Or... they could get a tankless water heater.
No standby heat loss (i.e. the kind you're reducing - but not eliminating - by turning your water heater off at night) AND no lukewarm water hanging around to grow nasty things, so it's a win-win.
However, it creates another problem: while the total energy used is less, tankless heaters are more "peaky", using high power over short durations instead of low power all day. This can create problems for a utility trying to control demand, whether electricity or natural gas... though it probably wouldn't be much worse than what you do, heating up your whole hot water tank from cold at some of the higher-demand times of day.
I was under the impression that some of the higher demand times were during normal business hours, when busineses are using large amounts of electricity for computers and other machinery. This is the time when i suggested most water heaters would be turned off, at least during warmer months in the northern u.s.
I now live in the southern u.s. so my water heater is hardly ever on. I only use it to wash dishes like 3 times a week or the rare times it is predicted to be very cold. But now that you mentioned the risk for legionnaires i will probably invest in a tankless water heater, even though i have the filltration system in effect. I was thinking about going solar but i will have to explore the situation and i would appreciate any suggestions as water heaters are not my area of expertise.
Ultimately my point was there are other things people in the northern u.s. could do to offset the extra energy use, that they dont usually do. But im glad i brought up water heaters because your posts will make me do more research.