One of the most inexpensive and efficient methods to save energy and lower energy bills is to install an insulation cover over your gas fired water heater. Even high efficiency type water heaters may have less then one inch of insulation on the interior of the tank. An insulation jacket or blanket can be purchased at most home centers for a modest cost. These types of insulating blankets are very effective in keeping heat energy inside the water heater.
If you can not locate an insulating blanket at your local home center you can easily make one using some lengths of fiberglass batt insulation.
Cut lengths of fiberglass batt insulation that has a paper backing that are long enough to wrap around the water heater tank. The two ends of the length of batt insulation should be long enough to meet at the front of the gas water heater. Use a sharp utility knife to cut the insulation. An effective way to cut insulation is to use a 2×4 wood member to press the insulation down. Cut the insulation with the paper backing is facing up, using the edge of the 2×4 as a guide for your knife.
Begin to wrap the lengths of insulation around the tank starting at the bottom of the water heater. Use industrial tape or duct tape to secure insulation where the two ends meet. Be sure to use plenty of tape so the ends will not separate.
You must make sure to keep the pressure relief discharge valve (TPRV), discharge pipe and the gas valve and temperature controls unobstructed. You want these unobstructed so that they can be easily accessed and viewed.
Cut the insulation to fit around the top of the water heater tank. Be sure to leave three inches of clearance from the insulation to the smoke pipe that exists the top of the water heater. Make sure that the bottom of the smoke pipe is unobstructed in order to avoid the possibility of toxic gas from entering the home.
Make sure not to obstructed the air intakes located at the bottom of the water heater. You do not want the water heater operating in an oxygen starved environment. The tank will not perform efficiently if it lacks the required air.
Apply one long length of duct tape to the seam (where the sections of insulation meet) vertically in order to help prevent the lengths of insulation from separating. You may have to use several long lengths of tape to perform this step.
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