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Electric Vs Gas Tankless Water Heater

For Oil And Gas Water Heaters

GAS VS ELECTRIC Instant Hot Water Heater

365 days in a year 0.4105 therms/dayEF x fuel cost = estimated annual cost of operation

For example, if you have a natural gas water heater with an EF of 0.58 and a fuel cost of $0.00000109/therm, your annual cost of operation will be calculated as follows:

365 days in a year 0.4105 therms/day0.58 $1.09 = $282

Operating Expenses For A Tankless Water Heater

Gas Tankless Water Heaters

  • As a general rule, you can expect a gas tankless water heater to achieve an efficiency rating of 80 to 85%.
  • Fuel prices fluctuate, but currently the price of gas is lower than electricity. Because of this, gas tankless units are less expensive to operate.
  • One thing to keep in mind: As gas fuel prices rise, the price of operating a gas system will undoubtedly increase as well. An electric system could easily become more economical to operate because of their higher efficiency rating.

Electric Tankless Water Heaters

  • Efficiency ratings of 98 to 99% are consistently reached with electric tankless water heaters.
  • In many areas, gas prices far exceed the price of electricity. When this is the situation, an electric unit is more economical to operate.
  • The impressive energy efficiency of electric tankless water heaters will offset the higher fuel prices.

Rheem Gas Tankless Heaters

The Rheem RTGH-95DVLNis capable of delivering 9.5 gpm of piping hot water. This condensing indoor gas tankless water heater doesn’t require expensive venting and operates with 94% energy efficiency.

Gas Tankless Water Heaters

  • A gas tankless water heater can deliver a flow rate over 10 GPM.
  • If your household hot water demand is high, a gas system may be better suited to meet your needs.

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How Do Electric Tankless Water Heaters Work

Like gas tankless heaters, electric water heaters contain flow sensors that detect when hot water outlets in a home are turned on. This activates the ignition, which begins the electrical heating process.

Again, most electric heaters use a series of copper coils to transmit heat through the water supply. However, some smaller devices use infrared technology for super-fast contactless heating.

The best heaters contain a large number of coils coated in anti-corrosion materials to protect the unit from any minerals and metals that are dissolved in water.

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If You Decide For Gas Tankless Heater Make Sure You Have Access To Natural Gas Or Propane

Gas tankless water heater producers offer both natural gas and propane versions of heaters with roughly the same specifications. From the viewpoint of cost optimization, natural gas is usually a better choice because the cost of propane is usually twice that of natural gas. Here is a list of the best natural gas tankless water heaters.

Before buying one, however, make sure your household has access to natural gas or propane. All households have an existing electric grid. The accessibility of natural gas or propane is limited. Not every household has natural gas access.

If you dont have that access, its better to choose an electric tankless water heater.

Purchase Price And Installation


Storage tank: Tank style water heaters are less expensive than tankless. We paid $570 and $600 for the two 50-gallon Rheem tank water heaters we tested, but we have seen tank water heaters priced for less at home improvement stores. Tanks with larger capacity or energy-efficiency upgrades cost more.

Replacing your old storage tank with a new one of the same capacity is a pretty basic plumbing job, and some homeowners do it themselves. But most manufacturers recommend using a certified plumber, and you may need one because tank water heaters have changed, as noted, to meet tighter energy standards. Depending on what your plumber charges per hour, installation can be $600 to $800 if the existing hookups are compatible.

Tankless: Tankless water heaters tend to cost more up front than storage tank models. The nine models in our tests range from $525 to $1,150.

Installation will cost you moreat least $800 to $1,500, according to HomeAdvisor. Gas tankless models may have different venting and gas-supply requirements, meaning you may need to increase the diameter of the pipe from the water heater to the gas meter. And electric tankless models draw so much power120 to 160 ampsthat you may have to upgrade the electrical service to your house to 200 amps or more. Manufacturers recommend that certified electricians or plumbers install tankless water heaters. In fact, many manufacturers require installation by factory-trained professionals to maintain the warranty.

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Electric Vs Gas Tankless Water Heater: 7 Key Differences

Tankless water heaters can be powered by:

  • Electricity, or

Which one is better?

Both electric and gas tankless water heaters are good choices. They differ, however, in several aspects. Here are the main factors we need to take into account when deciding between electric vs. gas tankless water heaters:

Up to 0.89 EF Factor Up to 0.80 EF Factor
Cost Efficiency:

Here are the particular differences between electric and gas tankless hot water heaters:

  • Energy-efficiency. Electric tankless water heaters are, on average, more efficient. They can reach EF of 0.98, while gas-powered ones reach EF of 0.9.
  • Cost-efficiency. Prices of natural gas and propane are usually lower than the price of electricity.
  • Initial cost. Electric tankless heaters are more affordable the price range youre looking at is between $500 and $900. Gas heaters are pricier the best ones cost more than $1,000.
  • Installation. With electric ones, you will need a 150 A grid. With gas ones, you need access to natural gas or propane. Gas tankless water heaters are more difficult to install the installation costs are also higher.
  • Maintainance. Electric ones need very little maintenance the only real task is cleaning the inlet screen filter from time to time. On the other hand, gas ones require a trained technician to check it on regular time intervals because the explosive gases are needed to power the heater.
  • Weight. Gas tankless heaters can be several times heavier than electric counterparts.

