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Water Heater Insulation: Does Tank and Pipe Insulation Work?

A water Heater in a basement with water heater insulation attached to the pipes on top

Your water heater continually sucks up too much energy, but it’s not like you can go without hot water. 

After some preliminary research into your options, you’ve discovered that you could insulate your water heater, both the tank itself and the pipes. 

But, will it make a difference if you go through the time and expense to do this? 

If you want more information on water heater insulation, you’ve come to the right place. This guide will further expound on your savings potential, discuss your insulation options, and discuss how much the process will cost. 

Let’s get started!

Does Water Heater Insulation Work?

Water heater insulation is effective since it reduces heat loss by 25-45%. This reduction reflects positively on your energy bills, which could drop by 7-16%. In addition, insulating your water heater is inexpensive and easy to do too!

What Energy Savings Can You Expect with Water Heater Insulation?

Water heaters are a must. You rely on them every day when you use hot water to boil water or wash your hands and when you want to take a hot shower or bath. 

However, your water heater is also imperfect. According to Ohio State University’s Green Home Technology Center, an electric water heater loses up to 1.4 kilowatt-hours of heat from storage tank standby losses.

No wonder the website also found that water heaters contribute up to 18% of utility bills annually.

Insulating your water heater, the tank, and the piping is the answer. 

A homeowner makes adjustments to the foam insulation attached to the pipes atop his water heater tank

Water heater insulation will reduce heat loss, allowing your heater to have more warm water on standby. The unit will work less to produce hot water.

Energy Saver, a US Department of Energy resource, notes that the heat losses from your water tank can decrease by as little as 25% and by as much as 45% through insulation.

The water in the tank also stays warmer longer, just like when you insulate coffee inside a thermos. 

Of course, we know you’re interested in how much you can save on your monthly utility bills if you decide on water heater insulation. According to Energy Saver, the answer is between 7-16%.

As we’ve mentioned elsewhere on the blog, Move.org, a moving resource, states that the average cost for utilities in the US per month is $118.

If you reduce your bill by seven percent, you will shave off $8.26 monthly. If the savings are up to 16%, you will trim $18.88 a month off your bill. At $118 a month, your annual utility costs would be $1,416. 

With a seven percent reduction in your utility bill spending over the year, you could deduct $99.12 for a grand total of $1,316.88.

A year of utility bill savings at a rate of 16% is $226.56 off your annual bill, which adds up to $1,189.44 yearly.

How to Insulate Your Water Heater Tank

As we’ve made clear, you can insulate both the water heater tank and the water heater pipes. So we’ll begin by talking about how to protect the tank itself.

The solution is straightforward—all you need to do is buy a water heater insulation blanket.

These blankets come in various sizes to accommodate different makes and models. You’ll have to find your unit’s specs specifically before purchasing a water heater insulation blanket. Otherwise, it might not fit.

A water heater insulation blanket applied to a water heater in the basement of a home.
Courtesy of HouseLogic

That information is usually available on the tank. You should see a label indicating the amount of water in gallons it can hold. That’s all you need to know to buy a water heater blanket. These blankets are available at home improvement stores as well as online. 

Just as you don’t want a blanket that’s too tight, as it won’t even fit on the tank, you don’t want an overly loose one, either. A loose water heater blanket lets too much air in, rendering the blanket ineffective.

When the time comes to apply the water heater insulation blanket, here’s what you do:

  • Turn off your water heater power supply – water heater tanks can be scalding when the unit is on, and you don’t want to get burned!
  • If yours is a gas water heater, switch the gas valve to the pilot setting for now.
  • Allow a few minutes for the tank to cool.
  • Once the tank has cooled, place the blanket over it
  • If the blanket covers any panels or valves, outline the area with a permanent marker, and then cut away the fabric using fabric scissors.
  • Hold the blanket together using electrical tape.
  • Turn the water heater back on

How Much Does Water Heater Insulation Cost?

The best part about insulating your water heater tank and pipes is that besides being easy enough to do on your own, it’s also inexpensive.

A water heater insulation jacket costs $20-$40. If yours is an oversized heater or a specialty model, you may pay more, but this expense is fairly low-cost.

Fiberglass insulation is priced by square foot and costs between $0.30-$1.50/square foot. However, you only need three feet of insulation for each pipe, so the costs will be low.

Foam pipe sleeves are also incredibly cost-effective. You’d pay less than $5 for all the insulation you’d need.

Considering you can insulate both your water heater tank and the pipes in an afternoon and that you’ll reap a lot of savings without having to spend a ton of money, there’s no reason to skip this project! 

