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The most common way to heat water in the United States is with a tank-style water heater.  Tank Water Heaters provide a large volume of dependable, low-cost hot water. Fuel sources can be propane, natural gas or electricity.

Typically, there is insulation between the storage tank and the outer jacket.  This insulation slows loss of heat however cannot eliminate it entirely.  To maintain a preset water temperature, the water heater must cycle on periodically, with or without a current demand for hot water.  

Tank water heaters operate at approximately 70% usable capacity, meaning a 50-gallon tank has about 30-35 gallons of hot water in reserve for usage. If there is high demand over a short period - a family taking back-to-back showers in the morning or a vacation home packed with guests - the hot water can run out. When this occurs, homeowners must wait for the water to get hot again.

Residential tank water heaters typically store between 20 and 80 gallons of hot water, usually at the factory setting of 120°F. The temperature can be adjusted up or down by a control on the unit.

Upgrading a standard 5' x 9' bathroom to a master suite or an in-home spa may require upgrading to a larger gallon capacity unit, especially if the new bathroom will include a deep soaking tub with a multi-head shower system.

Tank water heaters are typically located in the garage, basement or attic, therefore replacing a tank water heater with another tank water heater is fast and keeps labor costs to a minimum.

If a remodeling budget is tight, tank water heaters will likely be the most affordable choice, since labor requirements are minimal. Installed costs are typically between $500 to $1,000.

Current gas hot water heaters contain special flammable vapor ignition resistant (FVIR) technology that prevents the ignition of flammable vapors, such as spilled gasoline, outside the unit. All gas hot water heaters sold since July 1, 2003, must have this FVIR technology.