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Naturally it will become more efficient. And why is that? Simple. A water heater raises the temperature of the source water. Therefore if the source is at 10 and you need it to heat up to 60 , the unit has to heat the water up by 50degrees.

Should the source be at say, 40, the unit will only have to heat the difference between 40 and 60. Since the thermostat(cut-out) will already be at 40, the heater will only raise the temperature by 20, thus working less, and naturally, WASTING LESS energy, which is an increase in efficiency.

An example

10deg heated up to 60deg will take 40minutes (20 gallon tank)

40deg heated up to 60deg will take 10--15minutes

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Q: Does the effency of a water heater increase if the supply water temp rises?
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