Do you heat hot water you don’t use? One of the simplest ways to save money is to lower the temperature of your hot water heater. If you have it set at 160 degrees, lower it to at least 140 and shoot for between 115 and 106 degrees, For showers and domestic needs, 105 – 110 degrees is as hot as you need. Beyond that you would scald yourself. Trying to conserve hot water by mixing it with cold water is not economical.
If you need 140 degree hot water for your dishwasher, turn your heater up just before dinner so the water will be hot when you need it. After your dishes are done, turn it back down. You don’t need 140 degree water for your morning shower and it’s a waste to have it sitting in your tank all day while you pay to keep it hot.
While you’re at it, don’t forget to put an insulation blanket around the water heater and drain the sediment every six months. A dirty heater is inefficient and more expensive to operate.