Energy Savings And Efficiency

One of the main benefits of installing a tankless water heater is the energy savings they offer. However, its important to note that the efficiency and savings of a tankless water heater as the households hot water demands increase.

Even so, you can still expect a tankless hot water heater to out-perform a tank-style water heater when it comes to energy savings.

Water heaters, among other appliances, use an Energy Factor rating to measure the appliances efficiency.

What You Should Know About Energy Factor Ratings:

  • Energy Factor is a measurement of the water heaters overall efficiency.
  • The EF rating is determined by the useful energy thats coming from the water heater.
  • This number is then divided by the amount of energy that went into the water heater in order to heat the water.
  • The EF rating is based on the amount of hot water produced by one single unit of fuel consumed.
  • The higher the EF rating, the more energy efficient the water heater.

EF Ratings and Gas Tankless Water Heaters

The EF rating for tankless systems doesnt tell the whole story when it comes to operating costs.

Electric tankless water heaters have a higher EF rating than gas systems, but because gas is currently a less expensive fuel source than electricity, gas tankless heaters tend to deliver a lower annual operating cost.

This is why energy savings is just one factor you should consider when buying a tankless water heater.

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Installation Costs Of Gas Vs Electric

If youre going to hire a professional to install your tankless water heater, and you have a budget that you need to stick to, then electric wins this part of the competition.

Connecting an electric to the mains is not very difficult for an electrician to do. In most cases the water lines are the same width and are easy to connect.

Gas tankless water heaters on the other hand require more work. First, there are more safety issues to worry about when it comes to hooking up to the gas lines and meter.

Then, they need to be vented. They cant just be plugged into any old vent, either. A tankless water heater needs to be vented horizontally so in most cases a hole has to be made in the wall. This adds a bit to the labor costs.

And if it requires a stainless steel vent, then the kit for this can be expensive. Luckily there tankless water heaters that can use PVC which makes for an easier and less expensive installation.

Before you can decide which one is best you need to understand the costs of installation. To learn more about the cost and requirements to in

Tankless Water Heater Disadvantages

Electric vs. Gas Tankless Water Heater | Hot Water Heaters

As you can see, tankless water heaters have a lot going for them. However they do have drawbacks too. Here are a few of the disadvantages of owning a tankless system:

  • Initial Cost Expect to spend more money upfront when purchasing a tankless water heater. Its not uncommon for these appliances to cost as much as 3xs more than a tank-style water heater by the time you add in installation costs.
  • Power Upgrade Electric tankless water heaters require a lot of electricity to deliver hot water. Many homes, especially older homes, may not be able to support a tankless water heater without upgrading their homes electrical supply.
  • Expensive Venting Non-condensing gas fueled tankless water heaters require expensive category III venting material.
  • Output Limitations If the households hot water demands are higher than the systems capability, the appliance wont be able to deliver enough hot water. Without the benefit of a storage tank, a tankless water heater is only able to deliver as much hot water as it can heat at any one time. This is why properly sizing a new tankless system is critical.

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Energy Source & Operation Cost Calculations

Keep in mind that these rates may fluctuate and gas prices can be impacted by global politics and economic changes.

Here are some tips to help you calculate the costs.

I suggest using this sheet for the calculaton calculate for you

Most of the information needed for the sheet can be found in our product reviews here:

  • Know what the kWh/day will be

Should You Go Tankless Or Stay With A Traditional Tank Water Heater

This is a question for you to answer, and it depends on your set-up. If you need to relocate the gas unit toward exterior wall , just for venting, or need to install new 200 AMP electric panel, its probably more cost efficient to go with a tank.

If your current GAS tank is by the wall, where it can be vented outside, or you already have 200 AMP electric service your installation cost will be $1,000 $1500 lower, and then it makes sense to go tankless, from financial point of view.

Overall, there are many positive aspects to using an on-demand water heater. The main one is much lower energy cost compared to regular storage tank units you only make hot water when you need it not 24/7. Another one is a much longer typical life span of these units 15 years on average, vs 6 years for a basic tank.

However, you will quickly learn that the biggest negative aspect of a tankless water heater is the cost. These units will run you 40-200% more than a even high grade storage tank!

What did I do, when my old 40 gallon tank leaked?

I installed an new 50 gallon water tank! It was simply a matter of cost! Here is how I chose my water heater:

I didnt want to and really couldnt vent a tankless gas water heater outside and the only spot to place it was kind of crowded with other things. And it would cost me $2,000 more for a tankless unit!

