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Builders and energy analysts in the Building America program have found that to obtain energy savings of 40%-50%, they have to reduce the energy used for domestic water heating (DWH). At energy savings levels below 40%, energy-saving measures have been focused on envelope and HVAC improvements, making water heating a more significant piece of the remaining energy pie. Technologies of highest interest to date for reducing DWH energy include innovative and less-wasteful distribution systems, "on-demand"/tankless gas water heaters, and solar domestic water heaters (SDWH).

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