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even if it does retain most of it's heat there is no reason that it needs to come on after you used your hot water for the day, it would be like turning your tea kettle back on after you pour your tea, if you did that, even with a well insulated tea kettle people would say you were kind of dumb, so why have your water heater automatically come on after you've taken a shower and gone to work?
I have yet to hear of someone that hasn't seen a noticeable drop in there electric bill after installing a timer.
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