From warm showers to clean dishes, we count on hot water. In fact, the average household spends $400 to $600 per year on water heating – making it the second largest energy expenditure behind heating and cooling.

Most Americans have conventional water heaters that are barely more efficient than ones sold 20 years ago. Today's new water heaters include smart design enhancements that offer significant improvements in efficiency – and performance. Depending on the technology you choose, you can potentially cut your water heating costs in half: