Here is what an A.O. Smith rep told me when I was replacing my water heater in my home.
"If you buy a less expensive water heater,that has glass insulation in it,a water heater blanket would help a little in saving the heat in the tank."(I do not know what a "little" is.) "If you buy one that has foam insulation in it , the heat loss would not be enough to really measure or care about."" Both types need to have heat traps in the piping when installed to keep as much heat as possible in the tank."
Thx for getting back. Wanted to clarify: what type of the water heater blanket are you referring to? Pls advise, thank you
You can get insulation to cover your water heater at most home improvment stores. This is something you will have to fabricate because they do not sell and actual "blanket" that will just fit over your heater. You can use the 1 inch thick fiberglass insulation batting material or you can also use the radiant barrier foil looking stuff. either one will work fine. ... how much you will save depends on many variables. Anyway, it is also a good idea to place a heat trap in the supply line...whats a heat trap? just a loop in the supply line...thats all.