Gas VS Electric Tankless Water Heater: Which One Should You Buy In 2022?

Gas VS electric tankless water heater is one of the initial queries most homemakers ask when buying a new tankless device.

Nonetheless, the verdict between which energy source you choose for your new unit may not be an option. Many regions don’t have access to both gas and electricity.

If you are fortunate enough to have ingress to both energy types in your area, this is the verdict you will want to devote some time to.

Both energy sources are different in terms of reliability, energy efficiency, initial expenditures, etc.

Both electric machines and gas appliances (natural gas and propane) have their share of advantages and shortcomings.

The final decision will rely on the homeowner’s or business owner’s individual needs, building capabilities, climate, etc.

The majority of folks will incline towards the power source of the water heater they have previously; you may be overlooking a unit that is a perfect fit for your residence.

To assist you pick the right type of tankless water heater for your house or office, we have summarized the pros and cons of both types of heaters.

Let’s take a look together.

Gas VS Electric Tankless Water Heater

Which Is Better Gas Or Electric Tankless Water Heater?

Both electric and gas appliances are excellent choices, and both have their own strengths and weaknesses.

Each residence or office has its own distinctive requirements. What is best for your friend might not be best for you. So, choose wisely.

Picking the energy source of the heater is an important decision, and you should make it based on your property’s hot water needs, budget, space, personal inclinations, and deployment opportunities.

If you cannot decide, consult with an experienced plumber or technician to help you make the right verdict for your individual requirements.

Electric VS Gas On Demand Water Heater: Buying Guide

Electric units are totally different from gas heaters. The only common thing they share is that they both produce warm water.

While buying a tankless machine, you have to consider lots of things, and your ultimate goal should be to buy the best type of device to meet your house needs.

Here we will compare both types of units so that you can see how they are different and similar to each other in each group.

Installation Requirements

Electric Tankless Water Heater

Electric appliances are easier and affordable to deploy than gas units. They are smaller in size than gas and propane-fueled heaters.

As they are less complex and a third the size of gas units, so you can install them anywhere in the house, such as under the sink, in the closet, basement, etc.

They don’t require ventilation because there is no gas combustion happening. It provides more flexibility on where they can be hanged.

If power modification and upgrade are not required, the deployment of an electric machine is easier and cost-effective.

Gas Tankless Water Heater

Gas appliances are costly and complex to install. A non-condensing model demands an intricate category 3 venting system which is crafted from stainless steel.

This venting system permits enough airflow for combustion. If you switch from a tank-style heater to a tankless device, you will have to replace the current venting ducts.

Besides, you will also have to spend money to upgrade the property’s incoming gas line to accommodate the new unit’s energy demands.

These expensive advancements are critical to meet the new machine’s natural gas and venting demands.


Electric Tankless Water Heater

Electric machines are easy to operate than gas devices. Since they work only on electricity, you will never have to turn on the gas to activate them. It makes them simpler to use and manage.

Gas Tankless Water Heater

Gas models are hard to operate, and you will have to turn the gas on to start your heater. This makes them difficult to use and manage.

Warm Water Requirements

Electric Tankless Water Heater

Electric appliances can produce up to 8 gallons of water per minute. 

Incoming water temperature impacts the output GPM of gas vs electric water heater tankless—the colder the groundwater, the lower the water flow rate.

Gas Tankless Water Heater

Gas heaters can generate up to 11 gallons of warm water. They are an ideal option for large houses that have high hot water demands.

Energy Efficiency And Operating Prices

Electric Tankless Water Heaters
EcoSmart ECO 27 Electric Tankless Water Heater

These units are 90% to 98% energy efficient, and they are less pricey than gas models.

In many regions, the electricity costs remain stable or rise at a slow speed.

If the electricity prices are higher in your area and you have access to gas, then a gas unit will be cheaper to work.

Gas Tankless Water Heater
Rinnai RUC98iN Indoor Natural Gas

These units are less energy-smart than electric units. They are approximately 80% to 85% energy-efficient.

Although natural gas is an inexpensive power type than electricity per BTU of output power, this advantage is dwarfed by the higher energy efficiency, less upfront price, and easier installation of electric devices.

Furthermore, gas and propane prices change more dramatically than electricity rates, and experts agree that gas rates will increase in the future.

The operational prices of both types of heaters are the same, especially when you consider the yearly maintenance cost of the gas heater.

If the gas prices are higher in your region, then an electric device will be cheaper to work.

Maintenance Requirements

Electric Tankless Water Heater

These devices need minimal maintenance.

You can install a pre-filter to inhibit sediment and use an inlet filter to flush the unit occasionally.

It is crucial to flush the heater annually.

Gas Tankless Water Heater

Gas-powered water heating systems are intricate; they need more maintenance and service than electric ones.

A professional plumber should examine your unit annually to check it is working accurately, and the power source is combusting safely.

You should also flush it annually to prevent sediment and limescale accumulation.

We would recommend you install a pre-filter to avert the sediment from entering the heater’s container.

