normally 130-140 degrees, which is hot enough to scald. Lowering it to a comfortable 120 degrees will save you at least 3-5% on your water heating costs.

2 Insulate: For additional savings, insulate your water storage tank and exposed piping so hot water doesn’t cool while going to its destination. Just be sure not to cover the thermostat or the tank’s top or bottom, or burner for gas tanks.

3 Install a timer: Standard tank water heaters are designed to keep a full tank of hot water ready at all times. Installing a timer that turns the system off overnight or while you're away can result in big savings.

4 Use less: Install a low-flow showerhead, wash clothes in cold water, and use the energy efficiency setting on your dishwasher for a significant reduction in your water heating costs. You, your clothes and dishes will be just as clean.