Indoor Gas Tankless Water Heaters vs Electric Tankless Water Heaters

Residential Gas Tankless Water Heaters vs Electric Tankless Water Heaters

--When it comes to providing hot water on demand, tankless water heaters have gained immense popularity among homeowners. They offer the advantage of unlimited hot water without the need for bulky storage tanks. However, when deciding between a residential tankless gas water heater and an electric tankless water heater, there are important factors to consider. In this blog post, we'll explore the key differences between these two types of tankless water heaters to help you make an informed decision for your home.

  • Energy Efficiency:

One crucial aspect to evaluate when choosing a tankless water heater is energy efficiency. Gas-powered tankless water heaters have traditionally been known for their higher efficiency compared to electric models. Natural gas or propane fuels these units, and they use a burner to heat the water. As a result, gas tankless water heaters generally have higher flow rates and can handle simultaneous hot water demands efficiently.

Electric tankless water heaters, on the other hand, utilize electric elements to heat the water directly. While they have made advancements in efficiency over the years, they may not provide the same level of energy savings as gas models, especially in high-demand scenarios. However, electric tankless water heaters have the advantage of being more energy-efficient than traditional storage tank water heaters.

  • Installation and Initial Cost:

The installation process and initial cost are significant considerations when comparing gas and electric tankless water heaters. Gas models often require professional installation due to the need for proper venting and gas line connections. This can result in higher installation costs, especially if your home doesn't already have a gas line available. Additionally, gas tankless water heaters typically have a higher upfront cost than electric models.

On the other hand, electric tankless water heaters are generally easier to install since they don't require venting or gas line connections. This can translate into lower installation costs, particularly if you already have an electrical supply in place. Electric models also tend to be more affordable upfront compared to their gas counterparts.

  • Operating Costs:

Apart from the initial cost, it's essential to consider the long-term operating costs associated with your choice of tankless water heater. Gas tankless water heaters may have lower operating costs due to the typically lower cost of natural gas or propane compared to electricity. However, this can vary depending on the local utility rates and the efficiency of the unit.

Electric tankless water heaters, while potentially having slightly higher operating costs, often make up for it with lower maintenance requirements and longer lifespans. Electric units don't have burners or combustion components that may require regular maintenance or replacement, unlike gas models. Furthermore, the absence of a pilot light in electric models contributes to reduced standby energy losses.

  • Environmental Impact:

Sustainability and environmental impact are crucial considerations for many homeowners. Gas tankless water heaters produce greenhouse gas emissions due to the combustion process involved. While they are generally more efficient than their storage tank counterparts, they still contribute to carbon dioxide emissions.

Electric tankless water heaters produce zero emissions at the point of use since they don't burn fuel. However, it's essential to consider the source of the electricity powering the unit. If your electricity is sourced from renewable energy, such as solar or wind, electric tankless water heaters can be an eco-friendly choice.


Choosing between a residential tankless gas water heater and an electric tankless water heater depends on several factors, including energy efficiency, installation costs, operating costs, and environmental considerations. Gas tankless water heaters often offer higher efficiency and greater capacity for simultaneous hot water demands, while electric tankless water heaters are generally easier to install and have lower upfront costs.

Ultimately, the decision should align with your specific needs and circumstances. Consider factors such as the availability and cost of gas or electricity, your hot water demand, and your long-term sustainability goals. Consulting with a professional plumber or heating specialist can also provide valuable insights to help you make the right choice for your home.


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