You can complete many general maintenance errands yourself to save money.

It is difficult to service a gas device yourself because of its complicated heat exchanger.

Upfront Price

Electric Tankless Water Heater

The next thing you have to determine before buying a heater is “are tankless water heaters gas or electric.”

Electric machines are cost-effective than gas units. You can acquire a premium quality system in $500 to $600.

Gas Tankless Water Heater

The price of gas water heating systems is much more than electric ones. You can get them for over $1000. You can also check review of Best gas tankless water heater

The more features you choose, the more initial price you will have to pay.

Non-condensing systems are affordable, but they are extremely costly to install because of the venting demands.

On the other hand, condensing units don’t require a vent, but they have a stylish design, so they are pricier.

Lifespan And Warranty

Electric Tankless Water Heater

They boast straightforward designs; therefore, they have a life expectancy of 20 years.

Some brands offer lifetime warranties, and others offer a 5-year warranty for parts and a 1-year warranty for labor.

If a problem occurs, it is easier to troubleshoot, diagnose, and repair an electric machine. 

Gas Vs Electric Tankless Water Heater

Gas models are also designed to last for up to 20 years, but they require regular maintenance.

If you don’t maintain it properly, its lifespan will be negatively impacted.

Manufacturers offer different types of warranties for gas units.

Many cover the heat exchanger for 10 years, parts for 5 years, and labor for 1 year.

The majority of brands demand expert installation for the guarantee to be valid.

gas vs electric water heater tankless

Energy Type Considerations

Natural Gas VS Electric Tankless Water Heater

Electricity prices are less unpredictable than natural gas; thus, there are minimal rate alterations. Moreover, they utilize a generous amount of electricity.

Most of the time, folks will need to upgrade their house’s power system to accommodate the power needs of the new unit.

Gas Tankless Water Heater

Nowadays, the rates of gas and propane are lower than electricity.

However, it may not be the case in all areas of the world since prices change from area to area.

Experts agree that the gas rates will increase dramatically in the coming years. 

Effect On The Environment

Electric Tankless Water Heater

They are highly energy-efficient and have an energy efficiency rating of 98% to 99%.

They don’t burn fossil fuels and don’t discharge greenhouse gases into the atmosphere.

Gas Tankless Water Heater

They are energy-efficient than standard tank heaters. Their energy-efficiency rating is 80% to 85%.

However, they release greenhouse gases into the environment, so they are not eco-friendly.

Users’ Inclination

Electric Tankless Water Heater

Some people prefer purchasing electric vs gas on demand water heater because they are safer.

Many folks don’t feel comfortable using gas or propane-fueled device because of atmospheric concerns.

Electric heaters are highly energy-efficient and are environment-friendly at the same time.

Gas Tankless Water Heater

These appliances are a great option for individuals who want to increase the energy efficiency of their existing tank-style machines.

If you have a mighty family with higher warm water requirements, you should opt for gas heaters because they have a higher water flow rate than electric units.

Advantages Of Electric Tankless Vs Gas Tankless

Advantages Of Electric Tankless Vs Gas Tankless

Advantages Of Electric Tankless Water Heater
  • Easier installation
  • Low initial price
  • Minimal maintenance
  • Problems are easy to resolve
  • Higher energy efficiency
  • Environment-friendly
  • Use power only when running
  • Save energy and space at home
  • No bacterial proliferation
  • Have a longer lifespan of 20 years
  • Provide unlimited hot water always
Advantages Of Gas Tankless Water Heater
  • Have a higher capacity
  • Operating expenditures are lower
  • Consume less costly fuel
  • Maintenance is less pricey
  • Descaling is not required

Disadvantages Of Tankless Water Heater Gas Or Electric

Disadvantages Of Electric Tankless Water Heater
  • Demand a high amount of power to run
  • Lower flow capacity
  • Won’t have warm water in a power outage
  • Price is higher than traditional tank-style heaters
  • Higher installation costs if it is necessary to upgrade the power system
  • Temperature variations depending on the incoming water or the use of more than one tap at a time
Disadvantages Of Gas Tankless Water Heater
  • Higher initial price
  • Complicated and expensive installation
  • Proper venting is necessary
  • Not safe for the environment
  • Pose a higher risk
  • Need annual maintenance
  • If there is no gas, you won’t have hot water
  • Operating prices may increase in the coming years


In the end, each individual should assess their unique requirements against the advantages and disadvantages of both electric and gas water heaters.
Many experts prefer tankless electric devices because of their straightforward designs, uncomplicated installation, less up-front price, and minimal maintenance.
However, some specialists recommend buying gas water heaters because they have a higher water flow rate.
But, they are difficult to service and troubleshoot because they are armed with a complex heat exchanger.
In most situations, the choice between gas vs electric tankless water heater may simply be the power source your former machine used.
If your property can handle the energy demands, you can easily transition from a gas or propane-powered unit to an electric device.
Nonetheless, if you are moving from a standard heater, even if you are sticking with your existing energy type, your residence may need expensive energy upgrades and alterations. 

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