Blanketing Your Water Heater

Heating your water is an expensive task that usually represents 20-40% of your utility bill.  Wrapping your water heater with an insulation blanket can save some of this money by slowing the rate of temperature drop as the water rests in your tank.  With the water staying hotter for a longer period of time, the water heater remains off more of the time and will save you money and energy use.

Not all water heaters need a blanket however, some energy-efficient models have a thick layer of insulation inside the tank that is sufficient enough.  Insulation blankets for water heaters less protected against heat loss are available at home centers and hardware stores.  You can install one in a few easy steps that requires a few cuts for fitting.  Some blankets are even manufactured to fit certain models and require no cutting at all.  For these blankets, you need to know your water heater size in gallons and usually the manufacturer.


Before adding the water heater blanket, inspect all of the water-heater fittings.  If you find any leaks or signs of deterioration, have a plumber make the necessary repairs before proceeding.

Steps for Adding an Insulation Blanket
1.) Remove the insulation blanket from the package and wrap it around the tank to see how closely it fits. On gas units, insulate only the sides of the tank as it could hinder the flow of exhaust gases out of the top.  You can insulate the top of electric units.

2.) With heavy-duty scissors or a utility knife, make cutouts in the blanket for the drain valve, thermostat and any other fittings.  You can also cut areas of the blanket to reveal the safety and warning labels.  Tape around the cutouts and along the seam where the blanket meets itself after encircling the water heater and top edges.

Check the Thermostat
Water heaters often leave the factory with the thermostat set as high as 140 degrees.  The installer or previous homeowner may have set it even higher.  By turning the thermostat down to about 120 degrees, you can significantly reduce energy bills as well as the risk of scalding hot water.

Buying A Water Heater Blanket
You have many options with where to buy a blanket for your water heater.  Many local home improvement stores (Lowes, Home Depot, Menards, Walmart or Ace Hardware) will carry at least one or two types of blankets.  Reports have annual savings from a water heater blanket as high as $150 a year.  A $25 investment can go a long way and pay for itself in just a few months.