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How Effective Are Electric Heaters? Electric heaters can be extremely efficient at point-of-use, converting every watt into heat without losing any. However they can likewise be less effective due to different elements consisting of heat losses, insulation and thermostat control. The most efficient electric heating systems are those that use a storage function to relay heat during lower-cost off-peak hours. This is especially crucial in areas where electricity rates are based on time-of-use. Energy Efficienc