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Water heater

Use tank less water heaters:
In the past tank less water heaters were usually used as "point of use" heaters.  Point of use water heaters operate more efficiently than whole house water heaters since there is only a short distance between the heater and the fixture.  This eliminates the piping losses and reduces the hot water used each time a use occurs.  With a long pipe, when you finish using hot water you have also "used" all the hot water left to cool in the pipe.  You paid for the energy to heat that water.

Point of use installations uses smaller heaters since they don't have to supply more than one fixture at a time.  The smaller installations are much less expensive than whole house water heaters. 

Saving money with a whole house tank less water heater is much more difficult due to the higher cost of installation.  Typically whole house tank less heaters need substantially larger flues, and often they must be stainless steel. Chances are you will also need to have a larger than normal pipe. Even though they burn to heat the water, they have electronic controls, so in the event of a power outage you will not be able to get hot water...something to think about.