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What Size Tankless Water Heater Do I Need

This is determined by a number of factors including the tankless water heaters GPM and the temperature rise you need. Calculate the heaviest household water usage and the temperature you want your water to be at. For example, if you are running a shower, a dishwasher, and a faucet at the same time and want to raise the groundwater temperature from 52 degrees to 110 degrees, then you would need a tankless water heater with a flow rate of 6 to 7 GPM.

Why Do You Recommend Purchasing A Condensing Gas Tankless System

Gas Water Heater or Electric

If youve decided to fuel your new tankless water heater with gas, then yes, we do recommend paying the extra money to buy a condensing system.

All gas tankless water heaters emit exhaust from the combustion process that occurs to generate heat. But how the appliances deal with the exhaust tells the whole story.

Non-Condensing systems vent the exhaust through expensive stainless steel venting pipes to the outdoors.

Where a condensing system uses a more sophisticated design that processes the exhaust internally, and what is left to exhaust, can be vented outdoors using PVC piping.

When selecting a gas tankless water heater you should always factor in the price to have it installed. As a general rule non-condensing tankless systems are less expensive to purchase and more expensive to install, where the reverse is true with a condensing system.

In the end, wouldnt you rather spend more money on a higher quality tankless appliance? and less money on installation? A better tankless water heater will provide far more advantages than expensive venting!

> > Check out top selling gas tankless water heaters < <

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Maintenance Of A Gas Water Heater

Gas water heaters are more complex. Guaranteeing their longevity first and foremost requires annual maintenance. Also, their care involves professionalism and special skills. In this case, it is necessary to have a maintenance contract or to contact an experienced heating engineer for an annual visit. However, maintenance can only be done as long as you turn off the electricity and close the water shut-off valve and the gas valve. The valve and the water inlet seal must be replaced every year. To clean the fins of the heating body, a soft wire brush is necessary.

The Disadvantages Of A Tankless Water Heater

  • Cost of the device: two to three times higher than that of a conventional water heater
  • Installation cost: can easily reach $ 2000, especially if it is necessary to modify the electrical input
  • Economic return: energy savings may not justify purchasing and installation expenses
  • Temperature variations: The water temperature could vary depending on cold weather or the use of more than one faucet at a time.
  • In an old building, the modifications required are not worth the effort. Itâs not just a question of electrical input or gas connection. For the instant water heater to provide a pleasant performance, all faucets should have water savers, which reduces the flow.

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Electric Vs Gas On Demand Water Heater: Buying Guide

Electric units are totally different from gas heaters. The only common thing they share is that they both produce warm water.

While buying a tankless machine, you have to consider lots of things, and your ultimate goal should be to buy the best type of device to meet your house needs.

Here we will compare both types of units so that you can see how they are different and similar to each other in each group.

When Is Electric Recommended

Gas Water Heater vs. Electric Water Heater

An electric heater is recommended when your home is already set up for an electric water heater, even if you currently have a tank heater. This is because it tends to be quite complicated to switch from electric to gas. An electric heater is also the better option if youre looking to set up your heater immediately without a large expense. Youll save money on both the purchase and the installation. Finally, its ideal if you want a heater for point of use or if your house or condo has smaller water demands.

The only major negative with choosing an electric tankless heater compared to a gas version is the hot water output capacity. Electric models simply cant produce as much hot water as tankless gas units.

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Pro: Gas Heaters Can Have A Higher Capacity

Gas water heaters can have a much higher capacity than electric heaters. Most gas heaters provide you with at least 8 gallons of hot water per minute expressed as 8 GPM. Propane heaters can provide as much as 11 GPM and natural gas as much as 10.6 GPM. This is more than enough to meet the needs of the average household, and its excellent if you need plenty of hot water.

This is the reason why most houses with higher water demands decide to choose a whole house gas tankless water heater instead of electric. Gas is just more powerful and the ideal option if you live in a colder climate or have a larger house and want a single heating unit.

Energy Usage Of Water Heaters

According to Natural Resources Canada, on average 19% of the energy used in Canadian homes comes from the water heater – regardless of whether you have an electric vs. gas water heater.

The typical water heater holds anywhere from 151 litres to 227 litres of hot water. When you turn on hot water from the tap, hot water exits the water heater and is replaced by cold water at the bottom of the tank.

However, a couple of showers or one full bathtub is enough to deplete your water heater of hot water completely. You could be spending your time waiting for your water heater to start dispensing hot water again.

Water heaters can be powered by natural gas, propane, fuel oil, or electricity. It can be expensive to cycle water throughout the day when people in your household take a shower or run the water. Expenses can also increase due to standby heat loss, which is caused when the hot water in the tank drops below a certain temperature. Choosing the right energy plan, can help you manage these energy costs.

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