2. Install a tankless water heater.

Demand-type water heaters (tankless or instantaneous) provide hot water only as it is needed. They don't produce the standby energy losses associated with traditional storage water heaters, which will save on energy costs. Tankless water heaters heat water directly without the use of a storage tank. When a hot water tap is turned on, cold water travels through a pipe into the unit. A gas burner or an electric element heats the water. As a result, demand water heaters deliver a constant supply of hot water. You don't need to wait for a storage tank to fill up with enough hot water.

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