To reduce the on-peak electrical power consumption, storage devices are widely performed with the help of an energy management system. According to IEA, residential air conditioning consumes 70% of the electricity, increasing by 4% every year. To minimize peak power consumption, thermal energy storage (TES) can be used to store cooled water for the air conditioning system. An efficient chilled water tank was designed and computationally investigated. Three-dimensional cylindrical tanks were simulated with seven different heights to diameter (H:D) ratios. At first, the temperature changes in a chilled water tank during discharging and charging periods were studied. An 11-h charging period was carried out during the off-peak time at night, while the discharging period was 13 h during the daytime. Under time constraints regarding peak and off-peak periods, a tank with an H:D = 2.0 can only be used for 13-h discharging. Then the chilled water was simulated with a set temperature of 4 °C during the charging. This resulted in the system being usable for six days, after which it had to be stopped for longer charging. A storage tank with an H:D ratio of 2.0 was found to be suitable for an air conditioning system. If six days of operations (one day off) were used, it could save 15.38% of electrical energy consumption and 51.65% of electricity cost. This saving leads to a 5.55-year payback period.