Energy saving techniques - The hot water heater

By lowering the thermostat setting on your hot water heater, you can reduce its energy consumption. For every 10 degree reduction in water temperature, you can save approximately 3% - 5% in energy costs. Generally, hot water heater manufacturers will set the thermostat to 140 degrees Fahrenheit, however 120 degrees is optimum for most households and any higher than that can sometimes present a scalding hazard.

You should consult the user's manual for how to adjust your thermostat. Generally there is a dial that you can turn to either lower or raise the temperature. It may help to mark how the dial is currently positioned and then to adjust and test with a thermometer at your faucet until you get a desired temperature. In addition to adjusting the temperature, you can also save energy by turning the hot water heater to the lowest set point, or by completely turning the device off if you are going to be away from home for an extended period of time - after all there is no need to keep the water hot if you aren't going to be home to use it. Finally, adding an additional layer of insulation around the tank can help keep your water warm and in the end, less energy will be required to maintain the set point.