Go Tankless With Your Water Heater
Tankless water heaters are two to three times more expensive than a conventional water heater, but there are federal, state and local tax breaks and rebates to help offset the costs. Plus, you can cut your water bill by 20 percent to 60 percent.
How does it work? Unlike a traditional tank that heats a supply of water 24/7, a tankless heater only heats when you turn on the hot water faucet. Cold water zips through the tankless unit, and a gas burner quickly heats it to the preset temperature.