Choosing a tankless water heater

Again, they're energy-efficient but expensive to buy and install compared with regular water heaters. Consumer Reports found tankless models cost $800 to $1,150, compared with $300 to $480 for the regular storage-tank types, while installation averaged $1,200, compared with $300 for storage-tank models.

Given that the tankless models save around $70 to $80 a year, the break-even period can be as long as 22 years -- longer than the expected lifespan of many models, Consumer Reports says.

There are plenty of cheaper ways to save on water-related energy costs, including:

• Insulating blankets for your tank water heater.
• Taking shorter showers and washing clothes in cold water.
• Installing low-flow shower heads.