How to Insulate Your Water Heater

Energy costs are rising through the roof. No doubt you've felt the strain at the gas pump, but besides cutting back on driving time or buying a new car, there's not much you can do. However, there are simple steps you can take around your house to save on energy costs while working with what you already have. One often overlooked area is your water heater.

Chances are your water heater is losing energy and dispelling heat to the space around it. To find out if you could benefit from installing some insulation, check your water heater's R-value, which should be listed right on the tank. If your water heater has an R-value of R-24 or less, it is losing heat and costing you more. Another easy way to tell how efficient your water heater is is to simply touch the tank. If it feels warm to the touch, it's giving off heat to the dead space surrounding it. Luckily, insulating your water heater is a relatively easy do it yourself project that can be completed in a matter of an hour of two.

You can purchase a precut insulation jacket or insulation kit for your water heater at any hardware or home improvement store for around $20. The kits contain all the materials you need, including insulation and tape. The kits come in different sizes for different types of water heaters. Make sure you check your heater's manual, as some manufacturers don't recommend insulation for their particular product. You will also need a utility knife to complete the project.

For electric water heaters, you will start by installing the circular top piece of insulation from the kit. You will likely need to make some cuts to get it to fit around the pipes on top of the water heater. Once it's properly fitted, tape it in place. Insulating the top of a gas water heater is not recommended and can create a fire hazard.

Next, you will insulate the sides using the large jacket or blanket insulation piece. Wrap it around the sides of the water tank and tape the seams to secure it. You will need to make a cutout for the drain and the control panel. Trim away any excess insulation from the top and bottom. For electric water heaters, ensure your thermostat is set below 130 degrees so the wiring doesn't overheat. Be especially careful when installing the insulation on a gas water heater. You need to ensure there is enough airflow to the burner and keep the insulation well away from the drain and the flue. Since the insulation material is flammable, improper installation can create a fire hazard.

By following these simple steps, you can increase your water heater's efficiency by more than 25% and expect to save around 7% or more in heating costs.