If you aren't quite ready to trade up your old storage hot water heater for a high-efficiency tankless system, then at least give a thought to some added insulation.
Hot water accounts for 13% of the typical utility bill, so improving the efficiency of your heater can go a long way toward saving energy and cutting down on carbon emissions.
Consider wrapping your old heater in a layer of insulation. For the nominal cost of about $15, an insulating jacket can reduce heat lost through the walls of the tank by 25-40%.
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