Turning Down Your Water Heater

While many conventional water heaters are set to 140 degrees F by installers, most households don't need that much steam, and end up paying for it -- in dollars and the occasional scalding burn. Lowering the temperature to 120 degrees F (or lower) would reduce your water heating costs by 6% to 10%.

If you start to wonder why you need a tank at all, then you may be ready for a tankless water heater, or to go solar. If you are in the market for a new water heater, take advantage of the federal tax credit, which pays 30% of the cost for solar water heaters, or up to $1,500 for conventional systems.