Does putting an insulating blanket around a hot-water heater really save energy?

Question

I have read a couple of print sources recommending this, but a handyman that I know claimed that they are really useless.

Answer 1

When attempting to minimzie the rate of heat exchange or in other words the amount of heat loss from your water heater any added layers of insulation helps.

I personnally think a hot water heater is any incredible waste of electricity or gas and am looking into using a solar and/or tankless heater in our new house.

Answer 2

Well, it does help a little, but not significantly.  The real way to save energy is making sure all your hot water pipes are insulated.  Because that's where the heat from the hot water is lost from the hot water sitting in uninsulated pipes and cooling off faster between uses.

Answer 3

It does if your hot water heater is out in the garage and you live in an area where there are temperatures below freezing.  I noticed a huge difference in the number of therms I was using (natural gas) when I blanketed mine when I lived in the midwest.