Home ยป Gas vs. Electric Tankless Water Heater: Elements to Consider

Gas vs. Electric Tankless Water Heater: Elements to Consider

Gas vs. Electric Tankless Water Heater

The discussion between gas and electric tankless water heaters is a conflict confronted by many consumers when shopping a tankless water heater. In some cases, the selection of two types of tankless water heater is easier, as it is based on the availability of natural gas or electricity in their homes. But, if your household can accommodate both types of water heater, you need to make a decision about other factors. Neither gas type nor electric type tankless water heater are superior. Your decision will be determined by your home and hot water needs, budget and preferences.

Price / Cost

Gas and electric tankless water heaters are significantly different in terms of cost, electric water heaters are much cheaper than gas water heaters. With just 500 dollars you can find a good quality electric tankless water heater. On the other hand, if you need an established brand gas tankless water heater, you can expect to spend about 1000 dollars. The model of the electronic ignition system and other bell and whistled gas water heaters cost even more.

The gas tankless water heater has high installation cost as well as retail price. Because the size is small and not complicated design, it is much easier to install an electric tankless water heater. They can also be installed in narrow spaces like sinks or closets or anywhere in the home. In contrast, gas tankless water heaters require more complex and expensive equipment. Gas water heater requires ventilation, gas supply, and other necessities for daily life.

Operating cost

Water heaters without gas tanks are currently cheaper to operate than electrical ones. In fact, this is one of the main reasons consumers choose gas-less water heaters. They expect to collect the purchase and equipment costs in a saved amount from the operational costs. However, you also need to be aware that the price of natural gas and electricity will vary depending on your location. If your area has limited supply of natural gas, it will automatically cost more than electricity. It is also worth mentioning that natural gas is not cheaper than electricity in the long run. Unlike stable electricity prices, natural gas costs are expected to rise in the future.


Gas water heaters require an annual inspection by licensed engineers to ensure that their performance is efficient and safe. In addition to occasional (and optional) cleaning of the inlet screen filter, most electric tankless water heaters do not require maintenance.