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Hot Water Insulation – Everything You Need To Know!

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Installing hot water insulation over the hot water system will help keep the system more efficient. Adding the heat insulation over the electric or gas hot water system will help the system keep heat insulated during colder months. Optimised Plumbing Services has been working with hot water systems for over 20 years and can help apply the temperature insulation. 

A hot water installation blanket wraps around the current hot water tank to help reduce the amount of heat lost. Installing the insulation blanket can help reduce heat lost from 25%-45% while the process is cheap and easy. Hot water systems often cost $300-$600 each year to run therefore insulating the system can save 7%-16% overall.

What is a Hot Water Insulation Blanket?

An insulation blanket specific to a hot water system wraps around a hot water unit. It will help trap the heat which might escape from the hot water system. A consistent temperature is also kept as there is consistent heat not being lost. There are many different types of hot water system insulation blankets, such as foil, denim or fibreglass.

Each blanket is given an R-value rating which measures its thermal resistance. The more insulation the blanket provides means the R-value increases. The material and how dense or thick the blanket is will determine the rating of the blanket. 

Why do I Need the Hot Water Heater Blanket?

A hot water system is most suited to systems which are older but are still working perfectly. A new hot water system will most likely not need one and an old or broken system will need to be replaced. Adding the insulation blanket around the hot water system will help keep the heat from escaping making it more efficient. 

If the system is located in the garage or in an open closet then this can influence if the heater needs insulation. Also, the temperature will determine if insulation is needed as well. If the system is located in an enclosed area where heat is trapped or the temperature if constantly warmer then insulation might not be required. But if the system is in an open space or the temperature goes from warm to cold then insulation could be needed. 

Do Hot Water Insulation Blankets Save Money?

Hot water insulation helps keep the heat created within the system and not be wasted. This means that the unit will not need to create as much heat due to it staying inside the system. A consistent internal temperature is made which will save costs on the energy bills. 

Gas hot water systems often cost $0.85 a day to run, $25 in a month and $300 per year. Electrical hot water systems often are $1.6 per day, $50 a month and then $600 a year. With the insulation helps keep 25%-45% of the heat contained and decrease the energy bill by 7%-16%, from $23 up to $100 can be saved. 

If wanting to know which type of hot water system is better, our blog ‘gas or eclectic hot water systems’ provides further information.

How do you Insulate an Electric Water Heater?

To install a hot water insulation blanket, firstly you must check the hot water system if it is leaking. A leaking hot water system will need to be replaced, performed by a hot water specialist. If the system is new then it is unlikely that the blanket is needed. 

Also, if the current system has an R-value of over 24 then it is also unlikely that the insulation blanket is useful. If the R-value cannot be read then touching the system to see if its hot means that it would need insulation. 

Tools and Materials

Ensure to purchase the correct insulation blanket form a local hardware store or from the utility.

  • Tape measure
  • Scissors
  • Marker
  • Protective gear (gloves and face mask)
  • Insulation blanket 


  1. Turn off the power to the hot water system through the circuit breaker. The electrical panel is where to look and ensure to switch the power off for the system for safety measures.
  2. Using the tape measure, measure the height of the hot water system to know how much blanket is needed. The top of the hot water system should not be covered by the blanket to help with ventilation. 
  3. Temporarily wrap the blanket around the hot water system unit and keep it in place with tape. 
  4. Mark the areas on the hot water system which need to be exposed and not covered up by the blanket. For electric hot water systems, there are often two control panels which should not be covered. Gas hot water systems often need an arch cut out on the bottom for the gas valves and burners. The pressure relief valve and pipe should also be exposed and not covered by the blanket.
  5. Install the insulation blanket properly and line the cut out areas correctly. Use the strong tape to hold the blanket in place and insulate the hot water system.
  6. Turn back on the power to the hot water system after the blanket has been installed. It is important that the system’s temperature is not set to above 55 degrees celsius or the wiring may overheat. 

If a professional is needed to complete the insulation task, our Emergency Plumber team is here 24/7 to help Sydney. 

Reliable Hot Water System Services

Optimised Plumbing Services is available to help install hot water insulation blankets on hot water systems. Our fully qualified plumbers also are able to repair or install hot water systems within any residential or commercial property. We offer our hot water system services across all of Sydney, including Hills District, North Shore and South Sydney.

We also provide Blocked Drain specialists to Sydney for us to resolve any blockage in any location.

For reliable and professional plumbers to work with hot water systems and insulation – call Optimised Plumbing Services on 02 8074 1475!

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