Time for a test:
Go give your hot water tank a friendly pat. (We'll wait.) If it feels warm when you touch it, heat may be escaping through the walls of the tank and inflating your energy bill.
Insulating jackets for water heaters are easy to install and widely available at home improvement stores. It will probably only set you back around $10 to $20 (don't let it wear one of yours). An insulating jacket or blanket may sound snuggly, but it's more akin to wrapping your water tank with a layer of bubble wrap (or fiberglass) encased in foil, like a steely burrito. They pay for themselves in about a year. Plus, they can cut standby heat loss by up to 45 percent, boosting water heater efficiency and potentially saving you 4 to 9 percent on water heating bills.
When fitting your water heater with an insulating jacket, make sure to follow the directions that came with it. Be careful not to cover the thermostat, and if you have a gas water heater, do not cover the water heater's top, bottom, or burner compartment.
1. Keep it legal: Read the manufacturer's instructions that came with your water heater to make sure that insulating that type of water heater isn't prohibited (or call the manufacturer, if you can't find the instructions).
2. Measure your water heater so you can get the right size jacket or blanket insulation. Jackets may list a size in gallons ("fits water heaters up to 50 gallons") as well as inches and feet.
3. Go to a home improvement store or shop online to get the insulation you need.
4. Whoa there, partner: Before you install the insulation, read the manufacturer's warnings and instructions that came with the insulation you purchased.
5. Measure and cut the insulation according to the manufacturer's instructions, wrap the water heater with the insulation, and tape the insulation in place. Important: If you have a gas water heater, make sure to keep the insulation away from the air intake and burner area. You may want to have a qualified contractor add the insulation to a gas water heater because the process can be tricky compared to adding insulation to an electric water heater. (Just sayin'.)
Set the water heater to 130 degrees or lower. Make sure to
turn down your water heater's thermostat to 130 degrees Fahrenheit or lower. If you set it at a higher temperature, the wiring could overheat. And nothing ends a party faster than overheated wiring.
Don't insulate a leaky tank. Repair or replace a leaky tank, rather than putting insulation over the leaks.
Have a tankless water heater? You're all set—you do not need to insulate it.