Once everything is connected, carefully test the water heater by turning it on and checking for leaks or possible malfunctions. If everything works correctly, insulate the pipes to conserve energy and reduce heat loss. Conversions like this can be expensive since they require carpentry and extra components. However, converting to either system will pay back in dividends over the years by keeping your energy costs very low. As a bonus, it will greatly minimize your home's environmental impact. If you no longer need all the storage tank capacity that your old system offered, you can save a couple hundred dollars by opting for a system with a smaller water tank.