Choosing between a gas and electric water heater comes down to costs, energy use, and household needs. Here’s a quick summary of what you need to know:
- Upfront Costs: Electric water heaters are cheaper, costing $300–$700, while gas models cost $400–$800. Installation for electric units is simpler ($700–$1,000) compared to gas ($1,000–$2,000).
- Monthly Bills: Gas heaters are more affordable to run, averaging $30/month, compared to $42/month for electric.
- Lifespan: Electric heaters last longer (10–15 years) than gas models (8–12 years).
- Maintenance: Gas units need more upkeep due to combustion systems, while electric models are simpler to maintain.
- Energy Efficiency: Electric water heaters are more efficient (90–95%) but cost more to operate because electricity is pricier than natural gas.
Quick Comparison
| Aspect | Electric Water Heater | Gas Water Heater |
|---|---|---|
| Purchase Cost | $300–$700 | $400–$800 |
| Installation Cost | $700–$1,000 | $1,000–$2,000 |
| Monthly Cost | $42 | $30 |
| Lifespan | 10–15 years | 8–12 years |
| Efficiency | 90–95% | 60–70% |
| Maintenance | Lower, simpler | Higher, more complex |
Gas heaters are cheaper to run and heat water faster, making them ideal for larger households. Electric models are easier to install, last longer, and work well where electricity is the primary utility. Local energy rates and household size should guide your choice.
Gas vs Electric Water Heater (Which is Best?)
Purchase Price and Installation Costs
When considering a new water heater, it’s essential to look at both the purchase price and installation expenses. These costs can differ significantly between gas and electric models, so let’s break them down.
Unit Price Comparison
Electric water heaters are generally easier on the wallet. A standard 50-gallon electric model costs between $300 and $700 as of 2025. On the other hand, gas water heaters, with their more intricate designs, range from $500 to $1,200 for similar capacities. If you’re eyeing energy-efficient options, hybrid electric water heaters sit at the higher end, priced at $1,500 to $3,000 for 50-gallon units. While these hybrids come with a steeper price tag, their energy savings can help balance out the initial expense over time.
Installation Costs and Requirements
Installing an electric water heater is relatively simple, with labor costs falling between $700 and $1,000. This covers connecting water lines and electrical wiring. Gas water heaters, however, are more labor-intensive due to the need for proper venting and, in some cases, gas line installation. Expect installation costs for gas models to range from $1,000 to $2,000. If a new gas line is required, that adds an extra $285 to $855. Additional adjustments can further increase the total installation cost.
Retrofitting and Extra Costs
Switching from electric to gas or vice versa comes with additional expenses. Converting to gas typically costs $475 to $1,425, while going from gas to electric can range from $475 to $1,900. These conversions often require upgrades like:
- Electrical upgrades: $250–$600
- New electrical outlets: $142.50–$475
- Gas line installations: $285–$855
Other costs to keep in mind include removing the old unit ($25 to $200), obtaining permits ($100 to $300), and installing new water lines if needed ($380 to $1,900). These extra charges can significantly influence the total upfront cost, which is vital to consider when evaluating long-term ownership expenses.
Monthly Operating Costs and Energy Use
Once you’ve paid for installation, your ongoing energy bills will play a big role in determining your long-term savings. The type of fuel your water heater uses is a key factor in these costs, so knowing the differences can help you make a smarter choice.
Monthly and Annual Energy Bills
Gas water heaters are generally less expensive to run compared to electric models. For the average household, a gas water heater costs about $30 per month, while an electric one averages closer to $42. Over a year, this adds up to savings of roughly $214 with a gas model. To put it into perspective, gas water heaters cost around $224 annually, while electric ones come in at about $438.
The gap widens with larger units. A 50-gallon electric water heater can rack up around $695 per year, compared to just $120 annually for a 40-gallon natural gas model. In fact, electric water heaters often cost 2–3 times more to operate than their gas counterparts.
For example, take a 4.5-kilowatt electric water heater running two hours daily – it uses about 9 kilowatt-hours per day. At a rate of 15 cents per kilowatt-hour, that’s roughly $490 per year in electricity costs. Meanwhile, a 40,000-BTU gas water heater running for the same amount of time costs about $292 annually. Most gas water heaters consume between 20 and 50 therms of gas per month.
Energy Efficiency and Performance
Electric water heaters are highly efficient at turning energy into heat, with efficiency rates nearing 98% since nearly all the input energy is converted into heat. Gas water heaters, on the other hand, operate at 80–85% efficiency due to some heat loss through venting. However, gas models heat water faster than electric ones.
Efficiency ratings also highlight this difference. Standard gas water heaters typically range from 0.5 to 0.7, while electric models score 0.9 or higher. Despite their superior efficiency, electric water heaters are often more expensive to operate because electricity costs more than natural gas. Gas models’ quicker recovery times make them a better fit for households with high hot water demand.
