Should I Insulate My Water Heater?

3 Ways to Improve Water Heater Efficiency

Very few homeowners would guess that their biggest energy expense is water heating. But once you think about it, it’s not all that surprising to find that heating water for showers (those long, hot showers you love), and washing dishes, doing laundry, cleaning and other tasks typically represents as much as 20% of energy bills—or even more. So, finding ways to improve efficiency in water heating makes a lot of sense.

Can you improve your water heater’s efficiency?

Your water heater had a specific efficiency rating when it was installed—how can you change that? You don’t have to be a mechanical engineer to keep your equipment running at peak efficiency. But there are some easy steps you can take to improve your water heater’s performance and keep energy bills manageable.

Reduce Stand-by Heat Loss

It the winter, your water heater needs to work harder because the water is colder to start with. With a tank style unit, which must keep up to 80 gallons of water (or more) hot all the time, your water heater also needs to work harder because the air around the tank is colder.

Feel the side of your tank water heater: If it’s warm to the touch, it’s losing heat. This is called standby heat loss, and it can definitely bump up your energy costs. The best way to improve efficiency and save money is to reduce heat loss from your water heater. Reducing that standby heat loss is easy and inexpensive with an insulating wrap or “blanket.” Water heater insulation could reduce standby heat losses by 25%–45% according to the U.S. Department of Energy . It can also help you save up to 16% in energy costs for water heating.

Insulating wraps are inexpensive and wrapping your water heater is an easy DIY project. You will need a helper, and you’ll need to shut your water heater off, so make sure everyone has showered before you start!

Lower the Temperature

You might be thinking that, obviously, lowering the temperature will save money, but won’t my showers be colder? The fact is, most water heaters have a default setting of 140° but that’s not only dangerous, it’s also inefficient. Reducing the temperature setting to 120° will meet all your hot water needs even without insulation. Once your water heater is well-insulated, turning down the temperature on your water heater can save as much as 10% on heating costs.

Eliminate Standby Heat Loss

Insulating your water heater can help you drastically reduce that stand-by heat loss. But you can eliminate it entirely by updating your old equipment to a tankless water heater. If your tank-style water heater is nearing the ten-year mark, you’ll need to replace it soon. And replacing it with a tankless water heater will eliminate standby heat loss. That’s because tankless water heaters save energy by instantly heating water when you need it. When you turn on the tap, water flows through the unit and is heated instantly by a propane-fueled heating element. When you turn off the tap, the unit stops heating water. As a result, you can enjoy virtually unlimited hot water—while seeing savings of up to 40%!

While upgrading to a tankless water heater will cost more up front, it will pay for itself in savings in the long run, versus a storage tank style, which will cost you more over time.

The Bottom Line

Insulating your tank-style water heater is an excellent way to reduce stand-by heat loss and improve efficiency if you aren’t ready to replace it. And while any new water heater will be more efficient than older technology, for super-high efficiency and savings, you should also weigh your options and consider going tankless.

Ready to learn more about the benefits of a tankless water heater for your Tri-Cities home? Admiral Propane’s expert team can help you choose the best option for your needs and your budget. Enjoy energy efficiency and all the hot water you need with a new water heater! Contact us today to get started.