Electric vs. Gas Tankless Water Heaters

In September 2022, the California Air Resources Board (CARB) voted to ban the sale of gas-powered water heaters to help the state meet green initiatives. Although the ban doesn’t start until 2030, homeowners may have to decide in the future whether they want to install an electric or gas tankless water heater for their houses. Luckily, the state isn’t requiring people to replace their water heaters at this time, so you can still compare and see if electric vs. gas tankless water heaters are right for you.

For over 15 years, we’ve installed and serviced all water heaters, including gas and electric-powered tankless water heaters. At Monkey Wrench Plumbing, Heating, Air & Electric, our technicians are highly skilled and experienced in ensuring homeowners in Los Angeles and the surrounding areas have the right tankless water heater in their houses.

To help simplify the differences and similarities between electric and gas tankless water heaters, we’ll look at how they compare in the following categories.

• Heating mechanism
• Cost differences
• Efficiency ratings
• Water flow rates

By the end of this article, you can make a more informed decision on whether an electric or gas-powered tankless water heater is suitable for your home.

What’s the Difference Between Electric and Gas Tankless Water Heaters?

The most significant difference between gas and electric tankless water heaters is their source of energy to heat water. Gas tankless water heaters use natural gas or propane to heat water, whereas electric models rely solely on electricity.

Despite having different energy sources, electric and natural gas tankless water heaters are still more efficient than conventional water heaters. Tankless water heaters heat water only when needed in a home, differing from traditional water heaters that keep water in a storage tank heated at all times, requiring more energy consumption.

We briefly discussed the main difference between electric and gas tankless water heaters, but in the next section, we’ll dive deep into how different these two water heaters are in terms of how they heat water.

How Do Electric and Gas Tankless Water Heaters Heat Water?

Electric and gas tankless water heaters use different energy sources to heat water. These two tankless water heaters have slightly identical operational designs but differ in how they produce heat.

Here’s a short breakdown of how gas and electric water heaters heat water differently from each other.

• Electric tankless water heaters: When water first enters any tankless water heater, it activates a flow sensor, which kickstarts the heating elements. An electric water heater has heating elements made out of metal that heat up when an electric current passes through. This heat is then transferred to the incoming water and becomes available as hot water at a fixture.
• Gas tankless water heaters: Like electric tankless water heaters, gas-powered tankless units have a flow sensor that starts the combustion process. A gas valve opens and allows propane or natural gas to enter the chamber, where a spark ignites it and produces a flame. The flame heats the exchanger, transferring the heat to create hot water.

Both electric and tankless water heaters rely on their heat exchangers to transfer the heat from their energy source to create hot water.

(A steel heat exchanger highlighted to show its location inside a tankless water heater)

Besides their heating methods, one other difference between gas and electric tankless water heaters is their cost.

Cost Comparison Between Electric and Gas Tankless Water Heaters

• Electric tankless water heaters cost between $400 to $2,500 without installation and between $1,800 to $7,200 with installation.
• Gas tankless water heaters cost $1,200 to $2,900 without installation and $4,800 to $8,500 with installation included.

Gas tankless water heaters tend to cost more than electric tankless water heaters. Multiple factors impact the overall price of a gas or electric tankless water heater, such as tankless water heater brand, modifications, water filtration, and additional accessories.

Still, one of the reasons gas tankless water heaters cost more is because of their installation complexity. A gas tankless water heater installation involves gas lines and requires proper ventilation.

Although gas and electric tankless water heaters can be purchased as standalone units, hiring a professional is recommended to ensure it’s installed without any issues. To help offset the costs, homeowners in Los Angeles and the surrounding areas can take advantage of local rebates and federal tax credits available.

Now that you’re aware of the budget needed to purchase a gas or electric tankless water heater, you can start considering the differences in efficiency between these two models.

What Is More Efficient: Electric or Gas Tankless Water Heaters?

• Electric tankless water heaters have a UEF rating of .96 or higher.
• Gas tankless water heaters have a UEF rating between .81 to .96.

As mentioned, tankless water heaters are more energy efficient than conventional water heaters. Yet, electric tankless water heaters tend to have higher energy efficiency ratings than gas-powered units.

Electric and gas tankless water heaters can provide homeowners with hundreds of dollars in energy savings. Nonetheless, these savings can be affected by the operational costs due to electricity and gas rates. If your area has high electricity rates, for example, you may have an increased electricity bill each month.

Electricity is considered more environmentally friendly than gas because it produces fewer greenhouse emissions. Gas tankless water heaters release these greenhouse gases as a byproduct of their combustion process to heat water.

In addition to having different energy efficiency ratings, gas and electric tankless water heaters have different water flow rates, which we’ll touch on in the next section.

Which Produces More Hot Water: Electric or Gas Tankless Water Heaters?

• Gas tankless water heaters tend to produce more hot water per minute, between 5 to over 10 gallons per minute (GPM).
• Electric tankless water heaters generally have between 2 to 5 GPMs.

Electric tankless water heaters tend to have lower GPMs due to limitations on their heating elements, whereas gas tankless water heaters have higher heating capacities. Gas is able to provide a quick heating source, allowing gas tankless water heaters to provide hot water faster and at a higher flow rate.

Larger electric tankless water heaters exist with high GPM rates, but some of these are limited compared to gas tankless water heaters. With a future ban on gas water heaters going into effect in 2030, water heater manufacturers will likely produce electric water heaters capable of increased and improved water flow rates.

Luckily for homeowners, technicians can help find the right tankless water heater, whether gas or electric, that best meets a home’s hot water needs.

Is an Electric or Gas Tankless Water Heater Right for Me?

Although there’s an impending ban on gas water heaters in 2030, homeowners can still purchase a gas water heater or get a headstart and explore electric tankless water heater options. Although both differ in fuel sources, either tankless water heater can help provide a house with hot water.

Since 2007, we at Monkey Wrench Plumbing, Heating, Air & Electric have gained valuable insight into different types of water heaters, from tankless to conventional. Although gas and electric water heaters operate differently, we specialize in helping homeowners find the right one for them and their families.
To help prepare you for a tankless water heater, check out our list of the top five tankless water heaters to narrow your search to a single brand.

If you wish to explore other water heating options that aren’t tankless, check out this article on the difference between gas vs. electric conventional water heaters.

If you’re interested in an electric vs. gas tankless water heaters, contact us using one of the buttons below or call us at (818) 213-1773 today!