Local Utility Rate Impact
The cost-effectiveness of your water heater also depends on local energy prices. While gas rates are often lower than electricity rates, regional differences can shift the balance. In areas where natural gas is plentiful and cheap, gas water heaters can save you a lot of money. Conversely, in regions with low electricity costs or expensive natural gas, an electric water heater might be the better choice.
Ultimately, the right option for you will depend on your household’s water usage, budget, and local utility rates. These factors directly influence the long-term costs of owning and operating your water heater.
Maintenance, Repairs, and Lifespan
When considering water heaters, it’s not just about the upfront cost or monthly bills. Long-term maintenance and repair needs can significantly impact your budget. Here’s what you need to know about keeping your water heater in good shape.
Regular Maintenance Tasks
To keep your water heater running efficiently, there are a few routine tasks to stay on top of. For starters, flush the tank once a year (or every six months if you live in an area with hard water) to remove sediment buildup. Also, test the temperature and pressure relief valve annually to ensure it’s working correctly. And don’t forget – always disconnect the power or gas supply before performing any maintenance.
For gas water heaters, you’ll need to pay extra attention to the combustion components. Clean the burner assembly regularly, and inspect the flue and venting system for any blockages or damage. It’s also a good idea to check the pilot light daily – it should burn steadily with a blue flame.
Electric water heaters, on the other hand, are a bit easier to maintain. Their main concern is the heating elements, so periodically check for scale buildup. If left unchecked, this buildup can reduce efficiency and cause the unit to fail prematurely.
Repair Costs and Common Problems
Repair costs can vary widely depending on the type of water heater and the specific issue. On average, fixing a water heater costs about $506, though the model and problem can push that number higher or lower.
Electric water heaters are often cheaper to repair and more DIY-friendly. Common fixes include replacing the thermostat ($150–$200) or heating elements ($200–$300).
Gas water heaters, however, often require professional attention due to the risks associated with gas lines and combustion. Typical problems include issues with the pilot light, thermocouple, or gas valve. Fixing a pilot light or thermocouple usually costs between $120 and $200, while replacing a gas control valve can set you back $300 to $500.
Both types of water heaters may also need routine part replacements, such as:
- Anode rod replacement: $250–$300
- Dip tube replacement: Around $150
- Pressure relief valve replacement: $150–$200
If your unit is out of warranty and repairs start exceeding $300 annually, it might make more sense to replace it rather than continue patching it up.
Expected Lifespan
The lifespan of a water heater depends on its type and how well it’s maintained. Gas water heaters typically last 8–12 years, while electric models can run for 10–15 years. This longer lifespan can make electric heaters a better long-term investment, even if their operating costs are slightly higher.
Several factors can influence how long your water heater lasts:
- Water quality: Hard water speeds up corrosion and sediment buildup.
- Proper installation: Ensures the unit operates efficiently and avoids unnecessary wear.
- Regular upkeep: Tasks like flushing the tank annually and keeping the thermostat at around 120°F can add 3 to 5 years to the unit’s life.
For those in hard water areas, installing a water softener and insulating the tank and pipes can further extend the life of your water heater, protecting your investment for years to come.
Total Cost of Ownership Comparison
Looking beyond upfront and operating costs, analyzing the total cost of ownership gives a clearer picture of long-term expenses. When choosing between gas and electric water heaters, this comprehensive approach factors in everything: purchase price, installation, energy bills, maintenance, and eventual replacement.
Data from We Energies in Wisconsin reveals notable long-term savings depending on the type of water heater you choose. For example, a 50-gallon electric water heater costs about $2.69 per hour to operate, while a comparable gas model operates at roughly $1.18 per hour. The table below outlines these differences over an 8-year period.
Gas vs. Electric Water Heater Cost Table
Here’s a detailed breakdown of typical costs over 8 years, based on average usage and current energy rates:
| Water Heater Type | Cost per Hour | Max Shower Duration | 8-Year Energy Cost | 8-Year Repair Cost | Total 8-Year Cost |
|---|---|---|---|---|---|
| 50-Gallon Electric | $2.69 | 23 minutes | $3,912.80 | $600 | $4,512.80 |
| 50-Gallon Electric (160°F with Mixing Valve) | $1.71 | 38 minutes | $3,130.24 | $600 | $3,730.24 |
| 40-Gallon Gas | $1.18 | 21.9 minutes | $1,722.80 | $350 | $2,072.80 |
| 50-Gallon Gas | $1.18 | 29.9 minutes | $1,722.80 | $350 | $2,072.80 |
| 50-Gallon Gas (160°F with Mixing Valve) | $0.75 | 48 minutes | $1,378.24 | $350 | $1,728.24 |
| 75-Gallon Gas | $1.18 | 45 minutes | $1,722.80 | $400 | $2,122.80 |
| 200k BTU Tankless | $1.03 | Unlimited | $1,518.40 | $0 | $1,518.40 |
Based on We Energies rates, a 2.5 GPM showerhead, and a 105°F shower temperature
The most striking difference lies between standard electric and gas water heaters. Over 8 years, a 50-gallon electric model costs around $4,512.80, while a gas equivalent costs $2,072.80 – a difference of roughly $2,440. Even with higher upfront costs for gas units (typically $400–$800 compared to $300–$700 for electric), gas models generally prove to be more economical in the long run.
