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Install a Mosaic Power System on your water heater to help regulate grid energy.

Mosaic Power's operating model focuses on "energy optimization." Throughout the day, operators of the electric grid send signals every two seconds indicating the load on the grid and whether there is excess power or heightened demand.

The system is designed to ensure that water heaters operate normally and consistently deliver hot water on demand. Consumers who install the Mosaic Power system, would not see any change in the energy bill for their water heater. They would, however, receive an annual check from Mosaic for about $50.

Wash clothes in cold water at least 75% of the time

When you wash your clothes in hot water, only 10% of the required energy goes to running the machine; 90% goes to heating the water. In most cases, cold water cleans clothing just as well as warm water. Cold water washing results in the biggest energy savings, but even switching temperature settings from hot to warm can cut the energy used to heat a machine load of water in half. Learn more about the benefits of washing in cold water and other energy-saving laundry tips.

Set your water heater's maximum temperature to 120°F

You can reduce your water heating costs by simply lowering the thermostat setting on your water heater. For each 10°F reduction in water temperature, you can save between 3–5% in energy costs. The recommended temperature for optimal savings is 120°F. Reducing your water temperature also slows mineral buildup and corrosion in your water heater and pipes; this helps your water heater last longer and operate at maximum efficiency.

Check out more water heating tips from EnergySavers.gov.

Safety Concerns: Water heaters set at 140°F pose risks of scalding and burns, especially for children. Lowering the temperature can, however, create more risk for Legionnaires Disease. Search online for details if this is a concern.

Install an insulating wrap on your hot water heater

You can save 4–9% in water heating costs by wrapping your hot water heater with an inexpensive insulating wrap. Take this step if your hot water heater is old, warm to the touch, has an R-value on the label less than 24, or is located in an unconditioned space (unfinished attic, unheated basement, garage, etc.). Check out these instructions for insulating your hot water heater, or watch this instructional video.

NOTE: the installation steps are slightly different for an electric or gas water heater.

Insulate your hot water pipes

Insulating hot water pipes, especially those in unconditioned spaces, such as a basement, reduces heat loss and can raise delivered water temperature by 2–4°F; this allows for a lower water temperature setting. You’ll also conserve water because you won't have to wait as long for hot water when you turn on a faucet or showerhead. This is an easy do-it-yourself project, and the materials you need are available at your local hardware store. Check out these instructions for hot water pipe insulation or this instructional video.

Install a timer on your pre-1998 electric hot water heater

Putting an inexpensive timer on your electric hot water heater so it shuts down when you are asleep or at work and starts up again about an hour before you wake or return can save energy and money. The savings will be more significant if your hot water heater was made before 1998 or if you do not want to insulate your heater or hot water pipes. Learn more about how to install a water heater timer.