Boost your water heater’s efficiency by wrapping it in a thermal blanket. According to the U.S. Department of Energy, adding an insulating wrap to your water heater can reduce heat loss by as much as 45 percent and save as much as 10 percent on water heating costs. If unsure whether or not your water heater needs a wrap, give your tank the “touch test”. Tanks that are warm to the touch are losing too much heat and could benefit from additional insulation. Thermal blankets are relatively inexpensive and can be purchased at most hardware stores. Check this article at Kudzo if you want to know more about how water heaters work.