When you price new water heaters, keep in mind that gas water heaters cost more than electric water heaters, but they are cheaper to run. Tankless water heaters also cost more than the traditional tank-style heaters, but they use less energy by heating your water on demand instead of keeping it hot for you 24/7.
If you have a tank-style water heater and want to save money on your energy bills, we recommend you wrap your water heater in insulation. This helps keep the water warmer for longer. Most home improvement stores sell insulation blankets for water heaters so that you don’t have to buy an entire roll of insulation and cut it down to size yourself.