Hot storage tanks (HST) are known for their high energy consumption, attributed to variations in usage, heat dissipation within the tank, and heat losses to the surroundings. This study proposes a chimney-type electrically heated HST, which is investigated under static mode to enhance its thermal performance. Different natural circulation areas (chimney areas) with large (9.5 cm diameter), medium (2.5 cm diameter), and small (1.5 cm diameter) sizes were utilized to examine the effect of natural circulation on the HST performance. Additionally, the influence of chimney insulation on the HST performance was also studied. The experiments revealed that the chimney significantly affected the thermal stratification within the tank. Different chimney contact diameters (9.5 cm, 2.5 cm, and 1.5 cm) were tested, showing varying degrees of thermal stratification. The results indicated that smaller chimney contact diameters led to higher thermal stratification and more rapid heating of the top layer temperatures. However, the impact of insulation on thermal performance was inconclusive, suggesting the need for more effective insulation and further investigation into the dynamic mode of operation. The findings also highlighted the faster heating of the top outer layer compared to the larger diameter, emphasizing the significance of the chimney type electrical heater in the hot storage tank.