I’ve lost count of how many times clients have come to my team unsure whether to go with an electric or gas tankless water heater. It’s a big decision, and I get it—both have their ADVANTAGES, and the last thing you want is to invest in something that doesn’t suit your home or lifestyle.
Tankless water heaters are fantastic—they provide endless hot water while being energy-efficient. But here’s the thing: choosing between GAS and ELECTRIC isn’t just about what’s “better” in general. It’s about what’s better for you. Your home setup, energy costs, and even your daily routine play a huge role in deciding which one makes sense.
So, let’s break it down. Gas vs. electric—what’s the real difference, and which one should you choose?
Electric Tankless Water Heaters: How Good Are They?
If you’re looking for a low-maintenance, energy-efficient way to heat water, an electric tankless water heater might be the perfect fit. These systems run on electricity but use the same tankless technology as their gas counterparts—heating water on DEMAND without the need for a bulky storage tank.
Here’s how it works: When you turn on a tap, cold water flows into the geyser, activating high-quality electric heating elements, usually copper resistance rods. As the water passes through the heat exchanger, it’s instantly warmed, delivering hot water to your tap or shower in seconds. Many modern models even come with digital controls, allowing you to set and maintain your preferred water temperature with precision.
One of the biggest perks? Almost NO WASTED ENERGY. Unlike traditional tank-style heaters that constantly keep a full tank of water hot, an electric tankless unit only heats water when you need it. That means lower energy consumption and reduced utility bills over time. Plus, these are compact, making them easy to install even in tight spaces like small utility closets or apartments.
With instant, on-demand hot water, no standby energy loss, and minimal maintenance, electric tankless water heaters are a smart, hassle-free solution for any home.
Benefits Of Electric Tankless Water Heaters Over Gas
I often recommend electric tankless water heaters to clients who are mindful of costs. Unlike gas models, they’re hassle-free to install—no need for venting lines or complex setups—making the process simpler and more budget-friendly.
Their sleek, compact design is another big plus, especially for smaller homes. Since they don’t require extensive installation space like gas tankless water heaters, they make it easier to maximize every inch while still enjoying the benefits of tankless water heating.
Safety is another area where on-demand heaters stand out. Because they don’t burn fuel, there’s no risk of gas leaks or carbon monoxide buildup—just reliable, worry-free operation.
Maintenance is minimal, too. While gas water heaters require regular upkeep, electric units only need occasional checkups to keep them running efficiently. Plus, they tend to last longer, making them a smart long-term investment.
Disadvantages Of Electric Tank-free Water Heaters
While electric tankless water heaters are far more energy-efficient than traditional tank models, they do draw more power than gas tankless geyser when hot water demand is high. That said, the difference is usually minimal.
One drawback to keep in mind is their lower flow rate compared to gas tankless heaters. If your household needs a large volume of hot water for multiple taps or showers running at the same time, a single electric unit might struggle to keep up.
Another factor to consider is power outages—unlike gas-powered devices, electric water heaters won’t work when the electricity goes out, temporarily cutting off your hot water supply.
If you’re looking for an efficient, space-saving, and low-maintenance water heating solution, an electric tankless heater is definitely worth considering.
Gas Tankless Water Heaters: Are They Better Than Electric?
If you have a larger space and want higher water flowrate, a gas tankless heater is hard to beat.
Like electric models, gas tankless water heaters use heat exchangers to provide unlimited hot water on demand. But instead of electricity, they run on natural gas or propane. The fuel powers a burner module, which heats the exchanger, transferring warmth to the cold water as it flows through. The result? A steady supply of hot water whenever you need it. Here is a calculator to estimate propane usage and the cost involved.
Since these units rely on combustion, they require proper ventilation to safely release byproducts like carbon monoxide (CO). While they don’t take up as much room as traditional water geysers with tanks, you’ll still need space for an exhaust setup.
That said, if you have a LARGE HOUSEHOLD and need to run multiple showers, the dishwasher, and the washing machine all at once without running out of hot water, a gas tankless water heater is your best bet. Plus, they’re designed for maximum energy efficiency, making them a great choice if you want to upgrade your home’s performance while minimizing waste.
Advantages Compared To Electric Tankless Heaters
Gas tankless water heaters typically have a higher flow rate (GPM) than electric models, making them a great fit for larger households. If multiple showers, faucets, and appliances need hot water at the same time, a gas geyser can keep up effortlessly—so you never have to worry about running out.
They’re also more energy-efficient in the long run. Over five to ten years, the savings on utility bills can add up, making them a cost-effective choice.
Another big advantage? Unlike electric geysers, gas tankless heaters don’t rely on electricity. That means you’ll still have hot water, even during a power outage. This article can help you better understand power usage and associated costs.
Limitations Of Gas Tankless Water Heaters
Installing a gas tankless water geyser isn’t as straightforward as an electric one. It requires setting up gas lines, proper ventilation, and safety inspections—all of which add to the upfront cost. Because of this, gas heaters can feel like a pricey investment compared to their electric counterparts.
