The other day I found this site- http://www.johnsavesenergy.com/
The guy who runs it recommended insulating the hot water heater. I had always heard if your heater isnt warm to the touch, then it doesnt need extra insulation. He laid out a pretty convincing argument though (pics of his meter before/after, etc and good methodology on his other efficiency tricks), so I gave it a try. I put one layer of reflectix on the top of the tank, and put one of those generic hot water heater blankets from Lowes on it. Too early to see the savings, BUT, when you put your hand under the insulation, it is HOT under there (electric water heater), so clearly the old warm to the touch test is not accurate. I recommend you insulate your heater if you havent already, because it is certainly losing heat!
The guy who runs it recommended insulating the hot water heater. I had always heard if your heater isnt warm to the touch, then it doesnt need extra insulation. He laid out a pretty convincing argument though (pics of his meter before/after, etc and good methodology on his other efficiency tricks), so I gave it a try. I put one layer of reflectix on the top of the tank, and put one of those generic hot water heater blankets from Lowes on it. Too early to see the savings, BUT, when you put your hand under the insulation, it is HOT under there (electric water heater), so clearly the old warm to the touch test is not accurate. I recommend you insulate your heater if you havent already, because it is certainly losing heat!