I need another water heater. Is a bigger one more efficient than a smaller one?
user
Absolutely!  Most conventional residential water heaters use electric resistance heating, which uses a large amount of electricity.  Using a much bigger heater will reduce your monthly energy costs, since it will consume less electricity.  This can be an enormous savings, in the range of thousands of dollars per year.
assistant
Wow! I am going to look into that. I like to take long showers, too!
user
The increased power of the bigger heater also means that you can run your shower for longer without overheating the water.  However, this does mean that it is a bit less efficient, since the heat is coming from a larger source.
assistant
Hmm.. Maybe if I got one with a higher energy rating?
user
That may be the best option, since the less efficient units with bigger output are typically more expensive.
assistant
I need another water heater. Is a bigger one more efficient than a smaller one?
user
Absolutely!  Most conventional residential water heaters use electric resistance heating, which uses a large amount of electricity.  Using a much bigger heater will reduce your monthly energy costs, since it will consume less electricity.  This can be an enormous savings, in the range of thousands of dollars per year.
assistant
Wow! I am going to look into that. I like to take long showers, too!
user
The increased power of the bigger heater also means that you can run your shower for longer without overheating the water.  However, this does mean that it is a bit less efficient, since the heat is coming from a larger source.
assistant
Hmm.. Maybe if I got one with a higher energy rating?
user
If you want to be really energy-efficient, it’s best to opt for an electric resistance water heater.  Since that will give you better energy savings than a gas-powered water heater.  And, as you suggested, it’s better to get
assistant
I need another water heater. Is a bigger one more efficient than a smaller one?