Lower the Thermostat
Don't set the temperature of your water heater any higher than
necessary. If you have a dishwasher, 140° is high enough. If
not, 120° is plenty. Turn down water heater when away from
home for a weekend.
Drain Sediment from Water Heater
Once or twice a year, drain a bucket of water out of the bottom
of the heater tank. This will let out any sediment that has
collected there. The sediment insulates the water in the tank from
the burner's flame and that wastes energy.