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Insulate water heater
From TipThePlanet
Water heaters radiate heat which can be easily contained by insulation. You can purchase a water heater 'blanket' for about $20 at hardware stores, or insulate the water heater yourself using faced fiberglass insulation and duct tape. Be sure not to cover any vents. This simple technique will also greatly increase the efficiency of your water heater, resulting in lower energy bills.
