Location

• If you would prefer a gas hot water tank, it has to be located near the gas line and chimney in the house. This obviously limits where you can place the tank. If you want more flexibility in where you locate the hot water tank, electric may be a better choice.
  
  

Size

• Electric water heaters tend to be larger than gas ones. This could be especially important if you have a large family who all want to take showers every morning, or if you have to do several loads of laundry in a row.
  
  

Speed of Heat

• Gas hot water tanks can heat water more quickly than electric ones, so this could make up for the fact that they are usually a little smaller.
  
  

Saving Energy

• No matter what type of tank you choose, you can save energy by insulating the exterior of the tank so the water stays hotter longer. Be sure not to cover any valves, pipes or controls. You can also buy rigid thermal insulation to place under the tank to reduce heat loss from the bottom.