Find Actions

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.

Install an Energy Star certified electric Heat Pump Water Heater

Water heaters are often the second highest energy user in the home. If your water heater is more than 10 years old, consider replacing it with a new ENERGY STAR certified Heat Pump Water Heater to save energy, save money, and help protect our climate. Investing in a planned replacement NOW can lock in big energy savings and help avoid a potential costly clean up when your old water heater fails. Heat pump water heaters come in both electric and gas models. While they may cost more to purchase, a heat pump water heater costs less to operate and can reduce your utility bills.

To see how heat pump water heaters work and how ENERGY STAR certified models can help you save on your utility bills, watch this short video:  "ENERGY STAR Water Heaters Mean BIG Savings!"

See this Energy Star Heat Pump Water Heater fact sheet (PDF, 228.13 KB) that explains the savings opportunity.

Washington Gas rebates and federal tax credits are available for Energy Star certified storage water heaters. For example, in 2016 the federal tax credit was $300.

Install a tankless hot water heater

Also known as a “demand” or “instantaneous” water heater, the tankless systems can conserve up to 34% of energy compared to a conventional hot water tank. Tankless hot water heaters and installation services are available at stores like Home Depot and Lowes. Learn more about tankless water heaters from EnergyStar.gov or check out these do-it-yourself instructions for installation. Washington Gas offers rebates to homeowners and contractors for natural gas tankless water heaters.