If you have a newer water heater, chances are it is properly insulated.
Have an older water heater?
If you touch your water heater, and it is warm to the touch, this means you probably could use additional insulation to help improve energy efficiency – and save you money!
How do you insulate your water heater?
Well many home improvement stores will sell a “Water Heater Blanket” which is a large piece of insulation that you cut to size after measuring your water heater. After cutting it down to size – wrap it around your water heater and mark off where any controls are sticking out, then remove the wrap and cut out the holes. You should leave about a 2 inch clear cutout around the controls, so you may have to test your blanket a few times before you get the right fit, and then you simply tape it into place.
Of course – like any product – just follow the manufacturer instructions clearly - and voila – you can now begin to save money on your hot water bill, and reduce stand by heat loss by 25-50%!