Even if you aren’t quite prepared to invest in a new hot water tank or tankless water heater, there are still a number of ways to reduce the amount of wasted energy used to heat water.
Tank Insulation: To keep hot water hot in an electrically heated tank for a longer period of time from your local plumbing supplier.(Note that gas or oil-fired heaters can make tank insulation a little more difficult, so consult with a professional before making such an attempt).
Pipe Insulation: To prevent that water in the pipes from cooling, wrap pipe insulation on the hot water pipes between your tank and your faucets. This is easy to do.
Set-back Thermostat: If you have an electric water heater, install a timer that turns it off when you don’t need it or during peak electricity demands. At the very least, reducing the temperature at which the water is maintained will help save heating costs.
Electronic Pilot Light: Fuel-fired water heaters that use a constantly burning “pilot light” are considered wasteful. The pilot light can be replaced with an electronic sentry that ignites the heater as required, without burning extra fuel.