I am looking to downsize my electric water heater due to the rates in CT being mind boggling. I currently have an 80 gallon electric heater that I am renting (don't ask, house came with it a few years back). I want to get rid of that $10/month rental payment and lower my electric bill so I am going to downsize likely to a 50 gallon hybrid water heater, which has a very good rebate as well. I think along with changing out a few higher gpm fixtures I probably can make the 50 gallon work. However, I have been finding some in a similar situation have been using a heat exchanger on their cold water line to up the temp on the water entering the water heater and increase the amount of recovery and reducing the cost of operation. I have seen a few videos on people doing heat exchanger setups on their stove pipe, but not very much many and all in Canada. I don't recall anything in the US. Is anyone here doing anything like this currently? I am interested in the cost, code and payback surrounding it. It just seems like common sense to try and use the heat going up the chimney.