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The way to make it more efficient is to install a timer so it only runs when people would be using water. About 15 minutes before the get up, off if everyone works, and then on again in the evening. The factor you do not mention is that the life of a water heater is dependent on the amount of water it heats over its lifetime, and the cirulation pump makes it operate more frequently and therefore reduces its lifetime.: Is a hot water recirculating pump an enery/water efficient purchase or a luxury purchase? Were heard that it pays for itself in 3 years. How can that be when youre paying for a pump to be running and when theres heat loss from pipes through which hot water is constantly being recirculated?