Electric VS. Gas Tankless Water Heaters: Which One Should You Choose?

In the quest for energy efficiency and cost savings, tankless water heaters have emerged as a popular choice among homeowners. Unlike traditional water heaters that store and constantly heat a large volume of water, tankless water heaters heat water on demand, offering a continuous supply of hot water without the standby energy losses. However, a critical decision in choosing a tankless water heater is whether to go with an electric or gas model. Each type has its advantages and disadvantages, and the best choice depends on various factors including your home’s infrastructure, energy costs, and personal preferences. This comprehensive guide will help you understand the key differences between electric and gas tankless water heaters and assist you in making an informed decision.

Overview Of Tankless Water Heaters

Tankless water heaters, also known as on-demand or instantaneous water heaters, heat water directly without the use of a storage tank. When a hot water tap is turned on, cold water travels through a pipe into the unit, where it is heated either by a gas burner or an electric element. As a result, tankless water heaters deliver a constant supply of hot water. You don’t need to wait for a storage tank to fill up with enough hot water. However, the output of a tankless water heater is limited by its flow rate.

Electric Tankless Water Heaters

How They Work

Electric tankless water heaters use electric elements to heat water. When hot water is needed, cold water enters the unit and flows through a heat exchanger. The electric elements quickly heat the water as it passes through, providing hot water on demand.

Pros Of Electric Tankless Water Heaters

1. Lower Initial Cost: Electric tankless water heaters typically have a lower upfront cost compared to gas models. They are simpler in design and easier to install, making them a cost-effective option for many homeowners.
2. Easy Installation: Installation of an electric tankless water heater is generally straightforward, especially if your home already has sufficient electrical capacity. There’s no need for venting, which simplifies the process.
3. Energy Efficiency: Electric models are highly efficient, often boasting energy efficiency ratings of 98-99%. They don’t lose heat through exhaust gases, making them more efficient in converting energy into hot water.
4. Compact Size: Electric tankless water heaters are usually smaller and lighter than gas models, making them easier to install in tight spaces.
5. Low Maintenance: These units typically require less maintenance since they don’t involve combustion and the associated risks of gas leaks or venting issues.

Cons Of Electric Tankless Water Heaters

1. Higher Operating Costs: Depending on the cost of electricity in your area, operating an electric tankless water heater can be more expensive than a gas model. Electricity prices tend to be higher than natural gas prices.
2. Electrical Requirements: Electric tankless water heaters require a significant amount of electrical power. Upgrading your home’s electrical system to accommodate the heater can be costly if your existing system is inadequate.
3. Flow Rate Limitations: Electric models often have lower flow rates compared to gas models, which can be a limitation if you have a large household with simultaneous hot water demands.

Gas Tankless Water Heaters

How They Work

Gas tankless water heaters use a gas burner to heat water. When hot water is needed, cold water flows through a heat exchanger that is heated by the gas burner. The heated water then travels to the tap, providing hot water on demand.

Pros Of Gas Tankless Water Heaters

1. Higher Flow Rates: Gas tankless water heaters generally have higher flow rates compared to electric models, making them suitable for larger households with multiple simultaneous hot water demands.
2. Lower Operating Costs: In areas where natural gas is less expensive than electricity, gas tankless water heaters can be more economical to operate.
3. Reliable Performance In Cold Climates: Gas models tend to perform better in cold climates, where incoming water temperatures are lower. They can heat water more quickly and efficiently under these conditions.

Cons Of Gas Tankless Water Heaters

1. Higher Initial Cost: Gas tankless water heaters typically have a higher upfront cost compared to electric models. This includes the cost of the unit and the installation, which may involve complex venting requirements.
2. Ventilation Requirements: Gas units require proper ventilation to expel combustion gases. This can complicate the installation process and increase costs.
3. Maintenance Needs: Gas tankless water heaters require more maintenance due to the combustion process. This includes regular inspections and cleaning to ensure safe and efficient operation.
4. Size And Weight: Gas models are usually larger and heavier than electric units, which can limit installation options.

Key Factors To Consider

1. Energy Source Availability

The availability and cost of electricity and natural gas in your area can significantly influence your decision. If your home is not connected to a natural gas line, installing a gas tankless water heater might be impractical and costly. On the other hand, if electricity costs are high, operating an electric unit might not be economical.

2. Initial And Operating Costs

Consider both the upfront cost of the unit and installation, as well as the ongoing operating costs. Electric tankless water heaters generally have a lower initial cost but may be more expensive to operate depending on local electricity rates. Gas units, while more expensive to purchase and install, can offer lower operating costs in areas with affordable natural gas.

3. Hot Water Demand

Evaluate your household’s hot water needs. Gas tankless water heaters typically offer higher flow rates and are better suited for large households or homes with high simultaneous hot water demands. Electric models may be sufficient for smaller households or single-use applications.

4. Installation Complexity

Installation requirements can vary significantly between electric and gas units. Electric tankless water heaters are generally easier and less expensive to install, especially if your home has adequate electrical capacity. Gas units require venting and potentially more extensive modifications to your home’s infrastructure.

5. Environmental Impact

Consider the environmental impact of your choice. Electric tankless water heaters are highly efficient and don’t produce emissions during operation. However, the environmental impact depends on how your electricity is generated. If your local grid relies heavily on fossil fuels, the overall environmental benefit might be less significant. Gas units, while efficient, produce emissions during combustion.

6. Maintenance And Longevity

Think about the long-term maintenance and durability of the unit. Gas tankless water heaters require more frequent maintenance due to the combustion process, including venting system checks and burner cleaning. Electric units generally have fewer maintenance needs but require periodic descaling to prevent mineral buildup.

Conclusion

Choosing between an electric and gas tankless water heater involves careful consideration of various factors, including your home’s infrastructure, energy costs, and hot water demand. Electric models are typically easier and cheaper to install, highly efficient, and have lower maintenance requirements. However, they may have higher operating costs and lower flow rates. Gas units, while more expensive and complex to install, offer higher flow rates and potentially lower operating costs in areas with affordable natural gas.

Ultimately, the best choice depends on your specific circumstances and priorities. By evaluating the pros and cons of each type and considering the key factors discussed, you can make an informed decision that best meets your needs for efficiency, cost, and performance.