Should I insulate my water heater?
Yes, if your water heater is in an unconditioned space like a basement or garage. An insulating blanket for electric water heaters can reduce standby heat loss by 25 to 45 percent, saving 4 to 9 percent on water heating costs. For gas water heaters, use a blanket designed for gas models that leaves the top and bottom vents uncovered. Insulating hot water pipes also helps deliver hot water faster.
Why It Matters
Water heater insulation is a low-cost improvement. A $20 insulating blanket can pay for itself in energy savings within a year.
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