Consider installing a small water heater, or an instantaneous heater, at the point of use to decrease your distribution losses substantially. Instantaneous water heaters heat water as it is needed, using a gas burner or an electric element. The units can serve a single tap or as centralized heaters to replace conventional tank water heaters. Whether you should replace a conventional water heater with a tankless unit depends on the size and efficiency of the tank being replaced, the cost of energy used and the frequency and amount of hot water used. These heaters are more expensive to purchase.
Heat pump water heaters are more efficient than electric resistance units.
A heat pump water heater uses a third to half as much electricity as a conventional electric resistance water heater. While the efficiency is higher, so is the purchase cost. These simple heaters preheat water using the sun's heat. They are inexpensive to build, and plans are available for their construction. Hot Water Savings Fix any hot water leaks promptly.