Another downside is maintenance. Gas units are more prone to scale buildup inside the pipes, which can reduce heating efficiency over time. In areas with hard water, this becomes an even bigger issue, requiring regular descaling to keep the system running smoothly. Electric tankless heaters, on the other hand, are much lower maintenance.
From an environmental standpoint, gas models aren’t as clean as electric ones. Since they burn fossil fuels, they release small amounts of carbon dioxide, contributing to your home’s carbon footprint.
Lastly, safety is something to consider. Because they rely on natural gas or propane, there’s always a risk—however small—of gas leaks. With electric water heaters, that’s simply not a concern.
Also Read: Overall Pros And Cons of Tankless Water Heaters
Electric Vs Gas Tankless Water Heaters: Comparison
| Points Of Difference | Electric Tankless Water Heater | Gas Tankless Water Heater |
|---|---|---|
| Upfront Cost | Lower upfront cost with an average range of $450 to $1,500. | Higher upfront cost with an average range of $1,000 to $2,500, or more. |
| Operational Cost | Monthly power expenses can vary between $20 and $40 (approx.) | Reduced monthly energy expenses, ranging between $15 and $30 (approx.) |
| Energy Efficiency | Highly efficient, delivering at least 98% energy efficiency. | Delivers at least 80 to 85% energy efficiency. |
| Hot Water Supply | On-demand, instantaneous, and continuous hot water supply. | On-demand, instantaneous, and continuous hot water supply. |
| Water Flow Rate | Lower flow rate – typically ranges from 3 – 8 GPM (gallons per minute), depending on the model. | Higher flow rate – typically ranges from 5 – 12 GPM (gallons per minute), depending on the unit. |
| Lifespan | Lasts 20 to 30 years with proper maintenance. | Lasts about 15 to 20 years with frequent, regular maintenance. |
| Appearance | Compact and modern, space-saving design | Modern and sleek, space-saving design |
| Space Requirements | Needs space with an average of 24 to 30 inches in height, 12 to 18 inches in width, and 3 to 6 inches in depth. | Typically needs space measuring 12 to 18 inches in width, 24 to 30 inches in height, and 6 to 12 inches in depth. |
| Installation | No specialized or elaborate setup is necessary. Professional installation charges range between $800 and $1,500 on average. | Specialized setup is needed for separate fuel and ventilation lines. Professional installation charges at least $1,000 to $2,500, or more. |
| Maintenance | Low maintenance – occasional cleaning required, costing about $100 – $150 a year. | High maintenance – frequent checkups, cleaning, and descaling required, costing about $150 – $200. |
| Performance In High-demand | Some whole-house heaters can deliver up to 9.8 GPM (approx.). | Some high-end models can deliver around 10.5 GPM or more. |
| Environmental Impact | Lower carbon footprint and negligible environmental impact. | Higher carbon footprint due to release of toxic gases like CO2 and CO. |
Also Compare: Condensing Vs Non-Condensing Gas Water Heater
Differences Between Electric And Gas Tankless Heaters: Detailed Analysis
Okay, so let me explain the differences quickly, based on the data mentioned in the table above:
1. Upfront Cost
Electric tankless water heaters tend to be more affordable, with prices generally ranging from $450 to $1,500. On the other hand, good quality gas tankless units start around $1,000, with high-end options often reaching $2,500 or more.
That said, if you’re looking for advanced electric water heaters—such as those equipped with solar power—prices can soar up to $6,000.
2. Operational Expense
Gas-powered tankless water heaters typically have lower operational costs than their electric counterparts, making them a smarter choice for saving on your monthly energy bills. However, this can vary in different states and even countries, depending on the cost of fuel/electricity.
I have seen most electric units can cost anywhere from $20 to $40 a month to run, gas heaters usually range from $15 to $30. This cost difference is largely due to natural gas being cheaper than electricity, though keep in mind that regional energy rates can impact the exact figures. In United States, the federal government offers a tax credit for energy-efficient tankless water heaters, which is a massive advantage.
3. Energy Efficiency
Electronic tankless water heaters typically have a slightly higher EF (Energy Factor) rating than gas geysers, meaning they make better use of the energy they consume. Electric models can achieve around 98% energy efficiency, while gas units usually range between 80% and 85%, but some may reach higher.
That being said, both types of tankless heaters are highly efficient, and their efficiency can rise by up to 35% if your average daily hot water demand is around 41 gallons or less.
4. Hot Water Supply
Standard electric tank-free geysers can easily supply unlimited hot water on demand for a small or a medium-sized family with moderate hot water needs.
However, GAS tankless water heaters are better equipped to handle the HIGHER DEMANDS of larger households. If you need to run several hot water fixtures at once, you may either need multiple electric units or choose a gas-powered geyser to keep up with the demand.
5. Water Flow Rate
Building on the previous point, gas tankless heater have a HIGHER FLOW RATE than electric ones, making them better suited for larger hot water demands.
Gas tankless heaters can deliver between 5 to 12 GPM (gallons per minute), while electric units typically provide 3 to 8 GPM. It’s important to note that the flow rate essentially reflects the size or capacity of a water heater, helping you gauge how much hot water it can supply at once.
