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" ... Water heating accounts for approximately 20 to 30 percent of household energy demand. Much of the energy is expended warming the water coming into the shower and other areas of the house. By transferring some of the heat from the drain water to the incoming water through a heat exchanger, reduced energy is required. A significant portion of the heat from the drainwater is efficiently transferred to the incoming water with no energy use. By reducing the demand on the water heater, this also allows for increased capacity of the tank. ... "