Home > Cost Reduction, Personal Life > Hot Water Tank Insulation Proposal

Hot Water Tank Insulation Proposal

Below is a proposal I wrote to my Condominium Association Board and Members January 27th 2011.

Board and fellow condominium association members,

The following is a proposal for insulating our building’s hot water tanks.


Insulating the two hot water storage tanks and pipes will cost $3,200, provide more than $1,371 annual energy savings, and provide an annual return on investment of more than 43% (less than 2.33 year payback period).  I urge the Board and fellow condominium association members to support this investment; it is rare to find an annual ROI of more than 43%.


  • Two AO Smith T-200 water tanks. (Confirmed)
  • Boiler requires well ventilated room .
    • Ventilation required to constitute combustion in water heater.
    • Exposure to external temperatures year round. (See Footnote 1)
  • Gas Prices from Peoples Gas website (See Footnote 2)
  • Pipe insulation was included in the cost, but not in energy savings.
  • Hot water temperature is 130° F (Temperature measured at faucet)
  • R Value of insulation is 10.00
  • R Value of tank wall is 0.60


Water Tank Insulation Proposal


  1. Temperature data: http://www.weather.com/weather/wxclimatology/monthly/graph/USIL0225
  2. I made a request to the Board for a copy of the utility bills on August 23rd 2010.  I did not receive a response, therefore, I used cost data based from the Peoples Gas website: http://www.peoplesgasdelivery.com/business/gas_rates.aspx#availableRates
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