Gas and electric water heaters have key differences you'll want to consider before making a purchase
Gas water heaters have lower operating costs than electric.
Electric water heaters are easier to maintain than gas.
Gas water heaters pose more safety risks than electric.
Gas water heaters' higher capacities and faster heating times make them ideal for large households.
If you’ve ever had to go without hot water in your home, you’ll know how important having a well-functioning water heater is. If it’s time to replace your existing water heater, you may wonder whether you should stick with the type you already have or go with something else.
Gas and electric are the main types of water heaters available, and they have some key differences in terms of their operation, costs, and efficiency. Understanding more about their pros and cons will help you decide which type of water heater is better for your home.
Gas water heaters use natural gas or propane to heat water. They typically comprise a water tank, burners, and a heat exchanger that moves heat from the burner flame to the water. Once the water heats up, it's distributed through the home for washing or central heating.
Fast heating times
Relatively low operational costs
Often functional during power outages
High heating capacity ideal for large households
Takes up more space than electric water heaters
Pose gas leak risks
More challenging to install than electric water heaters
Cost more upfront than electric water heaters
Higher maintenance than electric water heaters
Electric water heaters use electricity to heat water. They usually comprise a water tank and one or several electric resistance coils that sit directly in the tank. Once electricity passes through the coils, they heat up the water before it's distributed throughout the house.
Easier to install than gas water heaters
Fewer safety concerns than gas water heaters
Relatively compact
Lower maintenance than gas water heaters
Lower upfront costs than gas water heaters
Slower heating times than gas water heaters
Higher operational costs than gas water heaters
Won't work during power outages
Often have smaller capacities than gas water heaters
Gas and electric water heaters both supply hot water to your home. The gas variety provides the heat by burning fuel provided through a gas line, and the electric type generates the heat through electric resistance coils. Electric water heaters are usually a little smaller than their gas counterparts.
Gas and electric water heaters both have their own distinct advantages, but which is better will depend on the home they are being used in and what the user considers to be important.
Water heater installation costs depend on the type of water heater, but most typical gas and electric water heaters will run between $550 and $1,500, fully installed. Electric water heaters tend to be slightly less expensive, both for the unit and the labor—but only by $100 to $200. (Note: Heavy-duty units, including gas and electric water heaters, can cost significantly more than $1,500, because of a higher unit cost and a more challenging install).
That said, you’ll spend significantly more money if you’re switching from electric to gas or vice-versa. Converting to an electric water heater likely means you’ll need to hire a local electrician to upgrade the electric panel while switching to a gas water heater could mean you need a plumber to install a gas line. Installing a gas line costs between $260 and $820.
Although a gas water heater may be more expensive upfront than an electric water heater, gas units are generally more efficient and thus less expensive to run, leading to cost savings over time. However, keep in mind that operating costs can vary based on fluctuating electric and natural gas prices in your area.
The U.S. Department of Energy states that water heaters account for around 18% of the average home’s energy use. Of course, you can reduce your bills by simply cutting back on water, but the type of water heater can also make a big difference when it comes to energy efficiency.
Look for an energy factor (EF) rating. Selecting a higher EF rating means you’ll have a more energy-efficient unit. Certain units can be particularly energy-efficient, including electric heat pump and tankless systems. While they can be much more energy-efficient than a standard water heater, they’re more expensive to buy and install. Plus, they don’t work well in areas that experience extreme changes in temperatures.
Also referred to as point-of-use (POU) water heaters, tankless water heater systems are available in electric and gas models. They’re more energy-efficient than standard tank-based systems that continually heat your water. So much so that the average household can save up to 35% in energy, meaning that tankless water heaters are well worth the cost for many families.
Tankless water heating systems aren’t without their drawbacks, though. These systems can cost up to $3,000 and have more complicated installations. It’s also easier to run out of hot water with these types of systems.
Electric tankless units are less expensive than gas ones, but you’ll probably see more savings over time on your monthly bills.
Electric water heaters beat gas varieties when it comes to the installation process. Plus, they take up less space than a gas tank will. However, since electric work is required, it’s best to leave installation up to a professional.
