A gas heater – is widely considered to be cheaper to operate over the long run. However, circumstances may call for one or the other and Masters stands ready to solve all your water heater needs…
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.
Tankless water heaters, as you probably guessed, have no tank. Instead, the device houses coils that superheat the water as it passes through the mechanism to its destination. The result is on-demand hot water that rarely runs out, making it one of the most energy-efficient ways to heat water in your home.
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.
With electricity, the cheapest way to heat your water is through renewables. This includes heat pumps, solar thermal systems and solar panels (through solar PV optimisers/diverters). Although the heating of the water is extremely cheap, if not free, from these systems, the install cost is obviously high.
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.
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.
Depending on your local utility costs, gas water heaters are typically cheaper to operate than electric. They also cost more upfront than an electric. However, based on energy savings, gas heaters generally make up the difference in price in about one year. Cost: $300 to $600 for gas; $250 to $500 for electric.
Tankless water heaters have several advantages over traditional storage-tank water heaters, including being more energy-efficient and having a longer lifespan. However, they also have some disadvantages, such as being more expensive to install and having inconsistent water temperatures.
Conventional Tank Water Heater
Conventional water heaters are by far the most common type of water heater on the market. These water heaters are composed of an insulated tank typically holding anywhere from 20 to 80 gallons of water, which is heated by natural gas or electricity.
The U.S. Department of Energy reports a tankless water heater is 24% to 34% more energy-efficient than storage tank water heaters—as long as you use around 41 gallons per day. However, even if you double that amount, they are still 8% to 14% more efficient.
Usually natural gas is the cheapest way to heat water, followed by electricity, with propane being the most expensive.
Tankless water heaters, also known as demand-type or instantaneous water heaters, provide hot water only as it is needed, eliminating standby heat loss. Lasts about 20 years. 8%-34% more efficient than storage water heaters. Could save $100 or more annually with an ENERGY STAR qualified tankless water heater.
Lifespan. The average lifespan of a tank gas water heater is about 8 to 12 years. Tankless electric water heaters have a longer lifespan and can last an average of 15 to 20 years or more.
New storage tank water heaters are required to operate more efficiently, and tankless (on-demand) water heaters are even more efficient than that. Typically, homeowners replace their old water heater with one of the same type that runs on the same fuel—natural gas or electricity.
Comparatively, energy-efficient gas water heaters have an EF of . 67 or higher, while energy-efficient electric water heaters have an EF of 2.00 or 2.20, depending on tank size. By meeting EF standards, they can be considered energy efficient. Many energy-efficient water heaters are gas-powered.
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.
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.
Electric water heaters themselves are generally cheaper than gas. More size choices. Electric heaters come in many sizes, such as the 40-gallon model described or even smaller models, which can be installed in specific, smaller spots and are dedicated to a certain use.
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.
Tankless Water Heaters May Lower Your Energy Bills, But That Doesn't Always Mean They'll Save You Money. According to the Department of Energy, the average American household spends $2,060 annually on energy bills. And 13% of that cost is for heating water.
Hybrid water heaters, when used correctly, are incredibly energy efficient– they can save homeowners about $470.00 a year on water heater costs compared to a standard electric water heater!
Tankless Water Heaters
Tankless or demand-type water heaters heat water directly without the use of a storage tank. A gas burner or electric element heats the cold water as it passes through the water heater. Households that require a lot of hot water can benefit the from a virtually endless supply of hot water.