Yes, water heater blankets work by providing insulation that reduces heat loss from the water heater, improving energy efficiency and potentially lowering utility bills.
Water heater blankets promise to reduce energy costs by insulating your tank. But do they actually work? The answer depends on your water heater type, age, and installation. This guide reveals when insulation blankets are worth it – and when they’re a waste of money.
How Water Heater Blankets Work
These fiberglass or foil wraps reduce heat loss from your water heater tank. By maintaining water temperature longer, your heater cycles less frequently. This cuts energy use for electric models, but provides minimal benefit for gas heaters.
Electric vs. Gas Water Heaters
Electric water heaters lose heat through the tank walls, making blankets effective. Gas models lose most heat through the flue, so blankets provide little benefit. Gas water heaters may even become dangerous if blankets block ventilation.
Potential Energy Savings
The U.S. Department of Energy estimates water heater blankets can:
- Reduce standby heat losses by 25-45%
- Save 7-16% on water heating costs
- Pay for themselves in about 1 year
Real-World Performance
Actual savings depend on:
| Factor | Impact |
|---|---|
| Water heater age | Older units benefit most |
| Basement vs. garage location | Colder spaces see bigger savings |
| Existing insulation | Newer models may already be well-insulated |
When to Use a Water Heater Blanket
Best Candidates
Consider a blanket if your electric water heater:
- Is more than 5 years old
- Feels warm to the touch
- Has an R-value below 24
- Is located in an unheated space
When to Avoid
Skip the blanket if your heater:
- Is gas-powered
- Has built-in high R-value insulation
- Shows any signs of leaks
- Has warning labels against insulation
Installation Tips
Proper installation is crucial for safety and performance:
- Turn off power at the breaker for electric models
- Measure and cut blanket to fit (leave top uncovered)
- Mark and cut openings for controls and valves
- Secure with tape, avoiding compression of insulation
- Never cover warning labels or access panels
For maximum savings, consider adding bottom insulation on electric models. This can save an additional 4-9% according to Energy.gov.
Alternative Ways to Save
Other water heater efficiency upgrades include:
- Installing a timer to reduce heating during off-peak hours
- Adding pipe insulation to hot water lines
- Lowering thermostat to 120°F (49°C)
- Regularly flushing sediment from tank
For homes with high hot water demand, a tankless water heater with recirculation pump may provide better long-term savings.
Safety Considerations
Improperly installed blankets can create hazards:
- Blocking combustion air vents on gas models
- Covering temperature/pressure relief valves
- Overheating wiring on electric units
- Trapping moisture that accelerates corrosion
Always check local codes and manufacturer recommendations before installation. Some utilities offer free or discounted insulation blankets – check with your provider first.
For more on water heater efficiency, see this guide to optimal temperature settings.
