Your attic isn't the only thing that needs insulation. Wrapping the tank and hot water pipes on an older water heater can significantly reduce the amount of "standby" heat loss, saving you money on your energy costs.
A tank wrap is a thick fiberglass blanket, secured around the tank by waterproof tape. You can find water heater insulation kits at your hardware store or home center for about $20. This cost can be paid back in energy savings in just a few months.
Newer water heaters (less than seven years old) don't need a tank wrap, but can benefit from pipe insulation, which can be purchased separately.
Learn how to install a water heater wrap
Pipe insulation
Pipe insulation comes as either a foam tube slit lengthwise, or as a small roll of fiberglass wrap.
Install the insulation on both the cold and hot water pipes connecting to your water heater, and on any hot water pipes accessible throughout the house.
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