Did you know that hot water heaters are responsible for a relatively large portion of your monthly utility bills, accounting for up to 25% of your average monthly bill? That equates to a lot of money spent unnecessarily. Fortunately, there are ways to curb this energy drain.

While a lot of hot water heater manufacturers will recommend setting your water heater to 140°F (particularly if you have a dishwasher), we suggest you turn it down a few degrees. Not only can temperatures that high scald an unsuspecting person, but it can also dramatically impact your energy bills.

By simply lowering the temperature on your hot water heater you can considerably cut water-heating costs. In fact, you can save around 3% – 5% in energy costs for every 10° reduction in your hot water heater temperature. Try adjusting your temperature from 140°F to 120°F and while you won’t sacrifice comfort, you will see a noticeable savings on your next energy bill. Not to mention, by lowering the temperature on your hot water heater it slows down mineral buildup and corrosion in your hot water heater and pipes. This helps extend the life of your hot water heater and allows it operate at maximum efficiency.

Before adjusting any thermostat setting on your hot water heater however, be sure to consult your owner’s manual for instructions on operating the thermostat and where to find the dial. As a safety precaution always shut off the electricity to the hot water heater before opening or removing the panels.

For even more energy savings, significantly turn down the water temperature of your hot water heater or turn it off completely if you’ll be out of town for three days or more. Finally, whenever possible use cold water instead of hot in order to save money on heating water. These few simple tips can add up to great savings over time that can put a little extra spending money back in your wallet.