Many water heaters are set hotter than most households need. Lowering the setting slightly can reduce the energy used to keep the tank warm and lower the risk of scalding, which matters in homes with young children or older adults.

Check the label or owner's manual for your model before making changes, and adjust in small steps. Some households need a higher setting, for example if someone has a weakened immune system or the dishwasher lacks its own heater, so ask a plumber or your health care provider if you're unsure what's right for your home.

Using less hot water helps too. Washing most clothes in cold water, fixing dripping hot water taps and installing a low-flow showerhead can all reduce demand. If your tank feels warm to the touch and sits in an unheated space, an insulating blanket designed for water heaters may help, but follow the manufacturer's instructions carefully, especially for gas models.