Where to Buy Water Heater Insulation Blankets

Home Depot and Lowes have some great options, some in stock. The links in the previous sentence are affiliate links and help support the blog and more content, if you’d like to use them.

Amazon also has some great options for picking up a water heater insulation blanket. To view the three bestselling blankets currently selling, you can check these out:

Bestseller No. 2
Frost King SP57/11C All Season Water Heater Insulation Blanket, 3” Thick x 48” x 75”, R10
  • Vinyl backed fiberglass insulation blankets are designed for gas, oil or electric water heaters up to 60 gallon size
  • Improves Heater efficiency
  • 3” Thick x 48” x 75”, R10
  • Package contains a roll of plastic tape
Bestseller No. 3
SmartJacket SJ-80 5mm Polyethylene Water Heater Blanket Insulation, Fits 20-80 Gallon Tanks, Energy Star Certified, Easy to Install & Clean, No Fiberglass, Non-Toxic
  • Save Money, Energy and Help the Environment!!! SAVE 2x MORE WITH OUR PRODUCT!!! 5MM THICKNESS!!!
  • R-VALUE 7.1!!! Reduce Heat Loss by 40% !!! Recover Your Investment in a few month!!!
  • Fits All 20 to 80 Gallon Tanks / Fits Gas or Electric Water Heater
  • Easy to Install and Easy to Clean , Contains no Fiberglass, Non toxic / Non carcinogenic

How to Insulate Your Water Heater Pipes

While insulating your hot water heater tank is a good first step, you should also protect the pipes to reap the full extent of utility bill savings.

You have several options for doing this. First, you might opt for fiberglass insulation, which will be durable and warming but expensive.

End view of a roll of fiberglass water heater pipe insulation.
Courtesy of ExpressInsulation.com

Your other option is to buy pipe sleeves, which look like swimming pool noodles. Most pipe sleeves are made of foam. 

You’ll also need scissors, gloves, duct tape or acrylic tape (cable ties work in a pinch), and a tape measure.

Here are the steps to insulate the hot water heater pipes:

Step 1: Measure How Much Insulation You Need

Closeup on a technician's hands holding foam pipe insulation

Before you can begin, you need to plan how much water heater insulation material the project will require. Then, you’ll have to measure the length of the cold water inlet and hot water inlet pipes.

Remember that you don’t have to insulate the entirety of these pipes, only three feet.

Step 2: Buy Your Materials

Your local hardware stores might be the easiest or fastest way to pick up an insulation blanket, unless you want to have it shipped.

Here are some more quick links to check out the pipe insulation available:

At Home Depot
At Lowes

And here at Amazon:

