Is Electric or Gas Water Heater Better for Your Home?

Deciding between electric or gas water heater is essential for finding the right fit for your home. This article explores the differences between heaters powered by natural or propane gas and electricity, outlining their benefits, pros, and cons.

When choosing a water heater for residential use, two key factors are the energy source—gas or electric—and the technology they use to heat, whether it is tank or tankless.

Electric or Gas Water Heater? Exploring Pros and Cons

For better understanding and easier selection, we will compare gas vs. electric water heaters, including benefits and drawbacks, cost comparison, energy efficiency, selection options, main elements, and how they work.

Pros of Electric Water Heaters

• Affordable
• Various types available
• Wide range of sizes
• High efficient operation
• No venting required
• No gas piping required
• Clean
• Easy installation
• Safe
• It can be installed anywhere, including tight spaces
• Easier repairs

Cons

• Not Energy Star approved (except hybrid heat pumps)
• High operating costs
• Long recovery times
• Slow heating
• Does not work during power outage
• May require upgrades to wiring and electrical panels

Pros of Gas Water Heaters

• Delivers more power than electric models
• Heats water quickly
• Faster recovery
• Some models are Energy Efficient
• Advanced electronics and diagnostics available

Cons

• Higher upfront and installation costs
• Gas emissionsLess safe than electric units
• Natural gas is less widely available than electricity
• Venting required
• Requires more space for installation

Side-by-Side Comparison

Type	Gas water heaters	Electric water heaters
Recovery rate	+	–
Energy Star	+	–
Initial price	–	+
Operating costs	+	–
Easy to install	–	+
Easy to fix	–	+

Which Is Cheaper to Run?

Gas-powered water heaters utilize powerful burners to heat water quickly. Since gas is generally cheaper, gas water heaters have lower operating costs than electric models.

Electric water heaters, however, have a lower initial and installation cost. Gas models require a venting system and gas supply line, making them more expensive to install and maintain.

Electric models are versatile and can be installed almost anywhere, including point-of-use locations. In contrast, gas units need specific installations, such as a vent system, sufficient air draw, and a gas line, increasing the overall cost.

If natural gas isn’t available, propane is a viable option. While propane is less expensive than electricity, it’s costlier than natural gas and requires storage and regular fuel delivery, raising expenses.

How Much Does a Water Heater Really Cost?

Water tank heaters come in different sizes, from 30 to 100 gallons, and the larger the tank is, the more you will pay. Expect to pay between $300 for the smallest basic model to over $1500 for the large advanced model, such as hybrids.

Electric water heaters with a capacity of 50 gallons will cost you from $400 and between $600 and $3500 to install (materials and labor).

Gas models will cost you more than electric for the same tank size; over $500 to buy, and from $700 to $2700 on average for installation (materials and labor).

In general, electric models cost $100 – $200 less than gas water heaters, while installation costs much more due to gas hookup and venting installation.

Note that the average plumbers’ labor rates are around $150, while electricians’ rates are approximately $100, but it depends on the region and availability.

Which Is More Efficient: Gas or Electric Water Heater?

The Energy Factor (EF) rating is a key metric when choosing a water heater. Models with higher EF ratings are typically Energy Star compliant, offering lower operating costs and environmental benefits through reduced gas emissions. In some cases, utility companies may provide incentives or tax breaks for purchasing high-efficiency models. Generally, the higher the EF, the more efficient the water heater, but…

Gas water heaters typically have EF ratings ranging from 0.57 to over 0.9 for condensing models. An EF of 0.67 or higher is required to meet Energy Star standards. In comparison, electric water heaters often have EF ratings over 0.9 but are not Energy Star approved, except for certain advanced models.

Electric heat pumps or hybrid models are the only electric-powered units that meet Energy Star requirements. These combine heating elements and heat pumps, achieving greater efficiency and lower energy costs than conventional gas-fired models, though they come at a higher upfront cost.

Comparing Recovery Rates

The recovery rate (measured in gallons per hour or GPH) is a critical factor when selecting a water heater, as it determines how quickly hot water is replenished.

