No. of Recommendations: 2
If I were to do anything beyond a normal tank type water heater, the first thing I would do is look at a heat pump water heater.

I made the switch to a heat pump unit a couple years back. I'm still thrilled with mine. Over 3x the efficiency of a conventional electric heater, and the cool "waste" air from the heat pump practically air conditions my garage. My power bill is also $25-30/month lower.
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