According
to US Department of Energy hot water heating is the second largest user of
energy in a home. It accounts for roughly 18% of your energy bill.
The hot water heater is centrally located to shorten lengths of pipe runs and reduce the amount of heat lost in transmission.
High efficiency dishwasher and clothes washer and low flow faucets and shower heads use between 40-60% less hot water than typical appliances and fixtures, reducing the demand for hot water.