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As the weather gets colder, its probably a good idea to insulate your water heater. This is as easy as buying a water heater jacket and throwing it around the water heater. Most water heaters in Las Vegas are kept in the garage where it is much cooler than the air conditioned house. The outer skin of the water heater transfers the cooler air temperature ultimately to the tank, although there is insulation between the skin and the tank.
So go to the store and buy a jacket for your water heater. Secure it around the tank and keep it warm and snuggly. While you are at it, you can buy some pipe insulation and wrap the pipes at the top of the water heater. One pipe will be the hot water outlet and the other is the cold water inlet. Wrap the pipes, particularly the hot pipe, to slow down the transfer of heat through the copper pipe to the ambient air.
Your water heater should have heat traps built into these pipes or fittings to keep the hot water from creeping up and out of the tank as it becomes more buoyant than the cold incoming water. This can also be accomplished by creating a high loop with the copper flex lines to the point where the pipe rises higher than the point that it enters the wall.
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