Can a Water Heater Blanket Save You Money on Your Energy Bills?

There are hundreds of ways you can save money on your energy bills by making your home more energy efficient. One easy way to save on utilities? Using a water heater blanket. It makes a big difference during the colder months, as you can imagine, but it’s also an effective way to save money year-round.

What Are Water Heater Blankets?

Also called an insulation blanket, a water heater blanket wraps around your hot water heater to keep it from losing heat. It also helps your water heater to maintain a consistent temperature. Think of it as added insulation. These are simple to install yourself, and could save you about 7%–16% in water heating costs.

Do I Need a Water Heater Blanket?

There are a few things to take into consideration before you decide.

Where is Your Water Heater?

If it’s in a closet inside your home, it probably doesn’t need more insulation since the temperature of your home is keeping it warm. But if it’s in the garage or an outdoor closet, where the external temperature is significantly different than the  water heater itself, then   it could help to retain heat and reduce wasted energy. 

Difference Between the Water Heater Temperature and Indoor Temperature

The bigger the difference between the two, the higher the amount of heat loss. If you live in Minneapolis, MN, and your water heater is in an unfinished basement or garage, then wrapping your water heater in an insulation blanket will save you money. But if you live in Phoenix, AZ, and keep your water heater in your garage, it’s not as important because the temperature difference isn’t as extreme.

Will It Void Your Home Warranty?

Before moving forward, make sure to check the warranty on your water heater to see if insulating it will void the warranty.

Find local HVAC pros

How Do I Choose the Right One?

Insulation blankets are made up of a variety of materials — from foil and fiberglass to denim — depending on how much insulation your water heater needs. They’re rated on their R-value, which measures thermal resistance.

The higher the R-value, the more insulation it will provide. The materials of the blanket affect the R-value, and so do the density and thickness.

For a water heater in a room such as the garage or outdoor closet — a place that typically isn’t climate controlled — choose something with a higher R-value.

Depending on the age of your water heater, it may be worth it to replace your water heater instead of just insulating it. Installing a new water heater may be more cost- and energy-efficient in the long run.

If you are looking for a replacement water heater installer in your area, we can help. You can even use our HVAC cost calculator before you ever make a phone call so you know what to expect.

HVAC Replacement Cost Calculator

Take Me There

Gas vs Electric Water Heaters

Whether your water heater runs on gas or electric will affect how you need to wrap it.

If You Have a Gas Water Heater…

Use immense caution and consider calling a contractor for assistance. It’s very important you don’t smother the flame or have any part of the blanket underneath the heater. Also, make sure you never cover the top of the gas water heater because the exhaust needs a place to exit.

If You Have an Electric Water Heater…

Don’t cover the heating-element access panels. As a rule, it’s good to leave both the controller and the pressure and temperature relief valves uncovered.

If you’re the least bit unsure of how to wrap your water heater, call a recommended HVAC contractor to help.

Will a Water Heater Blanket Save Money on My Energy Bills?

The short answer is yes, because it maintains a consistent internal temperature — meaning the water heater doesn’t have to work hard to raise the temperature of the water, especially with conventional water heating tanks. However, the amount of money you save will depend largely on your climate and where your water heater is located.

One final note: the Department of Energy warns not to set the temperature of any water heaters with insulation blankets over 130 degrees Fahrenheit because you can overheat the blanket — which can potentially overheat the wiring.

This is, of course, important for safety, but because you’re lowering the temperature of your water heater, it will also further save money on your energy bill. And that’s certainly something we can get used to.