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They are 30% more efficient than gas storage heaters as they only heat the water when of need. Insolar recommends an award winning continuous flow gas water heater which is Australia's most efficient one of its type with 5.62 efficiency stars. With a Insolar's storage heater you are paying to heat say 175 litres of hot water all the time regardless of how many litres use actually use or when. 67% of all water that is heated is wasted partly because it is being heated and not used or looses it heat in household pipes.