Heating & Cooling

Water Heaters – Storage Tank

Heating water accounts for approximately 20% of your home’s energy bill.

Water heaters with storage tanks are the most common in Canadian homes, but they are not the most energy-efficient. Electricity, gas or oil is used to heat water stored in the tank and supply it, as needed, to household fixtures and appliances. Storage tanks typically hold between 113 and 378 litres of water in their tanks, and this water is continuously reheated and kept hot 24 hours a day.

What to Look For

  • ENERGY STAR® certified models use 14% less energy, on average than other storage tank models.
  • Choose a water heater with the right capacity for your home and family.

Things to Consider

  • To improve efficiency, insulate the hot and cold water pipes within 2 to 3 metres of the water heater, and reduce the water temperature on your thermostat. Most water heaters are set to 60° C, consider 48°C instead.
  • For optimal efficiency, consider a tankless water heater, which only heats water when it’s needed, or a solar water heater.
  • Before you buy, check with your municipality or retailer to see if any rebates are available.


$800 to $1,500, plus installation.

Source: Natural Resources Canada