Bestseller No. 1
Duck Brand Foam Pipe Covers, Pipe Insulation Foam Tubes for Hot and Cold Water Pipes, Pre Slit and Self Sealing Adhesive Edge, 0.75 in. x 1 Ft., 6 Sticks Per Package, 6 Feet Total, Black
  • Duck Brand insulating foam pipe stick covers are great for insulating both hot and cold water pipes
  • These foam pipe covers are pre-slit for easy opening and installation on curved pipes and the self sealing edges make it easy to secure
  • Versatile foam pipe insulation helps prevent winter freezing and summer sweating of indoor water, air conditioning and HVAC pipes. Safe for temperatures up to 212 F.
  • These pipe covers have an R Value of 3.6 and can fit 1/2" to 3/4" pipes
  • Each foam pipe stick is 12" long for easy installation. 6 pipe sticks come in a pack for a total of 6 feet of pipe insulation
Bestseller No. 2
Frost King Foil Backed Fiberglass Pipe Wrap, 3"x1"x25'
  • The product is manufactured in china
  • The product is highly durable and easy to use
  • Easy installation and easy handling
  • Size: 3" x 1" x 25 ft.The product is manufactured in china
  • The product is highly durable and easy to use
Bestseller No. 3
Redford Supply Co. 2 inch x 14 ft Pipe Insulation, Outdoor Pipe Insulation Wrap for Winter Freeze Protection, Water Line Freeze Protection Foam, Insulated Wrap for Copper Pipes, PVC, AC Line
  • GORILLA STRENGTH ADHESION: With an insane tensile strength of 110 lbs/inch, this isn’t just any ordinary insulating tape — it’s the strongest foam pipe insulation on the market. Built to withstand harsh weather for a whopping 25 years, this pipe foam provides long-lasting protection. If you're serious about keeping your pipes safe, this is the ONLY insulated tape you need!
  • NO MORE HASSLE: Forget the bulky foam tubes! Our easy-to-apply ac duct insulation wrap around your pipes in seconds, providing fast, stress-free protection. This ac pipe insulation outdoor solution is ideal for homeowners looking to protect pipes without the headache. If you want quick and easy coverage, this ac tape is it—making it a perfect HVAC insulation wrap choice.
  • 25% THICKER COMPARED TO ALL BIG BOX: This isn’t your average water hose insulation. It stretches up to 7x without snapping and easily contours to extreme bends. It’s the ultimate pipe insulation foam tape for tackling tough-to-reach spots on your pipes. If flexibility and durability are what you need, this foam pipe insulation delivers like no other!
  • FREEZE PROOF INSULATION: Our waterproof insulation boasts ultra-low thermal conductivity (0.11 BTU), slashing energy loss and stopping frost dead in its tracks. The foam pipe wrap ensures your home’s temperature stays perfectly regulated. If you're tired of wasting energy and money, this adhesive heat insulation tape is your secret weapon against leaks and energy loss.
  • SUMMER AND WINTER GUARD: Built to handle it all—frost, humidity, corrosion, UV rays, and scorching temps. This isn’t just steam pipe insulation; it’s the ultimate water heater insulation, designed to withstand the harshest conditions. For pipes facing extreme weather, this pvc pipe insulation solution is your best defense!
Bestseller No. 4
Pipe Insulation Foam Tube - Foam Pipe Insulation for Pipe Freeze Protection and Sharp Edge Protection 1/4" ID x 3/8" THK x 6FT
  • Application: Pipe insulation foam tube for pipe freeze protection and sharp edge protection.Provides good water pipe insulation, sharp edge collision protection, and has good surface grip.(Please confirm the inner diameter before purchasing)
  • Foam Pipe Insulation: Our pipe insulation foam are made of high quality nitrile rubber.Class B flame retardant, good flame retardancy, high elasticity, non-absorbent
  • Non-folding packaging: Foam tube is naturally rolled up and put into the packaging bag.Avoid obvious creases caused by folding.Working temperature is -58°F to 230°F(- 50℃ to 110℃)
  • No Pre-cut: The foam tube is completely closed structure, better thermal insulation effect.Pipe insulation foam can be cut to length as you need
  • Package: You will receive 6 feet of insulation foam tubing. We stand behind of our products if you have any questions
Bestseller No. 5
Pipe Insulation Foam Tube 1 inch,- 6FT 1" Foam Tubing for for Indoor Outdoor Plumbing Pipe, AC Unit, Guitar Stands (1"ID x 1-23/32"OD-6Ft)
  • Size - Foam Tubing Dimensions - 1inch/25mm inner dia, 1-23/32"OD/43mm outer dia, 1.8m(6ft) total length,Working temperature is -40°C to 80°C(-40°F to 176°F)
  • Material - high-quality fire-resistant insulating material,fire-retardant, self-extinguishing, Environmentally friendly raw materials are non-irritating and non-toxic
  • Advantage - flexibility, bending resistance, cold resistance, heat resistance, flame retardant, waterproof, low thermal conductivity, shock absorption and sound absorption
  • Wide range of applications -Widely used in industrial pipe insulation,water pipe insulation,anti-collision tube,air-conditioning pipes,guitar stand neck,etc.
  • How to use – When installing the pipe, wet the steel pipe with lubricant and water, and then install a sponge, so it is easier to install the pipe.

Step 3: Place the Insulation on the Pipes

Closeup on a technician's hands wrapping a pipe with insulation

If you’re working with fiberglass, we highly recommend wearing gloves, long sleeves, and pants. Fiberglass is very abrasive if it makes direct contact with your skin!

Of course, you can skip the gloves if you’re using a traditional foam pipe sleeve. Well, unless you feel more comfortable wearing them.

You can easily cut the foam down to size, but that’s not so much the case with fiberglass. You’ll have to measure out a three-foot piece precisely.

Step 4: Secure the Pipe Insulation

Using cable wires or tape, secure the insulation every two feet, so it doesn’t shift or fall off.

That’s it!

Conclusion 

Water heater insulation on the tank and piping can retain hot water for longer and reduce heat losses, making the water heater work much harder. The utility bill savings you can enjoy are between 7-16%, which is not too shabby at all!

We hope the information in this guide inspires you to insulate the water heater tank and the pipes. A little effort will go a long way as you enjoy hundreds of dollars saved year after year.

Attainable Home, LLC participates in the Amazon Services LLC Associates Program, where some of the links in our articles earn us a small commission. Feel free to use them or not, the pricing does not change either way, but it does help support the team here.

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