Insulate Outdoor Tankless?

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Lcog

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los angeles
Help! The plumbers installed our outdoor tankless Rinnai between two batons(board and baton) on the side of our house near our master. We can hear the tankless, and the one inch gap between the back of the heater and the house seems to cause an echo effect. Is there anything I can use to insulate behind an outdoor tankless? are there things that wouldn't be safe to use behind it? Seriously I have no clue and Rinnai wasn't much help either.
 

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