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How to Insulate Your Water Heater

Wrapping a water heater in insulation can save 4-9 percent in water heating costs. If the tank is warm to the touch, it needs insulation. Insulating an electric heater is a DIY project; a plumber should handle an oil heater.

Ask for a water heater blanket or jacket at a hardware or home supply store. These cost about $20, are generally made of fiberglass, and some come with cutout holes for pipes and coils and tape for securing it.

Have a dust mask, a marker, duct tape, and a utility knife. It will be easier if two people work together.

Turn off the heater and the circuit breaker on your electric panel.

Set the heater's thermostat to 130 degrees or a bit below - any higher and the insulation could overheat the wiring.

Use a mask if the blanket is made of fiberglass.

Wrap the blanket around the tank, tape it up temporarily, and mark where the cutouts will go (if not pre-cut): for the control panel, coils, pipes, and the unit's safety and product information.

Cut out the holes, re-wrap the heater, and secure it with tape.

If the blanket does not come with a round piece for covering the top of the tank, measure and cut one, and again include cutouts for pipes coming out of the tank.

Turn the heater back on and save money!

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