If you’d like to cut back even further, consider looking into a tankless water heater also known as demand water heater or instantaneous water heater.  Pricier than a standard water heater, a tankless heater will save you money in the long run.   Purchasing an eligible model of a tankless water heater might even get you a federal tax credit.  Standard water heaters hold anywhere from forty to eighty gallons of heated water at any given time.  Therefore, heating water in the home tends to be one of the biggest contributors to a high-energy bill.  The alternative tankless water heater provides heated water only when needed.  Think of it like made to order.  The water isn’t heated until the demand for the heater water has been received.   This energy efficient appliance works very simply.  Once the device is installed, you turn on the hot water tap and the appliance immediately heats up the cold water, which travels through pipes into the appliance and then into the tap.  It works the same in the shower.  And the best part is it will heat water as long as you like, so your shower will not turn cold out of nowhere.   According to the U.S. Department of Energy, the tankless water heater is most effective for homes using less than forty gallons of water daily, saving twenty four to thirty four percent more energy than a standard water heater.  Energy savings can sky rocket to fifty percent with a tankless water heater at all of the hot water outlets in a household.

Another option for cutting water-heating costs is solar water heaters, which are extremely reliable and work in any climate.  A flexible device, there are a variety of solar water heaters that can run exclusively or be paired other water heater systems as a pre-heater.  Some have pumps and some work passively.  In order to have one, a storage tank and a solar collector are required.  Solar water heaters are available at affordable costs ranging from fifteen hundred dollars to thirty five hundred dollars, often paying for themselves in four to eight years.

Energy Monitors

A practical tool is available on the market now, capable of making you aware of the amount of energy you are using in your home at any given time.  This device, called an Energy Monitor, calculates electrical use in the home in real time and makes monthly projections of how much the energy bill will cost.  When the consumer becomes aware of how much they are spending, they are more likely to cut back and save energy and money on the bill.  It’s easy to turn on the heat and leave it running.  As soon as you see how much that doing so will cost you, you are much more likely to use it only when necessary.

Alternatives to Turning Up the Heat

Instead of leaving the heat on all night while you sleep, wear warm clothes to bed and use an extra blanket.  It’s fun and cozy to get snuggled up in bed when it’s cold outside.  Wear warm socks around the house and dress warm when you are home during the day.  You’ll save money by not always having to turn on the heat.

Another alternative to using the heater is to purchase a heating pad.  Heating pads are good for a sore back and for a cold home.   Putting one against your back while you sit on the sofa will warm you up instantly.  Even putting one in your bed will help make it that much more toasty.  Most heating pads turn off automatically so you don’t have to worry about leaving it on all night either.

Boost Insulation

Consider boosting insulation to warm up your house.   Insulation isn’t the most attractive way to save energy but it is a highly effective method for saving money and energy.  Adding insulation between walls, and making sure your attic floor and basement ceiling are well covered will make a big difference in your energy bill.  You can also pay less for heated water by insulating your pipes, which also decreases the odds of pipes freezing.   Your pipes are insulation ready if they are warm to the touch.  Pre-slit pipe foam is available for purchase at hardware stores.  What you want to do is cut the foam to the size of your pipe and secures the foam in place over the pipe with duct tape.  The ideal situation here is to choose the highest R-value practical, which indicates its heat blocking power.   Pipe insulation is usually R-3.