What you can do:

1. Reduce the amount of hot water you use:
   a) Replace regular showerheads with water saving "low flow" showerheads; shorten the time for showering.
   b) Wash clothes in cold water unless they require warm water washing
   c) Fill the sink basin with warm water when shaving or washing your hands instead of letting hot water run while shaving or washing.
2. Reduce the temperature on the hot water heater to 120ºF.
3. Insulate the hot water pipes in basements, especially if the basements are unheated. Insulating your hot water pipes reduces heat loss and can raise water temperature 2ºF to 4ºF hotter than uninsulated pipes can deliver, allowing for a lower water temperature setting on the hot water heater.

Savings:

1. Replacing showerheads with low flow showerheads can save 3% to 6% on your hot water bills. The average household spends between $250/year (for natural gas water heaters) and $400/year (for electric water heaters) on hot water, so a household could save between $7 and $24/year. Showerheads cost about $5-$10.
2. For each 10ºF reduction in water temperature, you can save between 3%­5% in energy costs.
3. Insulating hot water pipes can save $15-$20/year