Electric Temperature Controls
If you have an electric heater, you can install a device that allows the water heater to shut down operation while no one is home or everyone is asleep. This will reduce heat loss. Your utility company or a plumber can help you install this device.
Heat Traps
Several heat traps may be installed on the water lines in the house. Ball valves may be installed on the cold and hot lines directly above the water heater. These valves will physically block heat inside the pipes and tank from escaping up and out of the water heater. The ball valves do cause some slight flow restriction though that may be noticable during high volumes of water use. Another way to create a heat trap is to take your flex connectors at the top of the water heater and bend them into an inverted U shape if at all possible. Heat cannot travel past the top of the U.
Low-Flow Showerheads
Attaching these to your showerhead simply uses less water and in turn less heat. It's as simple as that. Low-flow aerators can be attached to sink faucets as well. A very effective way to save energy and money.
Pipe Insulation
Insulating the hot lines will save heat as well. Closed-cell foam can be wrapped around the pipes and makes the job go very quickly. Insulation blankets can be used also. Get thicker blankets rather than thinner ones. Different types of pipe require different size insulation too.
Copper and galvanized pipes have different thicknesses even though they both say 1 inch. Don't forget to wrap the cold pipes three inches away from the water heater too. Do not, however, cover unions or fittings and ends of pipes with insulation. Any leaks will be more severe if insulation is covering these spots. Never cover the draft diverter directly above gas water heaters. This could cause the insulation to catch on fire. Different insulations come with different self-adhesives. It does not matter much which type you use. If you need to tape the insulation though, use gas wrap tape, which looks like electrical tape with writing on it. Avoid using duct tape since it will wear out faster. Use scissors to cut the tape and insulation if necessary. Finally, plastic ties are another way of holding insulation to pipes as well.
Recirculating Systems
Recirculating loops can be installed by any water heater manufacturer. These are very efficient but expensive to install.
Vent Dampers
For gas heaters only, a vent damper is a metal flap just above the heater. Either a motor or actual heat is used to open the vent flap. The vent will never be all the way shut at any time just in case of unexpected heat going up the draft diverter. It is unknown how effective these devices are, but they seem to work better for indoor water heaters.
Water Heater Blankets
This idea is best used for water heaters that are outdoors or in naturally warm rooms. Purchase insulation that has a ranking of at least R-11. The energy saved will be substantial compared with lighter insulation such as R-6. Wrap the entire water heater around and cut holes for all the fittings such as the T&P valve, cold lines if any gas burner housing on gas water heaters or electrical elements on electrical water heaters. Note that leaks on the water heater will be difficult to see if the water heater is covered in a blanket and rusting is more of a problem. However, the energy savings from this idea make it worth the risk. Periodically check for wetness underneath the blanket after installing it.
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