Electric water heaters often last longer and have lower repair costs, but their higher operating expenses can offset these advantages.
Tankless water heaters offer another option to consider. Although the initial cost is higher – ranging from $1,500 to $3,000 – a 200k BTU tankless model boasts the lowest total 8-year cost at $1,518.40, thanks to zero repair costs and excellent energy efficiency [40,41].
Adding mixing valves can also help narrow the cost gap. For instance, a 50-gallon gas unit with a mixing valve costs about $1,728.24 over 8 years, compared to $3,730.24 for the electric version – a difference of roughly $2,000 in favor of gas.
These figures are based on average usage, but your actual costs may vary depending on local utility rates, water usage habits, and maintenance routines. On average, American households spend between $400 and $600 annually on water heating, making it one of the more substantial ongoing home expenses.
Choosing the Right Water Heater for Your Home
Main Takeaways
When selecting between gas and electric water heaters, it’s essential to weigh factors like household demand, existing utility setup, and budget. Gas water heaters often have lower operating costs – around $332 annually for a 50-gallon unit compared to $591 for electric models – and heat water faster, with recovery rates of 30–45 gallons per hour versus 14–20 gallons for electric units.
On the other hand, electric water heaters are more affordable upfront, typically ranging from $300 to $700, compared to $400 to $1,000 for gas models. They’re easier to install and last longer, with a lifespan of 10–15 years, while gas models generally last 8–12 years.
Your home’s existing utility setup plays a big role in this decision. Homes with established gas lines often find gas water heaters more practical and cost-effective. Meanwhile, properties relying solely on electricity benefit from the simpler installation of electric units. Larger households with higher hot water needs may lean toward gas models due to their faster heating capabilities.
Another key factor is local energy pricing. Since water heating accounts for about 18% of home energy use, checking your area’s gas and electricity rates can help you estimate long-term costs.
Environmental impact is also worth considering. Electric water heaters produce no direct emissions and can integrate with renewable energy systems, like solar panels. In contrast, gas water heaters emit greenhouse gases and may have a higher environmental footprint depending on your local electricity grid’s energy sources. These insights provide a foundation for making an informed decision, with Plumbing Sniper’s expertise available to simplify the process.
FAQs
How do local utility rates affect the cost of running gas vs. electric water heaters?
Local utility rates are a big factor in deciding whether a gas or electric water heater will save you more money in the long run. If electricity costs are steep where you live, operating an electric water heater could end up being more expensive. On the flip side, if natural gas prices are high in your area, a gas water heater might not be the most budget-friendly option, giving electric models a potential advantage.
Because energy rates can vary so much across the U.S., it’s crucial to consider what you’re paying locally for electricity and natural gas. These costs play a major role in shaping your long-term savings and the overall efficiency of your water heater choice.
What environmental factors should I consider when choosing between a gas and electric water heater?
When choosing between a gas and electric water heater, it’s essential to think about their impact on the environment. Gas water heaters release greenhouse gases directly during the combustion process. While newer models are designed to be more efficient and emit less than older ones, they still contribute to emissions. On the flip side, electric water heaters don’t produce direct emissions, but their environmental impact depends on the energy grid. If the electricity comes from renewable sources, electric heaters are a more eco-conscious option.
With renewable energy gaining momentum across the U.S., electric water heaters are steadily becoming a cleaner alternative. That said, gas heaters still play a role in greenhouse gas emissions, so it’s worth considering your energy source and long-term environmental priorities when making your decision.
What should I consider when switching between a gas and an electric water heater?
When deciding between a gas and an electric water heater, it’s important to weigh a few key factors to make the best choice for your home:
- Upfront and installation costs: Gas water heaters often come with higher installation costs because they require venting and gas line connections. Electric models, on the other hand, are typically simpler and less expensive to install.
- Energy efficiency vs. operating costs: While electric water heaters tend to be more efficient, gas heaters often have lower operating costs, especially in areas where natural gas prices are lower than electricity rates.
- Heating speed and capacity: If you have a larger household or high water usage, gas heaters might be the better option since they heat water faster. Electric models, however, work well for smaller families or homes with lower water demand.
- Safety and environmental impact: Gas water heaters need proper ventilation to prevent carbon monoxide buildup, which adds a layer of safety concern. Electric models are safer in this regard and have no direct emissions, making them a cleaner option.
- Lifespan and maintenance: Both types generally last a similar amount of time, but gas models may require more upkeep, such as cleaning burners and maintaining vents.
Take the time to evaluate these factors based on your household’s size, water usage, local energy prices, and priorities around safety and environmental impact. This will help you make a choice that fits your needs and budget.
