If your water heater is warm to the touch, adding a blanket of insulation will keep the heat in where you want it. Adding one will save you about 6-10% of your water heating cost which usually isn’t a whole lot but every little bit adds up. This is a pretty easy job so go ahead and increase your home energy efficiency and feel good about it. You can pick up a water heater blanket or water heater jacket at any local home improvement store for under $30. Choose one with an R-value of 8 or more.
If the manufacturer’s directions differ…follow directions included with the jacket
Wrap the blanket around the water heater making sure to mark and then cut around any access panels or thermostat controls. If you have a natural gas water heater be sure to keep the blanket 3 or more inches away from the flue at the top of the tank as well as the drain at the bottom of the tank and the burner.
Use the tape that came with the blanket or use duct tape and tape horizontally at the top, middle and bottom of the tank overlapping the blanket by 3 or 4 inches. Again, be sure not to cover access panels or essential outlets for the heater.
If you have an electric water heater, add a layer or insulation or insulation board over the top of the tank as well cutting out the areas where the pipe is.
Do NOT cover the top of a natural gas water heater.
If you haven’t already, lower the temperature of your water heater now to 130 degrees. 120 degrees might just be hot enough for you now too, but don’t go higher than 130 with the blanket on.