With winter in full force here in Chicago, I am looking for ways to reduce the size of my gas bill. A quick and easy solution to reduce my natural gas consumption is to make two simple changes to my water heater: lower the thermostat set point and install a water heater blanket.

Lowering the thermostat set point is a simple change that will take you 30 seconds or less. Typically you can set the temperature on a water heater between 120 and 180 degrees. The lower you keep the temperature, the less energy the water heater uses to heat the water in the tank and maintain it at that temperature. My water heater doesn’t have a dial that tells me exactly what temperature I am setting it at instead it just has a bunch of equally spaced lines with one end of the dial labeled HOT and the other end labeled VACATION. So I do a little trial and error test. I stick my hand under the faucet running only hot water. If the water is too hot for me to keep my hand there then I turn the thermostat down a little bit. I then wait a day or so and repeat the test gradually turning the thermostat down a little at a time until the temperature of the water coming out of the faucet is the hottest I’ll ever want it. After all, there is no sense paying to heat your water up to a scalding heat all day if you are just going to have to mix it with cold water to cool it down when taking a shower. If you turn the temperature down too much, then just slowly turn it back up a little at a time.

Installing a hot water heater blanket will cost you about $25 and may take you 30 minutes or so to install. Water heaters are basically insulated tanks where the water inside is heated up to the set temperature and then sits there ready to be used, losing its heat slowly and continuously. When the water cools off too much inside, the water heater’s burner turns on and heats the water back up. A hot water heater blanket will simply add another layer of insulation around your water heater helping to keep minimize the energy loss. It is said that most water heater blankets can pay for themselves through their energy savings in about a year. You can buy a hot water heater blanket at almost any major hardware store (Menard’s, Home Depot, Lowes, etc). Be sure to follow all of the manufacturer’s instructions when installing a water heater blanket.

And now for the bonus tip which will allow you to save even more, but may only be for the strong-willed. Simply reduce how much hot water you use. Take shorter showers, install low flow water faucets, consolidate loads of laundry, and wash your clothes in cold water.

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Keywords: water heater, natural gas, bill, blanket, thermostat, temperature, nicor, savings, insulation