Gas water heaters need a local water heater contractor to install them—dealing with gas lines and venting are significant safety concerns and not simple tasks.
If you haven’t had a gas water heater before, the installation process is even more complicated and expensive. It requires the running of a new gas line and the installation of proper venting. A straight swap may cost around $500 for the installation, but putting in a gas heater from scratch could end up costing you as much as $2,000. So unless you have a particular need, swapping out an electric system for a gas one isn’t recommended.
Although gas water heaters may need more maintenance over the years, there isn’t a great deal of difference in terms of their longevity. A well-maintained gas unit should last at least 10 years, and you may get a couple more years out of your electric system.
Tankless water heater systems can last at least 20 years. So although there are higher upfront costs for the unit and installation, you could get considerably more use out of the system. This is worth considering when making a final decision.
Whichever system you opt for, it’s good practice to have an annual maintenance check to help ensure your tank lasts as long as possible.
This may be splitting hairs, as the difference isn't substantial, but gas units usually produce heat more quickly than their comparable electric counterparts. This means the amount of hot water the system can provide in a given period (the recovery rate) is typically more for gas systems. They also perform better in their first hour of use (first hour rating).
Gas water heating systems carry greater risks than electric ones. Gas leaks, or even explosions, are a possibility, and you might want to install carbon monoxide detectors for peace of mind.
Electric water heaters are usually the more environmentally friendly option. They’re more energy-efficient and can use renewable energy sources such as solar, wind, or hydroelectric.
If you live in a region that experiences frequent power outages, a gas water heater is ideal since it can continue to heat water during an outage. However, some newer models use an electric starter, so if you're worried about outages, consider purchasing a gas water heater without an electric starter.
Electric water heaters are usually considerably smaller than gas units with a similar specification. This makes them a better choice if you have a small home or plan to install the unit in a tight space.
Electric water heaters are generally easier to maintain than gas water heaters, largely because they have fewer parts. Since gas water heaters rely on burning fuel, they have components that electric water heaters lack, such as gas valves, venting systems, and flame burners. More parts mean that there are more areas that can potentially malfunction or break down over time.
To make it easier for you to decide between a gas and an electric water heater, we’ve summarized the most suitable homes for each.
Since gas water heaters will be a good fit for:
Large households with multiple bathrooms and high hot water consumption
Colder climates since they heat the water up faster and have a stronger heating capacity
Anyone in a region with frequent power outages
If you want to take advantage of an existing gas heating system
Meanwhile, electric water heaters are suitable for:
Smaller households with more limited spaces but lower hot water consumption
Regions with a steady power supply
Milder climates
If you care about sustainability
If you don’t have an existing gas system in the house
Overall, the best water heater is one that meets your needs and works with your budget. Tankless water heaters, which come in gas and electric models, allow you to use a higher-capacity gas heater without needing too much space for the storage tank.
What if you don’t want to deal with all the information and comparison between gas and electric water heaters? You can always ask a contractor for their opinion. Before giving anyone a call, quickly look around your house: how many bathrooms do you have? How much hot water do you need daily? Do you already use gas in your home or is it all electric? Having these answers will help the pro to give you more accurate answers.
Make sure to also ask about the installation cost so you can factor that into your budget. Since most pros offer free inspection, you can ask them to look at your house and help you decide on site. Plus, many pros can get you better prices via industry wholesalers, distributors, and even the manufacturer of the water heater you choose.
The cost to switch from a gas to an electric water heater depends on your home's existing infrastructure. If you need to install new electric circuitry to handle an electric water heater's demands, the transition can get pretty pricey. Plus, electric water heaters have higher operating costs than gas, which will drive up your long-term energy bills.
Electric water heaters use quite a bit of electricity, especially if they're not energy-efficient models. But you can minimize how much electricity they use by reducing the temperature, insulating the unit, and performing regular maintenance to ensure the water heater operates as efficiently as possible.
Converting a gas water heater to an electric one can cost between $870 and $4,100, depending on the installation scope, plumbing and electrical needs, and the water heater model. However, it’s always better to contact a local pro for a more accurate quote. Also, since natural gas is cheaper than electricity in most regions, you should prepare yourself for a higher monthly cost after the initial conversion.
