Lowering the thermostat setting on a hot water heater to 120 degrees fahrenheit (F) will save energy, but see the important discussion of pros/cons in Questions and answers about energy efficient home water heaters. Also, contact your electric utility company to see it they offer time-of-day metering for electric hot water heaters. This metering puts the water heating on a timer, set to times when electricity demand is low, and offers a lower rate for electricty use during this time. Most users can shift chores (e.g. dishwashing) to these off-hours.