6. Lifespan
Electric tankless heaters generally have a LONGER LIFESPAN than gas models. With proper maintenance, they can last anywhere from 25 to 30 years, while gas geysers typically last around 20 years with regular upkeep.
This difference is mainly due to gas heaters being more prone to scaling and sediment buildup inside, which can corrode the pipes over time and cause the system to degrade.
7. Appearance
Both water heaters are designed to be compact and stylish, making them ideal for tight spaces like closets or utility rooms.
However, you might notice that electric tankless geysers tend to be SLEEKER, while gas units can appear a bit bulkier due to the extra pipes and vents required for exhaust components.
8. Space Requirements
Both tankless water heaters have a minimalistic design that fits well in modern homes and can be easily mounted on the wall. However, it’s important to ensure there’s enough CLEARANCE for safe and efficient operation.
Gas units generally require extra space for exhaust or ventilation pipes, while electric models have a more compact, suitcase-like appearance. Typically, allowing 12 to 18 inches of width, 24 to 30 inches of height, and 6 to 12 inches of depth should be sufficient to accommodate any of these heaters.
9. Installation
Installing electric instant water heaters is relatively simple since they don’t require complex setups. As a result, installation costs are lower, typically ranging between $800 and $1,200.
On the other hand, installing gas tankless water heaters can be more expensive, usually costing between $2,000 and $2,500 or more. This is because gas geysers require specialized venting systems, gas components, and safety inspections to ensure everything is up to code.
10. Maintenance
As I mentioned earlier, if you’re looking for something low-maintenance, electric on-demand water heaters are definitely the way to go! The one I have at home is pretty hands-off and has been a reliable performer with just occasional maintenance, costing me around $100 to $150 a year.
In contrast, gas units require more FREQUENT CHECKUPS and may need intensive descaling, especially in areas with hard water. Overall, maintaining a gas tankless heater tends to be more expensive, with each session averaging around $200.
11. Performance On High Demand
Gas tank-free geysers typically have a higher flow rate (GPM), which means they’re great at handling peak demand. Some of the best tankless water heaters can deliver up to 12 GPM, making them ideal for large households during those busy times.
On-demand tankless heaters, on the other hand, have a LOWER flow rate and may seem a bit slower when demand spikes. However, there are still products that can deliver up to 9.8 GPM, which should be more than enough for smaller or medium-sized families.
I’ve heard plenty of complaints about not having enough hot water from tankless heaters. That’s why I always recommend figuring out your average hot water demand, especially during peak hours, and choosing a geyser that delivers just a little more than that. It’s an easy way to make sure your tankless water heater keeps up with your needs.
And let’s not forget the importance of REGULAR MAINTENANCE for both electric and gas models. Proper care is key to ensuring your tankless water heater runs smoothly for years to come. Don’t skip this step!
12. Environmental Impact
Electric tankless water heaters tend to have a lower environmental impact compared to natural gas-powered geysers. This is mainly because they don’t produce emissions at the point of use, and electricity can be generated from renewable sources. In contrast, gas water heaters burn fuel, releasing greenhouse gases like carbon dioxide into the atmosphere.
Because of this, electric tankless heaters are the more ECO-FRIENDLY choice, especially if your electricity comes from a clean energy grid. For an even greener option, you can opt for models powered by solar energy, helping you contribute to a cleaner, more sustainable planet.
So, Gas Or Electric Tankless Water Heater: Which Is Better And Why?
If I were to buy another tankless heater for my place, it would definitely be another electric-powered one. Here’s why – to me, these electric units are perfectly suitable for our 4-member family. Also, they’re more budget-friendly and also require minimal care. Who wouldn’t want a low-maintenance appliance that’s built to last and helps lower those utility bills?
Don’t get me wrong, gas water heaters are solid too for higher water flow requirements, but when I compare the two, personally, I’d prefer ELECTRIC TANKLESS models. And if you’re into going green, you can level up with a solar-powered heater and take your eco-friendly efforts to the next level.
I like this nice informative video comparing electric and gas tankless water heaters-
Quick Recap
Choosing between an electric or gas tankless water heater isn’t about which is ‘better’ overall but which suits your home, energy costs, and hot water demands best.
Electric tankless water heaters are compact, energy-efficient, and easy to install, making them great for smaller homes. They require minimal maintenance and have no risk of gas leaks, but they may struggle with high-demand situations and won’t work during power outages.
Ideal for large households with heavy hot water usage, gas tankless heaters provide a higher flow rate and work even during power outages. However, they require complex installation, regular maintenance, and proper ventilation.
Electric heaters have lower upfront costs but may lead to higher electricity bills. Gas models cost more initially but can be cheaper to run long-term, depending on local energy prices.
Electric models have a lower carbon footprint, while gas heaters burn fossil fuels and release emissions, making them less eco-friendly.
If you need an easy, low-maintenance, and eco-friendly option, go electric. If your household demands continuous, high-volume hot water, gas is the way to go.
