You can lower your water heating costs by using and wasting less hot water in your home. To reduce usage of hot water, you can fix leaks, install low-flow fixtures, and purchase energy-efficient appliances.
You can considerably reduce hot water use by simply repairing leaks in fixtures—faucets, showerheads and pipes. A leak of one drip per second can cost $1 per month.
Install Low-Flow Fixtures
Federal regulations mandate that new showerhead flow rates can't exceed more than 2.5 gallons per minute (gpm) at a water pressure of 80 pounds per square inch (psi). New faucet flow rates can't exceed 2.5 gpm at 80 psi or 2.2 gpm at 60 psi. You can purchase some quality, low-flow fixtures for around $10 to $20 a piece and achieve water savings of 25%–60%.
Purchase Energy-Efficient Appliances
The biggest cost of washing dishes and clothes comes from the energy required to heat the water. You'll significantly reduce your energy costs if you purchase and use an energy-efficient dishwasher and clothes washer. If you want to ensure that your new appliance is energy efficient, purchase one with an ENERGY STAR label.