Electric vs. Gas Tankless Water Heaters

Tankless water heaters (also known as on-demand heaters) provide hot water only as it is needed. They don’t come with the usual standby energy costs associated with storage heaters – and this ultimately saves you money in the long term. This article discusses both gas and electric tankless water heaters and draws comparisons to help you decide which one suits you best.

How Tankless Water Heaters Work

A tankless heater heats up the water directly as it runs through the pipe without the use of a storage chamber. When you turn on the hot water tap, water runs through the unit, and a gas burner or electric mechanism heats the water as it flows, and this allows it to deliver hot water constantly as needed.

One main benefit here is that you don’t have to wait until a heating chamber is full of hot water before you can use it. On the downside, most tankless water heaters have shorter output limits, which means they can’t support multiple users at the same time (e.g., shower and dishwasher). If, however, your unit can’t supply enough water for parallel simultaneous demands, you have the option of installing a second unit to supply water for the kitchen or bathroom.

Why Install a Tankless Heater?

For a home that uses 41 gallons (or less) of water daily, this type of water heater can save between 20%-30% more energy than a traditional storage-tank water heater can. If your home uses around 80 gallons of water per day, it can reduce water heating costs by about 10%. Not surprisingly, if you read electric tankless water heater reviews, like the ones you find at 2 RED Ltd, this is one of the major reasons most people want to install tankless water heaters. 

Furthermore, homes that have a dedicated on-demand water heater for each hot water outlet typically save between 30% and 50% in energy costs.

Keep in mind that it takes more money to install a tankless water heater but the long-term costs of running a tankless unit are lower compared to the other water tank variety. On average, a tankless water system has a life expectancy of over 20 years, and most have easily replaceable parts that help to extend the unit’s life by a decade or more.

Compare Electric vs. Gas Tankless Water Heaters

For a homeowner looking to install a water heater, there is no single answer as to which one is better; however, there are a number of factors that can help you to decide which one is best suited for your needs. These are the main factors to consider:

a) Availability of natural gas or propane and/or sufficient electrical supply to support high water output

b) Differences in cost between an average-sized gas and electric tankless heater

c) The relative cost of installation

d) Water usage needs and habits

e) Homeowner’s preference

f) Electricity costs in your area and how it compares to gas costs

Installation of Gas vs. Electric Tankless Water Heater

A gas tankless heater requires complex venting and air supply requirements, particularly when installed in a smaller space. Keep in mind that existing gas lines and venting duct may not be enough to sustain a gas heater – and also, side wall venting may be necessary. Overall, they cost more money to install. However, once you do get one installed, FSi Oil and Propane are a reputable company that will deliver propane for your heater.

On the other hand, electric tankless heaters are smaller and can be fitted in a confined space. They don’t need exhaust pipes or ventilation either, and they can be installed in areas that wouldn’t be feasible to install a gas heater. In other words, electric tankless water heaters can be installed at their point of use (e.g., under a sink or crawl space), and they cost less to install when compared to gas heaters.

Efficiency vs. Operating Costs

While it is true that gas tankless heaters are more efficient than tank heaters, they only have about 80-85% efficiency, compared to electric heaters which peak at about 98%+ efficiency. The main drawback of electric tankless water heaters is the higher energy cost. Natural gas is cheaper when used to operate a water heater, however, factors like installation costs, efficiency, maintenance, and service life must also be considered.

Ultimately, your water usage habits will help you determine which unit is best for your home – but generally speaking, a tankless heater is ideal for the environment, if only because it produces hot water only when needed, and this reduces energy consumption significantly.

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