The main difference lies in the energy source and how it affects performance: gas systems heat water much faster and are usually cheaper to run, while electric systems cost less to buy and install, are easier to maintain, and last longer.
Neither is universally "better," as the right choice depends on your utility rates, household size, and installation limits.
While the DOE isn't banning gas water heaters entirely, the new energy efficiency standards effectively phase out many conventional models. Gas-powered units will effectively need to use condensing technology to meet the 2026 requirements—a feature that adds cost and complexity for manufacturers and installers.
Electric water heaters come with a few notable drawbacks, most prominently higher monthly operating costs (because electricity is often more expensive than gas) and slower heating or recovery times. They also won't work during a power outage, and larger electric models demand significant electrical panel capacity.
Plumbers generally recommend professional-grade water heaters sourced from supply houses rather than retail big-box stores, as they feature thicker, heavier-duty components. The most trusted brands among professionals depend on the type of system you need:
There isn't a single "number 1" model, as the ideal water heater depends on your home's setup, but top-rated brands dominating the market include Rheem (best overall tank/tankless) and A.O. Smith (best for durability and commercial-grade units).
The Home Depot offers traditional water heater tanks and modern tankless units, both powered by either gas or electricity. Depending on your selection, the average cost for standard tank installation is generally between $1,600 to $2,400. Tankless installation can range from $2,400 to $5,400.
Plumbers often hesitate to recommend tankless water heaters because they act like high-performance sports cars. Unlike traditional tank models that are "workhorses" and can function while mostly ignored, tankless units require precise installation, regular maintenance, and are highly sensitive to mineral buildup.
It takes time for your home to warm up and cool down. If you're not sure how long it takes, try turning the heating on about 30 minutes before you need it. You should turn it off 30 minutes before you'll stop needing it.
This problem usually comes down to capacity, heat production, or mixing issues inside your plumbing system. Sometimes the fix is simple, like adjusting your water heater temperature or flushing out sediment. Other times you may need a new mixing valve, an element replacement, or a different size water heater.
When the dip tube breaks, cold water entering the tank mixes with the hot water and reduces the water temperature, which can make it seem like you're running out of hot water. This issue can occur with both gas and electric models.
If yours is relatively new and still doing a good job, then there's no reason to get rid of it. That said, new boilers are really energy-efficient, so an upgrade might make sense if yours is old. The main thing to know is that there is no ban in place (or planned!) on gas boilers in the homes we live in today.
Currently, only New York has a statewide natural gas restriction. In May 2023, New York became the first state in the U.S. to restrict natural gas and other fossil fuels in most new buildings.
Natural gas water heaters are a staple in many American households. They're known for their quick water heating rates and their ability to work even when the power goes out. Efficient and generally low-maintenance, they're a reliable choice for larger families who need a lot of hot water.
A 40-gallon tank water heater installation costs $700 to $2,300, with an average cost of $1,650. Prices vary based on energy source and installation complexity. The national average cost to install a 40-gallon tank water heater ranges from $700 to $2,300.
Gas heaters commonly employ electric fans to distribute warm air evenly throughout a space. While these fans are essential for efficient heat distribution, they can significantly impact your monthly electricity costs.
In most homes, Heating and Cooling (HVAC) systems drive the highest energy costs, accounting for nearly 40% to 50% of your total electricity bill. Following these, the appliances that run up your bill the most include water heaters, refrigerators, and laundry machines.
Heating and energy expert Stephen Hankinson said that one "big energy cost saver" is to make sure you have your heating off when you're not at home. For instance, if you typically arrive home from work at around 6pm on weekdays, you could set your heating to activate just as you walk through the door.
NHS advice is to 'heat your home to a temperature that's comfortable for you', which should be 'at least 18°C in the rooms you regularly use, such as your living room and bedroom. ' 14 degrees is not a healthy room temperature.
For larger households, multiple showers, laundry, and dishwashing may run at the same time. Hot water demand could reach 10–12+ GPM. A high-capacity tankless water heater—or even two units installed in parallel—may be the best solution.
Insulate your tankless water heater pipes to prevent freezing and bursts. When plumbing guides talk about “insulating your tankless”, they mean the pipes going to and from your unit. They're as susceptible to freezing and bursting as any other pipes in your plumbing system.
Tankless water heaters come with a limited flow rate, meaning they might struggle to provide hot water simultaneously to multiple appliances or fixtures. If your household comprises several individuals taking showers or running appliances concurrently, you may need to invest in a larger unit.
Tank to Tank Installation: On average, replacing a gas or electric water tank with a similar model takes two to three hours. It takes between 45 to 60 minutes to drain, disconnect and remove your old water heater.