It seems that everyone is concerned with replacing their incandescent bulbs with the compact-fluorescents to save on energy costs, however the worst offender in utility costs is the WATER HEATER. It operates 24/7/365 and we're not talking about saving just a few watts (or BTUs) per evening :).
Consider replacing it with one that has AT LEAST 2 inches of insulation; or purchase an 'Insulating Blanket' for your present one (if older than 10 yrs, it may be wise to replace it). Be careful, most water heaters only have 1 inch insulation, so be thorough in your search. The better the insulation, the less heat-loss.
Another thing: do you really need the water heater temperature-dial setting to be set at the highest setting? Setting it at a lower temperature saves energy.
General comments: 1)I looked into the Tankless WH a few years ago, but found that the 'better' ones, and ones that would accommodate the quantity of typical whole household outlets, were in the $600-$1000 range. 2)And the timers method works if you never vary your life style (home sick, days off, taking a shower after mowing yard, etc., etc....) This is one reason I got rid of the programed HVAC T'stat and went back to the simple Honeywell model...seems like I was resetting the t'stat at least 4 times a week due to changing in living habits.. 3) And Yes, Harry I really didn't mean to imply that the WH never shut off it's heating mode....just that it 'cycles' 24/7/365 :) The better the insulation, the longer the water stays warm, and therefore the less the heating element is required.
Check out those new instant hot water heaters that have no tank. The water begins heating the minute you turn on the faucet. You never run out of hot water and never heat any until you need it and you don't have to wait for the water to get hot. It's instant.
Seems like several months back someone posted the idea of installing a timer on it like for lights when your away -- & they had it set to come on something like a couple hours before time to get up & it went off at their bedtime... does anyone else remember that post ???
I don't think the electric hot water heater operates 24/7. It cycles on and off to maintain a predetermined water temp which can be increased or decreased by the user. I plan on returning to a electric hot water heater as my hot water is heated by my oil furnace and will turn on several times a day during the summer. Heating oil here in the northeast is appoaching $5 per gallon. When I do convert to electric hot water I will lower the temp some what and also put on an insulating blanket.
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