Install an Electric Water Heater

The only reason not to replace your worn water heater with an electric one is upfront cost. Electric water heaters start paying for themselves as soon as you start using them as no energy is wasted keeping water hot.

One Project Closer has a great tutorial for replacing your old water heater with an electric version. With the correct tools it isn't that difficult of a job and you'll save a few hundred dollars by doing it yourself.