TIPS FOR SAVING MONEY ON YOUR HOT-WATER BILLS

When the days grow nippy, nothing beats a long, hot shower to warm things up. But at what expense? The Department of Energy says water heating accounts for 14% to 25% of the energy consumed in your home. Here are tips from the department for reducing your water heating bills:

• Set the thermostat on your water heater to 120° F. If you lower it by just 10ºF, you'll save 3% to 5%. For most homes, 120 ºF, or even 115 ºF, is sufficient.
• Consider getting a more efficient water heater for your home. Natural-gas-on-demand or tankless water heaters can save you up to 30% compared with standard natural-gas storage tank water heaters. Or, just buy a new energy-efficient water heater. It costs more up front, but you'll save over time.
  
• If you buy a solar water heater, you might be eligible for a tax credit or rebate. Look for details in the Database of State Incentives for Renewable Energy at www.dsireusa.org.
  Drain a quart of water from your tank every three months. You'll remove the sediment that lowers the efficiency of your water heater.
  
• Place heat traps on the hot and cold pipes connecting to your heater -- you'll prevent heat loss.
  
• Insulate your hot water pipes -- doing so can raise water temperature 2ºF-4ºF.

-- November 16, 2006

By Marshall Loeb
The Wall Street Journal Online