Water Heaters

Heating water accounts for approximately 17% of the average family's yearly energy usage, reports the US Department of Energy. Therefore, finding the most efficient way of heating your home's water is an important quest.

Excitingly, Energy Star has recently set standards for rating water heaters. And starting in 2009, you'll be able to find a few Energy Star certified water heaters. You can read a little more on this development here or here. For now, however, you'll have to do the research on your own.

Currently, you have two categories of water heaters to consider for energy efficiency:

Tankless: Also known as "on-demand" water heaters, they produce hot water near the location you'll need it (under the sink, under the shower, etc.) You save energy by not having a huge tank of hot water just sitting there day and night, week after week. Currently, only available for homes with natural gas available, though electric options are coming within a few years. Read about them at www.tanklesswaterheaterguide.com.

Solar: Better for the environment than tankless systems because it uses no energy from the "grid" (whether electricity or natural gas), relying instead on the sun's power. Still uses large storage tanks though, but this inefficiency is nullified by the renewability of the solar energy. Read about them at EERE Consumer's Guide.

If you can't afford a major system change in your home right now, at least make sure that your current storage tank is insulated. Newer tanks are typically already insulated, but older tanks, those that are warm to the touch, should be wrapped in an insulating blanket immediately. A cheap and easy fix with a fast energy pay-off.