Yes, but with adequate insulation the rate of heat transfer will be slowed down. Water has a high heat capacity. Between the two it should be more than possible to heat the water to a temperature and keep it heated. Depending on how many heaters it takes and how often it has to cycle on, BY MY BEST GUESS, it would cost $25 to $50 a month to keep it heated. Obviously, the better insulation, the cheaper it would get.