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Ideally all our homes would come with a tankless water heater already installed. But since they are relatively new to the market, here are a few other tips and tricks that can help save some energy:


Most water heaters come with a dial near the bottom to adjust the temperature. They either indicate degrees, A,B,C, D, or Low to High. By simply turning your dial one notch cooler, you can save a significant amount of energy. Just remember, if you want to take a bath, you may need to turn the heater back up.
If you prefer to have very hot water close at hand, you might want to insulate your water heater and the pipes coming out of it. Pipe insulation costs less than $2 for an 8 foot section and as long as you have access to the pipes even the least handy can install it. If you can't get at the pipes, consider wrapping your water heater in a water heater jacket (they can be found at most hardware stores). Be sure to follow the directions exactly and keep the insulation away from the flue and the drain so you don't accidentally start a fire.