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[steven r]

Automating my gas water heater
Why Bother.  With the insulation of the newer heaters the loss are minimal.  You can easily add an external insulation blanket designed for water heaters.  If you keep changing the setting, you probably will suffer a premature valve failure costing you far more then you saved.  It is not a good idea to shut the heater off completely as it cools water will condense on the outside tank and heating area causing it to corrode.  At least leave the pilot light on as the manufacturer recommends.  The best setting is the lowest that you can comfortably live with.  Typically, the cooler the tank the longer the life....

Pretty much what I've decided to do. Thanks for your post.