By
eHow Home & Garden Editor
Difficulty: Moderately Easy
Things You’ll Need:
Step1
Purchase faced fiberglass insulation. Make sure you measure your water heater in advance so you know how much to buy. Also, buy duct tape if you don't have any at home.
Step2
Cut the fiberglass insulation inyo strips and wrap them horizontally around your water heater.
Step3
Use duct tape to seal the fiberglass around your water heater where the pieces join together.
Step4
Cut out holes for the controls and faucets where needed.
Step5
Make a cap for the water heater (if it’s electric) and tape it on top, leaving slits in the insulation for the hardware.
Step6
Leave 2 inches of exposed area around the flue collar of a gas water heater. Keep the burner access free from insulation as well.
Step7
Tape around any unsealed edges of the fiberglass to ensure your water heater is properly insulated.
Step8
Set your thermostat between 120 and 130 degrees. Anything higher can overheat the wires. You want to insulate your water heater, not create a ticking time bomb.
Step9
Consider placing a piece of rigid insulation underneath your water heater to save double on your power bill. Lots of heat escapes through the floor. This can be difficult since you have to move the water heater, so you may want to wait until its time to buy a new one.
Step10
Enjoy the savings on your next power bill, especially if your water heater is located in an unheated room, garage or basement. Typical savings are four to nine percent.