Gas vs Electric Tankless: Which Heater is Best For You?

Selecting a water heater often presents homeowners with the complex decision of fuel source. Energy efficiency becomes a crucial factor when considering Rheem Manufacturing's gas models versus those powered by electricity. Understanding the average household's hot water demand is key to determining which is better gas or electric tankless water heater. This analysis will provide objective comparisons, allowing consumers to make an informed choice aligned with their individual needs and priorities.

Image taken from the YouTube channel Monkey Wrench Trades Network , from the video titled Gas VS Electric Tankless Water Heaters .
Gas vs. Electric Tankless Water Heaters: Finding the Right Fit
Deciding "which is better gas or electric tankless water heater" depends heavily on individual circumstances. This article outlines the key differences, benefits, and drawbacks of each type, allowing you to make an informed decision tailored to your needs.
Understanding Tankless Water Heaters
Tankless water heaters, also known as on-demand water heaters, heat water directly without using a storage tank. When a hot water tap is turned on, cold water travels through the unit. A gas burner or electric element heats the water. They only provide hot water when needed, reducing standby heat loss associated with traditional tank water heaters.
How They Work: A Quick Comparison
- Gas Tankless: Uses a powerful gas burner to heat the water. Requires a gas line and venting system.
- Electric Tankless: Uses high-powered electric heating elements to heat the water. Requires substantial electrical capacity.
Key Considerations for Choosing a Tankless Heater
Several factors play a significant role when deciding between gas and electric tankless water heaters.
Upfront Costs
- Electric: Typically, the unit itself is less expensive than a gas tankless model.
- Gas: The units are more costly, but the overall cost, including installation, can vary widely.
Installation Requirements
- Electric: Usually simpler installation, particularly if you are replacing an existing electric water heater and the electrical infrastructure is adequate. Requires significant amperage and may necessitate electrical panel upgrades.
- Gas: More complex installation, requiring gas line connections, venting, and potentially a professional plumber. Venting costs can fluctuate significantly depending on existing infrastructure and local building codes.
Operating Costs
- Electric: Electricity rates are often higher than natural gas prices, which can lead to higher monthly operating costs, especially with frequent hot water usage.
- Gas: Natural gas is often cheaper than electricity, which can result in lower monthly operating costs. This advantage can be eroded if the unit is inefficient.
Flow Rate and Capacity
- Electric: Can sometimes struggle to provide a high flow rate of hot water, especially for multiple simultaneous uses (showers, dishwashers). Models with higher amperage capabilities address this issue, but at a higher cost and increased electrical demand.
- Gas: Generally offers higher flow rates, capable of handling multiple simultaneous uses more effectively. Look for a BTU (British Thermal Unit) rating suitable for your household's hot water demand.
Energy Efficiency
- Electric: High energy efficiency rating due to no standby heat loss. Modern electric tankless heaters boast impressive Energy Factor (EF) ratings.
- Gas: Also eliminates standby heat loss, but the overall efficiency depends on the unit's Energy Factor (EF). Look for models with higher EF ratings.
Venting Requirements
- Electric: Does not require venting, which simplifies installation and eliminates potential safety concerns related to exhaust gases.
- Gas: Requires proper venting to safely exhaust combustion gases (carbon monoxide). Different types of venting are available (direct vent, power vent), each with varying installation costs and complexities.
Lifespan and Maintenance
- Electric: Generally have a longer lifespan compared to gas models due to fewer moving parts and less susceptibility to corrosion from combustion byproducts.
- Gas: Proper maintenance, including regular cleaning and descaling, is crucial to maximize lifespan.
Comparing the Pros and Cons
Feature | Electric Tankless | Gas Tankless |
---|---|---|
Upfront Cost | Lower | Higher |
Installation | Simpler (potentially requires electrical upgrades) | More Complex (gas line, venting) |
Operating Cost | Potentially Higher (dependent on electricity rates) | Potentially Lower (dependent on natural gas prices) |
Flow Rate | Can be limited, especially for simultaneous use | Generally Higher |
Efficiency | High | High (look for high EF rating) |
Venting | No Venting Required | Venting Required |
Lifespan | Generally Longer | Shorter (requires regular maintenance) |
Determining Your Needs
Consider the following factors when making your choice:
- Household Size and Hot Water Demand: How many people live in the house and how often do they use hot water simultaneously?
- Existing Infrastructure: Is there already a gas line available? What is the electrical panel's capacity?
- Local Energy Costs: Compare electricity and natural gas rates in your area.
- Budget: Consider both upfront costs (unit and installation) and long-term operating costs.
- Space Constraints: Tankless heaters are compact, but proper space is still needed for installation and maintenance access.
Video: Gas vs Electric Tankless: Which Heater is Best For You?
FAQs: Gas vs Electric Tankless Water Heaters
Tankless water heaters offer on-demand hot water, but choosing between gas and electric can be tricky. Here are some frequently asked questions to help you decide.
What are the main differences between gas and electric tankless water heaters?
Gas tankless heaters use natural gas or propane to heat water, requiring a gas line and venting. Electric tankless heaters use electricity, needing high voltage electrical circuits. Gas generally offers higher flow rates, while electric units are often smaller and easier to install where the electrical capacity is sufficient.
How does cost factor into the decision?
While electric units might have a lower initial purchase price, installation costs can be higher if you need to upgrade your electrical panel. Gas units have higher installation costs due to gas line and venting requirements. Ultimately, long-term costs depend on usage, local energy prices, and which is better gas or electric tankless water heater for your specific needs.
Is one more energy efficient than the other?
Electric tankless heaters boast nearly 100% energy efficiency because very little heat is lost during operation. Gas units are usually between 80-90% efficient, due to heat loss through venting. However, this doesn't automatically mean electric is cheaper, as electricity rates are often higher than natural gas prices.
Which type is better for my home's specific needs?
Consider your hot water demand and existing infrastructure. If you need to run multiple hot water appliances simultaneously, a gas tankless might be better due to its higher flow rate. If you have limited space or already have adequate electrical capacity, an electric unit might be more suitable. Deciding which is better gas or electric tankless water heater ultimately depends on individual circumstances.