This video provides step-by-step instruction on how to successfully lower the temperature of your water heater, saving you energy and money.
Although some manufacturers set water heater thermostats at 140ºF, most households usually only require them to be set at 120ºF, which also slows mineral buildup and corrosion in your water heater and pipes. Water heated at 140ºF also poses a safety hazard—scalding.
Savings resulting from turning down your water heater temperature are based on two components: reduced standby losses (heat lost from water heater into surrounding basement area); and consumption (from water demand or use in your home). Set too high, or at 140ºF, your water heater can waste anywhere from $36 to $61 annually in standby heat losses and more than $400 in demand losses.
If you have a dishwasher without a booster heater, it may require a water temperature within a range of 130ºF to 140ºF for optimum cleaning. And while there is a very slight risk of promoting legionellae bacteria when hot water tanks are maintained at 120ºF, this level is still considered safe for the majority of the population. If you have a suppressed immune system or chronic respiratory disease, you may consider keeping your hot water tank at 140ºF. However, this high temperature significantly increases the risk of scalding. To minimize this risk, you can install mixing valves or other temperature-regulating devices on any taps used for washing or bathing.
Source: Save Energy at Home, ENERGY STAR