Hot water is used by the average American home for washing dishes, showers and laundry. Water heating, which is after cooling and heating costs, has been the largest component of most families’ utility bills.

According to the U.S. Department of Energy water heaters account for 25 percent of homes’ energy consumption. Water heating efficiency can be improved to reduce utility bills.

The options for water heaters are now much more diverse than traditional electric and gas. Water heaters can come in many shapes and serve different purposes. Two types of heaters seem most efficient: tankless heaters and high-efficiency condensing heaters.

What should you consider when choosing a water heater? Consider how much hotwater you use. Are you using multiple hot water appliances at once? Do you and your family consume a lot of water each day?

Tankless water heaters work best in situations where there is a regular demand for hot water, such as apartments that only have one or two inhabitants or vacation homes. Overusing too many hot-water appliances simultaneously can cause tankless water heaters to overtax. To give an example, running both the clothes washer or the shower simultaneously could drain all the hot water from the tankless unit.

High-efficiency storage-type models are best for families that require large amounts of hot water.

“High-efficiency models were designed for the homeowner who needs more hot water and wants to save money on their water heating bill in the process,”David Chisholm, water heater brand manager for A. O. Smith (makers of the Vertex high-efficiency model), said this.

These are two ways Americans can save money on their water heating bills.

Reduce the water heater temperature. Most households can keep the water temperature at 120°F. Lowering the temperature by 10 degrees F will typically reduce water heating costs by between 3 and 5 percent.

If you’re on vacation, set your water heater at the lowest setting possible or turn it off. You must know how to turn on a gas water heater.

Visit this page for more information about water heaters www.hotwater.com.