Every once in a while, it is a good idea to observe the temperature on your water heater. When there are not many people in the house, there is no need to have temperature very high since there is not much hot water being used. The average water heater temperature stands at 120 degrees Fahrenheit. (Don’t worry, the water reduces in temperature as it makes its way through the pipes, so it’s not that hot when it comes out of your shower head.) By reducing the temperature by 10-15 degrees, you might be able to take advantage of three to five percent bill reduction.