• Electric models: Most 50-gallon units offer a recovery rate of approximately 20 GPH.
• Gas models: These generally provide faster recovery, averaging around 40 GPH (at 90°F rise) for the same tank size.

Gas-powered models operate with burners ranging from 30,000 to 180,000 BTUs, delivering faster heating as BTU output increases. Electric models rely on heating elements with power ratings between 1,440 and 5,500 watts, which are typically slower at heating water.

Which Is More Advanced: Gas or Electric?

Advanced gas water heaters use a gas control valve that ensures more reliable and precise performance, better temperature control, and faster hot water recovery. These valves often feature LCD displays or LED indicators to provide status updates, error codes, and other useful information.

Certain gas models, like direct-vent units equipped with thermopiles, do not require electric power, ensuring they remain operational during outages. Conversely, electric water heaters rely entirely on electricity—without it, no hot water is available.

Heat pumps are the most advanced electric water heaters, offering smart features comparable to those in premium gas models.

Gas water heaters typically outperform electric models in recovery rates but can be less efficient if they include a pilot light, which consumes energy even when not actively heating water.

Anatomy of Gas and Electric Water Heaters

When comparing gas and electric water heaters and reviewing their components, gas models are noticeably more complex and, as a result, more expensive.

Both types share key parts like the anode rod, ceramic/glass lining, dip tube, and TPR valve. However, their primary difference lies in how they heat water.

Installing an electric tankless water heater in an older home may require replacing the entire wiring system and electrical panel to handle the higher amperage.

Gas units, on the other hand, need a gas line, gas control valve, gas burner with a combustion chamber, pilot light or electrode, thermocouple, and a venting/exhaust system. In contrast, electric units rely on simpler components, needing only heating elements and thermostats to heat the water.

A Wider Range of Gas-Powered Water Heaters

Gas-powered water heaters come in a greater variety than electric models. Types include:

• Atmospheric vent
• Direct vent
• Power and Power-Direct vent
• Ultra-Low NOx
• Flue Damper
• Condensing
• Units with pressurized combustion chambers, such as the State high-efficiency models

Which Is Safer: Gas or Electric Water Heaters?

When it comes to safety, electric water heaters are generally considered safer than gas water heaters.

Electric units do not produce combustion gases, eliminating the risk of gas leaks, carbon monoxide poisoning, or fire hazards associated with gas-powered models. They also don’t require venting systems, reducing the potential for vent blockages that could cause dangerous emissions.

However, electric models can pose a risk if the water level drops too low, causing the heating elements to burn out.

On the other hand, gas water heaters require careful installation of a venting system to expel combustion byproducts, which, if improperly installed or maintained, can lead to hazardous gas buildup.

Gas models also have a higher risk of leaks, pilot light malfunctions, or gas line issues. While gas heaters tend to heat water faster, their complexity and need for a proper venting system make them less safe overall compared to electric water heaters.

How They Work and What Sets Them Apart

Both gas and electric water heaters typically use a storage tank to hold heated water. Gas models use a burner to heat the water, while electric models employ one or two heating elements (electric resistance coils).

Gas units utilize a gas control valve with an integrated thermostat to regulate gas flow and temperature. Electric units, in comparison, rely on thermostats attached to the heating elements. Gas burners can be ignited manually using a piezo igniter or a hot surface igniter.

Unlike electric models, gas water heaters require vents to expel combustion byproducts. These vents can be direct power, power-direct, or atmospheric types.

It’s worth noting that some gas water heaters can operate without electricity, making them a reliable choice during power outages.

Electric or Gas Water Heaters? Which One to Buy?

When deciding between gas or electric water heaters, the choice often depends on your location and energy access. In the US and Canada, natural gas is typically the most cost-effective option for heating water. If it’s available in your area, a gas water heater offers significant long-term savings due to lower operating costs. For rural areas without natural gas, propane or electric models are viable alternatives, propane costing more and being less convenient.

If you choose gas, consider condensing models like the AO Smith Vertex or Polaris for maximum efficiency.

On the other hand, electric water heaters are ideal if gas is unavailable or if you want to avoid higher upfront costs. Opt for a heat pump model with Energy Star certification to benefit from daily energy savings, government tax credits, and utility rebates.