Save that Hot Water
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A five-minute shower using a flow restrictor in the showerhead uses less hot water (and thus, less energy) than a bath.
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To save energy, don't set your water heater above 120° F.
Check the System
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One of the easiest ways to save energy is by wrapping an insulation blanket around your water heater. They're easy to install and can cut electricity by as much as 10%. Before installing an insulation blanket, be sure to read all the manufacturer’s directions. Many tanks are already insulated and don't require additional insulation. You can also insulate the hot water line leading away from your water heater.
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Flushing two to three gallons of water from your electric water heater annually will extend the life of the unit and provide greater efficiency.
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If your water heater has overhead pipes, heat may move through the water lines when hot water is not in use. This wastes energy, since the heater has make up for this heat loss. Install a heat trap—a loop or a U-shaped kink in the pipe—near your water heater.
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Fix leaks! A leaking hot water faucet wastes electricity, since your water heater has to run continuously to heat the water that's leaking.
Give it a Break
Newer water heaters have a vacation setting that stops heating the water when you will be away for a period of time. If your heater has this feature, be sure to add "adjust water heater" to your pre-vacation to-do list!