An Electric Storage Water Heater operates similar to a kettle, with the main difference being that the water is kept hot. They usually consist of an insulated storage tank where hot water is stored at a pre-set temperature (usually between 60°C and 80°C). The water is heated in the storage tank by one or more electric resistance elements. These are the most common hot water systems used in Australia.
Many storage heaters are designed to work at off peak times when electricity tariffs are cheaper, which leads to lower running costs. However, as they only heat water at night, the water tanks need to be quite large to make sure you don’t run out of water during the day.