Buy a new energy-efficient water heater. While it may cost more initially than a standard water heater, the energy savings will continue during the lifetime of the appliance. Look for the Energy Guide label.
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Consider installing a drain water waste heat recovery system. A recent DOE study showed energy savings of 25% to about 30% for water heating using such a system.
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Consider natural-gas on-demand or tankless water heaters. Researchers have found savings can be up to 30% compared with a standard natural-gas storage tank water heater.
