With up to 40 percent of a home's energy usage going toward heating water, anything you can do to help your water heater's efficiency can pay big dividends.
A simple yet cost-effective addition is a blanket of insulation wrapped around the outside.
This will help the water heater retain the desired temperature longer and will cause it to have fewer heating cycles, reducing your energy consumption.
If your water heater is fairly new, it may be a more efficient model that has an insulation layer just inside the outer cover.
You may not stand to benefit as much from an insulating blanket.
On the other hand, if you can still feel a significant temperature difference when placing your hand on the outside cover, it would be a good idea to add to the insulation.
Water heater blankets are available at hardware stores and home improvement centers.
One helpful thing you should know when purchasing is the size of your tank in gallons.
Buy a blanket that is closely matched in size to your tank, and you won't have to cut and size so much to get a good fit.
Now is the time to inspect your heater before putting the blanket on.
With a catch basin under the overflow pipe, pull up on the over flow valve and release.
If it now slowly leaks, it may have some dislodged sediment or rust in the seal.
Work the valve a few more times to clean the valve's seal surfaces.
You also may want to drain a gallon or two from the drain valve to remove accumulated rust and sediment.
This can from an insulating layer in the bottom of the tank and hinder efficiency, especially in a bottom-fired gas water heater.
As with the overflow valve, you may need to open it more than once to dislodge any larger rust particles that may be caught in the seal.
Check for leaks at valves and pipes, and perform any repairs.
Also familiarize yourself with the placement of any thermostat and access panels.
These parts and any valves cannot be covered by the insulating blanket.
Installation is straightforward, but there are differences depending on whether your water heater is gas or electric.
An electric water heater can have the blanket on the sides and top, but a gas heater cannot.
Leave two inches from the bottom of the blanket side to the burner area to allow free air flow in.
Also, do not place insulation on the top of the gas water heater, to avoid impeding the exhaust gases from quickly exiting up the flue pipe.