Save 50 Percent on Oil Hot Water Heater Costs

Recently, I just completed a project where I can potentially cut my hot water heater bill in half!  As a side note, my oil fired hot water bill was over a hundred dollars a month when oil prices were over $4 a gallon, so I have a lot to save. What I did was:

  • Turned down my heat settings
  • Had maintenance performed on the heater
  • Used an insulating blanket
  • Installed a temper tank – this allows the incoming water to warm up to something on the order of 70 deg F rather than 40 deg F. I also utilized waste heat from my hot water heater exhaust with a hot air blower system hooked up to a thermostat.

Go to Save Hot Water Heater Costs for more details on what I did. Watch the video below!

2 Responses to “Save 50 Percent on Oil Hot Water Heater Costs”

  • Bill Collins:

    I love it, but have questions. I’m about to purchase a new water heater and want to temper my water as well. #1. How does the air your blowing into the old tank escape? Just by circulation? Do you really need the thermostat and fan, or do you think warm air would go down and back up when the new heater is running? #2. What else did you do to the old tank? Are you concerned about the old deposits in it currently and/or any more that may develop w/ so much water being held in reserve?

  • Mike:

    The air escapes out the bottom of the shell surrounding the temper tank. I think without the fan, not a lot of heat would go down. In retrospect, a nice addition to this system would be to run copper water line along the exhaust stove pipe as well since water is generally drawn in as the hot water heater is running. I plan to make this improvement down the line. I did clean out my temper tank pretty good before installing it to remove deposits. With what I saw, I will never drink hot water out of a tap again!

    I don’t think this system would be worth the effort for anything other than an oil hot water heater, although a temper tank would be helpful for most any system, particularly if the temper tank could be kept at a fairly decent temperature. My objective here was to make use of the great amount of waste heat coming off my hot water heater exhaust flue.