9. Tankless Heater
If your water heater is old, maybe you need to replace it with a tankless water heater. Many hotels already use them. They are also used extensively in Europe. Ask around, as you need to ensure that the flow is adequate for your needs. Usually, 1.5-2.0 gal/min flow should ensure hot water for two faucets.
They have come a long way from the little heaters used fifty years ago, so it pays to check them out. Also in the last ten years, many major manufacturers have started to offer them.
Put a leaf on the tree if you buy or already have a tankless water heater.
A typical household, tankless water heater costs $250 - $1250 plus labor charges for installation.
Savings can be as much as 60% on water heating costs. Much depends on your lifestyle. If you shower at the gym most days and only have a shower at home a few days a week, and there’s another heater for washing dishes and clothes, then a tankless heater may give you significant savings. If you have a single water heater and constantly use hot water because you are in the home all day, have children who cleanse frequently and you have plenty of washing, then the savings may not be as great.
Another advantage of tankless heaters is that they save space. New regulations mean that the clearance above your old water heater may need to be greater now than when it was originally installed. This may mean that space that could take a 40 gallon cylinder, can now only take a 30 gallon cylinder that may be too small for your needs, but a tankless water heater could easily fit in the space.
Another advantage is that a tankless heater runs hot water for a long time without the tank running dry (but take care to save water!).
The disadvantage of a tankless heater is that the flow pressure may be low and it may be harder to find an experienced installer.