Insulate Your Hot Water Heater

Becoming more energy efficient is a great way to help preserve the planet and save money at the same time. Insulating your hot water heater is one quick way to do just that. All you need is an insulation blanket and some duct tape.

Note: You should always follow the insulation manufacturer’s instructions for installing hot water heater blankets. General information follows; but should not be construed as installation instructions).

The installation method depends on whether you have an electric or gas heater. Electric heaters can be wrapped the whole way around and even on top. You should make cut-outs for heating elements and any information labels. (Obscure labels are unsafe and will void manufacturers’ warranties).

Insulating a gas heater is similar but with a few important differences. You should not insulate the top or bottom and should be careful to keep the thermostat and burner compartment clear.

How Much will I Save?

Insulating your hot water heater could save you between $3 - $5 per month, depending on the age of the heater and other factors. Most insulating blankets cost around $20, so your investment will be returned in no time.

Why is Extra Insulation Needed Anyway?

Insulation requires space. Since water heaters tend to be installed in closets and other space-limited environments, manufacturers must consider both the energy efficiency and space requirements of a design. While modern water heaters have relatively thin, high-quality insulation materials with high R-values, older models do not. As a rule of thumb, if your hot water heater is warm to the touch, you can benefit from additional insulation.

What If I Have a Tankless Water Heater?

This advice presumes you haven’t switched to a more modern, tankless water heating system. Tankless heaters heat water on-demand without maintaining a resevoir. As a result, there’s no need for extra insulation on these types of water heaters.

What do you think? Have you installed a water heater insulation blanket? Was it worth the time and expense? What tips do you have for installation?

(Image is considered public domain, provided by EERE)

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February 27th, 2008 | Posted by: Ethan
Categories: Green | Trackback

5 Responses to “Insulate Your Hot Water Heater”

  1. Wow, I didn’t realize it was that big of a savings. We have a blanket but my hubby has yet to put it on the heater. Of course we just replaced our heater to an energy saver model which helps too. I am going to have to make sure we put that blanket on!

  2. Aimee,

    You know, I thought the number was pretty high. So I went a did some math on the subject. I think the savings is actually more like $3-5 / mo for a family of 2 with an older water heater. So I updated the post. It could get much higher if you have several negative contributing factors:

    1) You have a cold/drafty water heater location, like in an open area of a poorly-insulated basement.

    2) You keep your hot water heater at a very high temperature (say 125 deg. or more)

    3) You have a particularly old (20 years+) water heater with a low R-value of insulation.

    But, I think most families will experience somewhere in the $3-5 dollar/month range. Not bad when you consider that you shouldn’t ever have to replace the insulation, and it’s only a $20 investment. Over the course of a few years, the return could easily be more than $100.

  3. I’m showering away dollars by the day. But, it’s mostly because I’m going to insulate the entire basement (which is a nice, “toasty” 62 degrees nowadays), particularly the area around the utility room, once I get around to resuming the basement family room renovation. That should save me beaucoup bucks. Once I get to it. Hopefully sooner than later.

  4. I take the track of every little bit helps (save money / planet). So I’m all about these kinds of tips.

  5. Jennifer responds:

    We did this two years ago, and the savings were significant! One of the best $20 we’ve spent so far.

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