In order to offset water heating costs consider installing the most current technology in water heater heat pump systems. These heat pump type units, which attach to your existing water heater, extract btu's (heat) out of the air in the room and transfer this heat to the water in the water heater. One model that is available to the consumer is called the AirTap™, which is manufactured by AirGenerate. The AirTap™ can potentially save $200 or $300 annually for gas or electric water heaters, respectively. Average savings are for a typical 4-person family. Depending on the cost of energy in your area and the amount of hot water you use, these savings can reach up to $500 or more every year.