Conventional storage tank water heaters are the most common type of water heater in Canada. They readily provide hot water to your home by using a tank to store heated water. As hot water is consumed, cool water replaces it and is heated by electricity, gas or oil. Older hot water heating systems typically consume more energy than their modern, efficient counterparts. Upgrading to an energy efficient storage tank water heater can improve your water heater’s efficiency by up to 40 percent, giving you noticeable savings on your energy bills.