Invest in a demand water heater
A typical water heater continually heats water in a storage tank so that it is always available — similar to keeping your coffee pot warm all day. A demand water heater can be more efficient because it does not have a tank. Instead, it creates hot water "on demand," reducing the heat loss associated with a traditional water heater.
Good to know:
A demand water heater can be used in place of, or to supplement, a conventional water heater. It can be appropriate in small and large homes, but larger homes may need multiple demand water heaters.
What to look for: The ENERGY STAR® label to compare the energy demand of different models.
For larger families: If you have spikes in your water heating load, such as multiple simultaneous or consecutive showers, a single demand water heater may not keep up with your needs. Think about installing multiple demand water heaters throughout your home to address this challenge.