Gas water heaters are much less expensive to operate long term. Overall, you'll likely spend less money running a gas water heater than using an electric water heater. Still, because the costs of both natural gas and electricity vary by region, you should compare the price of each before making your final decision.
Many people find that the highest amount of savings comes from daily operating costs in gas vs. electric water heaters. Energy-efficient gas water heaters generally cost less to operate than electric heaters, but your water consumption needs may change your overall operating expenses.
The disadvantages to a water heater fueled by electricity are: Usually has a more expensive maintenance cost. Won't work during power outages unless there is a power source. Heats less water per hour.
Tankless water heaters are more efficient than tank water heaters. Tankless water heaters last longer, so you'll save money by not replacing them. In general, gas water heaters are cheaper on a monthly basis than electric heaters.
While today's water heaters are better designed than older models, they still require regular maintenance in order to prolong their lives. With regular inspection, draining, and flushing, you can expect a gas water heater to last anywhere from 8-12 years and an electric water heater to last anywhere from 10-15 years.
Efficiency. If you are comparing the efficiency of an electric water heater vs a gas unit, electric heaters are more efficient. Although gas hot water heaters are less expensive to run monthly due to the low cost of natural gas—a gas heater uses more energy to operate and releases waste into the environment.
While an electric water heater does heat water slower and more expensively than the gas models do, it heats the water more efficiently. The heating rods are submerged in the water in a sealed tank, so there is very little heat loss.
Usually natural gas is the cheapest way to heat water, followed by electricity, with propane being the most expensive.
Electric water heaters are available in both tank-type and tankless models. Tankless models are more space-efficient since they don't require a storage tank. Electric water heaters are less expensive to operate than gas models. It's generally safer than gas water heaters since there's no risk of gas leaks.
Heat pump water heaters move heat from one place to another instead of generating heat directly for providing hot water, resulting in high efficiencies and significant cost savings. Solar water heaters use the sun's heat to provide hot water and also save money on energy bills.
Typically, a hot water heater that uses a tank will run for three to five hours per day. So, a 4,000-watt heater used for three hours a day at $. 10 per kWh will cost $1.20 per day, about $36.50 per month, or $438 per year.
For instance, a medium-sized, 40-gallon water heater that uses 4500 watts and is active for 2 hours a day at a rate of $0.13 per kilowatt-hour (kWh) costs about $1.17 to run per day, which arrives at $35 each month or $426 annually.
More Efficiency
Generally speaking, electric water heaters are much more efficient than gas heaters. The energy usage varies by model, but you can usually count on electric models to be the most efficient. You can look at the EF rating to determine just how efficient the heater is.
If converting from gas to electric, not only will a plumber be needed, but the job will require an electrician, to upgrade the electrical panel and run an outlet for an electric water heater.
There are many regions where gas costs are extremely high due to the lack of supply in the region. In these areas, an electric unit can be significantly cheaper to operate. Remember, electric tankless water heaters are more energy efficient, so much of the cost difference between the fuels will be negated.
Electrical Work
Electrical wiring fees can cost between $50 and $100 per hour on average. It can cost an additional $200 to $500 or more to convert from a gas water heater to an electric heater. Electric heaters require their own dedicated circuit and cannot be put on an existing line.
Advantages and Disadvantages
The initial cost of a tankless water heater is greater than that of a conventional storage water heater, but tankless water heaters will typically last longer and have lower operating and energy costs, which could offset their higher purchase price.
Here's the catch: Modern water heaters are well-insulated meaning there is very little heat loss. Although electrical rates vary, the experts say turning off the water heater at night will likely save about two dollars a month.
In most households, water heating accounts for 12-18% of the utility bills. This percentage shows that some water heaters waste a significant amount of energy while on a standby mode. Using a timer can reduce the standby energy loss and help you save up to 30% of your water heating costs annually.
Unlike gas or propane tankless water heaters, electric tankless water heaters do not need venting because they use electric burners to heat water rapidly. Since no natural or propane gas is used, no venting is needed.
Benefits of Natural Gas
Cost, convenience and efficiency are some of the advantages of gas for heating your home's water. In addition to being cheaper than electricity, a natural gas supply is more reliable. In the event of a power outage, your gas supply isn't affected.
A gas water heater uses the heat from burning a fuel (usually natural gas) to heat water, while an electric water heater uses electric resistance coils. Gas water heaters are less energy efficient than electric heaters, but the cost of electricity itself makes the running costs of an electric heater higher.