Water heater blankets are installed to provide or increase insulation, thus reducing heat loss from the water in your water heater, reducing energy consumption and reducing the cost of operating your water heater. Proper insulation provides effective resistance to the natural flow of heat from your water heater to the cooler areas outside your water heater.

Insulation R-Value

The R-value rating of insulation is a measure of its resistance to heat flow. The higher the R-value of a material, the more effective it is as an insulator. If an installation has multiple layers, its R-value is the sum of the R-value of each layer. Insulation material, thickness and density factor into R-value. The method of insulation installation may also play a role its effectiveness as well. For example, if insulation is compressed during delivery or installation, its R-value is reduced. According to the U.S. Department of Energy, if the R-value of the storage tank of a water heater is less than R-24, adding an insulation blanket rated at R-8 or greater can reduce heat losses by 25 to 45 percent, reducing energy consumption and saving about 4 to 9 percent in water heating costs. Custom installation jackets or blankets made to fit specific water heaters are available in the $10 to $20 range. At that price, a blanket can pay for itself in about a year. Check with your utility company; it may offer discounts, rebates and even installation of the blanket without charge.

Other Considerations

If your budget is tight, and your main purpose for adding an insulation blanket to your water heater is financial, there may be other factors to consider: If you have a water heater, but you are not responsible for the payment of your energy costs, you could forgo the addition of a water heater blanket until your finances improve. You'll be wasting energy, but not your own money. If your water heater is in a location where the climate is extremely hot, or if the water heater is rarely used, it will take longer for you to recover your blanket purchase and installation costs. If your utility company won't install an insulating blanket for you without charge, and you cannot install one yourself, factor this cost into your decision-making process.

Quick Tip

Without some research, you may not know the R-value of your water heater. In this case, just touch it. If it's warm to the touch, it's losing heat, increasing energy consumption and cost. Consider adding an insulating water heater blanket.

Source:

How Insulation Works

The R-Value of Insulation

Insulate Your Water Heater Tank for Energy Savings