Are you tired of racing to get the first shower in the morning before the hot water runs out? If your old water heater is struggling to keep up, or if you’re simply looking to save money on energy bills, a tankless water heater is a fantastic upgrade. But once you decide to go tankless, a new question arises: Gas or Electric?
At Any Hour Electric, Plumbing, Heating & Air, we understand that every home and budget is different. Choosing between gas vs electric tankless water heater installation requires looking at more than just the sticker price. You need to consider your home’s existing utility setup, your family’s water usage, and long-term operating costs.
This guide will break down the differences, pros, and cons of both systems so you can make an informed decision for your home.
What Is a Tankless Water Heater?
Before diving into the fuel sources, it helps to understand the technology. Unlike traditional water heaters that store 40 to 50 gallons of hot water in a tank (keeping it hot 24/7), tankless units heat water “on-demand.”
When you turn on a faucet, cold water travels through a pipe into the unit. Either a gas burner or an electric element heats the water instantly. You get a constant supply of hot water without the standby energy losses associated with storage water heaters.
How Does a Gas Tankless Water Heater Work?
A gas tankless water heater uses a burner to heat the heat exchanger. As water passes through the exchanger, it reaches your desired temperature rapidly.
Pros of Gas Tankless Heaters:
- Higher Flow Rate: They can heat more gallons per minute (GPM), making them ideal for large families who want to run a shower and the dishwasher simultaneously.
- Lower Operating Costs: In many areas, natural gas is cheaper than electricity, which can lead to lower monthly utility bills.
- Better in Cold Climates: Gas units are powerful enough to raise the temperature of freezing cold groundwater quickly.
Cons of Gas Tankless Heaters:
- Complex Installation: They require proper venting to the outdoors and often need larger gas lines.
- Maintenance: They require annual maintenance to clean burners and check venting.
How Does an Electric Tankless Water Heater Work?
Electric tankless water heaters use high-powered electric heating elements to warm the water as it passes through the unit. Think of it like a super-charged version of a tea kettle, but for your whole house.
Pros of Electric Tankless Heaters:
- High Efficiency: They are typically 99% energy efficient because there is no heat loss through venting.
- Compact Size: They are smaller than gas units and don’t need ventilation, so they can be installed almost anywhere (even in a closet).
- Lower Upfront Unit Cost: The unit itself is usually cheaper to purchase than a gas model.
Cons of Electric Tankless Heaters:
- Electrical Requirements: They draw a massive amount of power. You may need to upgrade your electrical panel to handle the load.
- Lower Flow Rate: They may struggle to keep up with high demand, especially in the winter when incoming water is very cold.
Which Is Cheaper to Install: Gas or Electric?
This is the most common question we get at Any Hour Services. The answer depends heavily on your home’s current setup.
- If you choose Electric: The unit is cheaper, but the installation labor can spike if your home needs an electrical service upgrade (e.g., moving from 100 amps to 200 amps).
- If you choose Gas: The unit costs more. Installation costs can also increase if we need to install new venting or resize your gas lines to ensure the unit gets enough fuel.
Generally, if you’re replacing an existing gas tank heater, sticking with gas is often the most cost-effective route. If you’re building a new home or addition, electric might be simpler to install.
Which Costs Less to Operate?
While electric units are more efficient (wasting almost no energy), electricity itself is often more expensive per unit than natural gas.
For most homeowners, gas tankless water heaters cost less to operate on a month-to-month basis. However, if you have solar panels or live in an area with very cheap electricity, the math might tip in favor of an electric unit.
What Are the Installation Requirements for Gas?
Installing a gas tankless unit is not a DIY job. It involves working with combustible fuel and carbon monoxide exhaust.
- Venting: You need stainless steel or PVC venting that runs to the outside of your home.
- Gas Line Sizing: Tankless units need a sudden burst of heat. Your existing 1/2-inch gas line might need to be upgraded to a 3/4-inch line to support the load.
- Combustion Air: The unit needs plenty of fresh air to burn the fuel efficiently.
What Are the Installation Requirements for Electric?
Electric units don’t need venting, but they are power-hungry.
- Amperage: A whole-home electric tankless heater can draw 80 to 120 amps or more.
- Circuit Breakers: You will likely need multiple dedicated double-pole breakers in your electrical panel.
- Wiring: Heavy-gauge wiring must be run from your panel to the water heater location.
Which Lasts Longer?
Both gas and electric tankless water heaters have a significantly longer lifespan than traditional tank heaters.
- Traditional Tank: 8–12 years.
- Gas Tankless: 20+ years (with proper maintenance).
- Electric Tankless: 20+ years.
Because electric units have fewer moving parts and no combustion process, they can theoretically last slightly longer and require slightly less maintenance than gas units.
Which Provides a Better Flow Rate?
If you have a large family or a home with multiple bathrooms, Gas is the winner here.
Gas burners generate heat much faster than electric coils. A gas unit can easily provide 8 to 10 gallons per minute (GPM), allowing you to shower while someone else does laundry. An electric unit might top out at 4 or 5 GPM, which drops even lower in the winter when the incoming water is near freezing.
Conclusion
Choosing between gas and electric tankless water heater installation comes down to your household needs and your home’s infrastructure.
- Choose Gas If: You have a large family, you live in a colder climate (like Utah!), or you already have a gas line and venting in place.
- Choose Electric If: You have lower hot water demand, you want a unit that fits in a small space, or your home is not plumbed for gas.
No matter which you choose, the transition to tankless will provide you with endless hot water and energy savings.
Ready to Upgrade Your Water Heater?
Don’t let a cold shower ruin your morning. Contact Any Hour Electric, Plumbing, Heating & Air today! Our licensed technicians offer upfront pricing and can assess your home to recommend the perfect tankless solution for you.
Gas vs Electric Tankless Water Heater Installation Frequently Asked Questions (FAQ)
1. Do electric tankless water heaters require a panel upgrade?
Yes, in many cases. Whole-home electric tankless water heaters require a significant amount of power (often 3 to 4 dedicated 40-amp breakers). Most older homes with 100-amp or 150-amp panels will need a service upgrade to 200 amps or more to operate the unit safely.
2. Can I install a gas tankless water heater myself?
It is highly recommended that you do not install a gas tankless water heater yourself. The installation involves dangerous elements, including natural gas lines and carbon monoxide venting. Improper installation can lead to gas leaks, fire hazards, or deadly exhaust fumes entering your home. Always hire a licensed professional like Any Hour Services.
3. How much maintenance does a tankless water heater need?
Both gas and electric units should be flushed once a year to remove mineral buildup (scale), especially if you have hard water. Gas units require additional maintenance to inspect the ignition system, burners, and exhaust venting to ensure safe operation.
4. Will a tankless water heater give me instant hot water?
“Tankless” means you never run out of hot water, but it doesn’t mean “instant.” You still have to wait for the water to travel from the heater to your faucet. However, because they heat water so quickly, the wait time is comparable to a standard tank heater.
5. Which is better for cold climates: gas or electric?
Gas is generally better for cold climates. When the groundwater entering your home is very cold (30°F – 40°F), the water heater has to work much harder to reach 120°F. Gas units have the high power output needed to raise the temperature quickly without significantly reducing the water pressure (flow rate).