Should I insulate water heater? water heater blanket?

Insulate Your Water Heater Tank for Energy Savings

Unless your water heater's storage tank already has a high R-value of insulation (at least R-24), adding insulation to it can reduce standby heat losses by 25%–45%. This will save you around 4%–9% in water heating costs.

If you don't know your water heater tank's R-value, touch it. A tank that's warm to the touch needs additional insulation.

Insulating your storage water heater tank is fairly simple and inexpensive, and it will pay for itself in about a year. You can find pre-cut jackets or blankets available from around $10–$20. Choose one with an insulating value of at least R-8. Some utilities sell them at low prices, offer rebates, and even install them at a low or no cost.

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RE:

Should I insulate water heater? water heater blanket?

I just read an e-mail from Lowe's on steps to prep your home for winter. It suggested getting my water heater insulated.

Should I? I looked on-line and the search results from lowes showed "Water heater blanket."

Is this the same thing?

Is this a good investment? (it cost...

Better yet, insulate the water heater AND as much of the piping as you can get to. Leave it on all year long.

Yes, a blanket is what you want to help save $$.

Another tip is to reduce the heat on the water heater thermostat a few degrees. I usually knock mine down in the summer and back up to just below "normal" in the winter. It's not a noticeable difference at all.

It is the same thing, you can leave it all year. If your hot water heater is newer with a high R value insulation, then you may not even save $20 a year by doing it.

You would be better served to insulate the water pipes if there is existing insulation on your water heater.

If the outside of your water tank is hot, yes insulate it. If it's room temperature save your money.

if your water heater is older than 5yrs i would replace it with energy star rated one. and would still insulate it. save electric, save water!

Yes to all three, what you are doing is helping to keep the water in the tank hotter longer so any additional insulation would help that.