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Question:

How are energy efficient electric water heaters more efficient?

Are they simply better insulated? Do they use less electricity to warm the same amount of water? I need to replace mine and need to know if it's simply an insulation issue.

Answer:

You are correctFor traditional water heaters the main difference is the insulationThere are some newer technologies available nowOn demand, Flash or Tankless water heaters only heat water when you need itThere is no energy wasted keeping a large tank of water hot just waiting all day to be useThis is great for low use households or to augment solar thermalIt would be well worth your time to research what your annual electricity use would be.
yes of course it is Al

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