Did you know that Water heating is the third largest energy expense in your home? It can be as much as 13% of your utility bill. Four of the most effective ways to save: use less hot water, turn down the thermostat on your water heater, insulate your water heater, or buy a new, more efficient model.

Other tips that I gathered from an article our home warranty company sent to us include:

• Install aerating, low-flow faucets and showerheads.
• Repair leaky faucets promptly; a leaky faucet wastes gallons of water in a short period of time.
• Lower the thermostat on your water heater; water heaters sometimes come from the factory with high temperature settings, but a setting of 120°F provides comfortable hot water for most uses.
• Take more showers than baths. Bathing uses the most hot water in the average household.
• Insulate your electric hot-water storage tank, but be careful not to cover the thermostat. Follow the manufacturer's recommendations.
• Insulate your natural gas or oil hot-water storage tank, but be careful not to cover the water heater's top, bottom, thermostat, or burner compartment. Follow the manufacturer's recommendations; when in doubt, get professional help.
• Insulate the first 6 feet of the hot and cold water pipes connected to the water heater.
• If you are in the market for a new dishwasher or clothes washer, consider buying an efficient, water-saving ENERGY STAR model to reduce hot water use.
• Install heat traps on the hot and cold pipes at the water heater to prevent heat loss. Some new water heaters have built-in heat traps.
• Drain a quart of water from your water tank every 3 months to remove sediment that impedes heat transfer and lowers the efficiency of your heater. The type of water tank you have determines the steps to take, so follow the manufacturer's advice.
• Although most water heaters last 10-15 years, it's best to start shopping for a new one if yours is more than 7 years old. Doing some research before your heater fails will enable you to select one that most appropriately meets your needs.

For Long Term Savings, it is recommended that you buy a new energy-efficient water heater. It may cost more than a standard water heater, but the energy savings will more than pay the difference during the lifetime of the appliance. Check out www.aceee.org for the energy performance of the most energy-efficient water heaters.

There are some other systems such as a drain water waste heat recovery system. Recent studies showed a savings of up to 30%. Natural gas on-demand (tankless water heaters) are becoming very popular. These have also shown up to 30% savings.

Solar Water Heaters can really be a great investment. (There are some HOAs that won't permit these.) These are very efficient if you heat water with electricity, have high electric rates, and have an unshaded, south-facing location (such as a roof) on your property. Solar units are environmentally friendly and there are some new styles that are made to blend with the architecture of your house. Solar water heaters avoid the harmful greenhouse gas emissions associated with electricity production.

Online statistics show that more than 1.5 million homes and businesses in the United States have invested in solar water heating systems. These surveys report that more than 94% of these customers consider the systems a good investment. They also say that during a 20-year period, one solar water heater can avoid more than 50 tons of carbon dioxide emissions.