Water heating is the third largest energy expense in your home. It typically accounts for about 13%–17% of your utility bill.
There are several ways to cut your water and water heating: bills:
Lower the thermostat on your water heater to 120 degrees F (130 degrees if you have a dishwasher that doesn't have a temperature booster).
Installing water heater insulating "jackets" of R-11 or higher can be cost effective in reducing standby losses on storage-type units, especially older or poorly insulated ones.
If your hot water tank is older than 12 years, consider replacing it with an energy efficient model.
Consider solar hot water,natural gas on-demand or tankless water heaters. Researchers have found savings can be up to 30% compared with a standard natural gas storage tank water heater.