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Water Heater Applications Water heaters are designed to meet the hot water demands of your household and the heating of water is considered the second largest cost of energy next to heat/air conditioning systems in your home. Whether your home uses electricity, gas, or liquid propane gas there is a water heaters designed to suit. Gas, oil or electric-fired devices are all available for residential or commercial use, but for larger flow rates gas heaters tend to be more common. Principles Of The Water Heater Because water heaters rank just behind air conditioners and furnaces in energy consumption choosing a gas water heater can answer your efficiency and economics requirements. Gas water heaters are faster at heating a tank of water than all other forms of energy and as well as being energy efficiency are also time efficient, therefore less expensive to run.