Fix plumbing leaks. Even a modest drip from a hot-water faucet can waste thousands of gallons of hot water per year. Fix leaks right away.
Insulate the storage water heater. Insulating a hot water tank can significantly reduce its standby heat loss. Insulating an electric water heater is easier than insulating a gas water heater, because venting of the electric model is not required. Separate tanks used for indirect water heating (in which a zone off a boiler used for space heating circulates through a heat exchanger in a separate tank) should also be well-insulated.
Insulate hot water pipes. Water sitting in insulated hot water pipes between uses will not cool as quickly, so hot water use will be reduced some of the time.
Install heat traps. Heat traps are one-way valves or piping loops that reduce the thermosiphoning of hot water within hot water delivery pipes. Some water heaters may incorporate heat traps; if not, the heat traps can be added at the time a water heater is installed.