Abstract: A thermal energy savings hot water heater is described as having a steel storage tank around which is spirally wrapped, a plurality of separate groups of copper coils that are formed of hollow copper tubing that has a rectangular cross-section for optimum surface contact or confrontation with the storage tank. A separate refrigeration system is connected to each group of copper coils, so that refrigerant vapor, from the compressors, is circulated through the coils for heating water within the tank instead of circulating the vapor to the condensers where the heating energy of the refrigerant is wasted into the ambient atmosphere.