PDEQ - Quick Tip

Water heating can account for 14-25 percent of the energy consumed in your home. There are several ways you can reduce your monthly water heating bill and conserve energy. Reducing the amount of natural gas or propane burned, or the generation of electricity to heat water improves air quality and saves you money. And going solar helps conserve energy even more!

Blankets Are a Good Thing

Unless your water heater's storage tank already has a high R-value of insulation (at least R-24 – check owner’s manual as some new heaters direct owners not to add insulated blanket), adding a blanket of insulation can reduce heat loss by 25–45 percent. This will save you around 4–9 percent in water heating costs. If you don't know your water heater tank's R-value or don’t have your manual, just touch the heater’s storage tank. A tank that is warm to the touch needs additional insulation.

Insulating your water heater tank with a precut water heater jacket or blanket keeps the warmth inside were it should be. Insulating your water heater tank is fairly simple and inexpensive, and it will pay for itself in about a year. You can find pre-cut jackets or blankets available from around $10–$20. Choose one with an insulating value of at least R-8 and your water heater will stay warm and toasty all year long.

Insulating a Gas Water Heater Tank

The installation of insulating blankets or jackets on gas water heater tanks is more difficult than those for electric water heater tanks. It's best to have a qualified plumbing and heating contractor add the insulation. If you want to install it yourself, read and follow the directions very carefully. Keep the jacket or blanket away from the drain at the bottom and the flue at the top. Make sure the airflow to the burner isn't obstructed. Leave the thermostat uncovered, and don't insulate the top of a gas water heater tank—the insulation is combustible and can interfere with the draft diverter.

Drop the Temperature to Save Money & Conserve Resources

You can reduce your water heating costs by simply lowering the thermostat setting on your water heater. Once your tank is nicely insulated, try setting the heater’s temperature one degree cooler. If this works for a week, try another degree cooler each subsequent week, until you notice a problem. For each 10ºF reduction in water temperature, you can save between 3–5 percent in energy costs.

Thanks to the U.S. Department of Energy for some of this information.