My 40 gallon water heater started leaking. Bought a new one. Only thing its taller than the one I'm replacing. Voltage and watts are the same. I have enough space for new heater. Is it OK to use to replace old heater?

No problem. You can use flexible connectors (http://www.lowes.com/pd_379107-18701-LBLK+BF-24_0__?productId=3690408) to connect the taller tank to your water lines so that you don't have to do any tricky cutting and soldering.

No problem. You can use flexible connectors (http://www.lowes.com/pd_379107-18701-LBLK+BF-24_0__?productId=3690408) to connect the taller tank to your water lines so that you don't have to do any tricky cutting and soldering.

Thanks I have been without hot water since November. Didn't have the money to replace at the time. Tax refund just got here. First thing I did was buy this water heater. Thank you.

Agree with Rickj, no problem.

You can cut existing piping with tubing cutter, repipe with Shark bite flexible water heater connectors. You can even find them with a cold water shut off valve. Combined with a PVC pipe for the T&P valve and you shouldn't have to do any soldering.
If you put a loop or S shaped bend in the connectors, you don't need heat trap nipples (which I don't like).

MTS31801: Sorry about being w/o hot water for 3 months.

Advice for you and everybody else in similar situation: Next time, you can always look on Craig's list for used water heaters. Our company always saves, cleans, and puts on Craig's list all water heaters that we replaced with new units - and that are re-sale worthy. You can get fully functional water heater for under $50.00. You install yourself. Over the years, we've made tons of people in need very happy.

Milo