Saving energy at home do not always mean compromising the luxury to have instant hot water when you need it. There are ways to make you save energy with your inline water heater without having to replace it. A few additions to your set-up may just do the trick. In this way, you save cost and you save energy consumption which is best for the environment.
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Here are a few energy saving tips:
Insulate water pipes - Doing this reduces the demand of energy by 2 F to 4 F. It is also relatively easy to do because you only have to insulate 5-10 meters of the pipe from the shower head of the faucet. Why it works? Because the longer the water stays hot while moving through the pipes, the less energy you need to warm it. These insulators are also pretty easy to find in hardware stores.
Reduce Usage of Hot Water - The most basic thing to do to reduce the usage of warm water is to make sure there are no leaks in either the tank itself or the faucet. If the tank is leaking or water heating is leaking, it is best to replace it. However if it's only the faucet or shower head, you can still repair it. Apart from making sure everything is working perfectly, it is also best to use low flow shower heads or faucets. The maximum you should install for a shower fixture will be approximately 2 Gallons per Minute while faucets in the kitchen or lavatory can have approximately 1 Gallon per Minute of flow rate.
Using detachable shower heads - This is efficient in bathing babies because you need not waste hot water in a gush of water streams continuously. Some even have a switch on the product itself to turn it off and on for a more portable and easier use.