Every water heater loses heat through its sides. By wrapping your water heater with an insulating jacket, you can save $47 per year on your water heating bill. Another way to save money is to check the temperature on your water heater. If it is set at 140 degrees (medium) or higher, reset it to 120 degrees. This is satisfactory for most household needs. By resetting the temperature from 140 degrees to 120 degrees, you will save approximately $45 a year. If you plan to be away for two days or longer, turn your water heater to "pilot."

Installation
Tools needed for installation:

• Scissors or utility knife
• Tape Measure
• Tape

General Procedure Notes
Be sure to read the instructions accompanying the water heater jacket for installation and information on handling the insulation. Remember to keep the insulating material dry and free of dirt.

• Apply the insulation to the water heater with the facing to the outside.
• Secure the sections of insulation to the water heater using the type and size of tape recommended by the manufacturer.

If a side of the water heater touches the wall,

• Tape the insulation to the wall.
• Press the tape down firmly to be sure it is secure.
• Check to be sure that no air inlets, access plates, drain valves, temperature controls and pressure relief valves are covered by insulation.

Special Notes
If you have an electric water heater,

• Install the insulation on the sides and top plate.
• Cut the insulation to leave holes for the pressure relief valve, thermostat control, hi-limit switch, plumbing pipes and other access plates.

If you have a gas water heater, do not install insulation on the top.

• Cut the insulation to leave holes for the burner air inlet, thermostat control, pilot light access plate, drain valve, plumbing pipes and other access plates.

More Money Saving Tips
Wrap the first five feet of the cold water pipe leading into the hot water tank with pipe wrap. Heat can be drawn into the cold water pipe and is lost. You should also wrap the first five feet of the hot water pipe leading from the hot water heater.