Getting Into Hot Water!
I observe a lot of homes each and every year for estimates and doing actual home improvement projects. One thing I notice is how few homeowners take advantage of a small investment that saves both energy and money. I am talking about insulating your hot water heater by installing a hot water heater insulation blanket. Many hot water heaters are located in unconditioned spaces (attics, garages, basements, crawlspaces) and only have a existing insulation R-value of 3. Installing an insulation blanket around your hot 
water heater will help keep you in hot water! These blankets are available at most home stores for ~ $20. The task of installing it takes perhaps 15-20 minutes and can be done by many home Do It Yourselfers. Be sure to follow the manufacturers’ directions when installing.
Some estimates I have read state that a hot water heater can lose 15-40 percent of its heat energy through it’s walls while in standby mode for most households (Saturn Resource Management). An insulation blanket will help to slow that heat loss and according to the US Department of Energy will save you 4%-9% on the cost to heat your hot water. You may also want to consider adding foam pipe insulation to insulate the hot water line exiting the hot water. Again, use caution especially with gas water heaters and follow manufacturers’ directions when installing.
Another way to save on your hot water bill is to turn down the water heaters thermostat. Both gas and electric hot water heater tanks have an adjustable thermostat on the front of it. Even turning down the thermostat to it’s lower setting when you go away for an extended period of time will save. Just remember to turn it up when you return!
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