Gas vs. Electric On Demand Water Heaters – Which One is Top?

gas vs electric tankless water heater- which one is best? To know the answer you have to read our team of experts analysis carefully. Because, Hot water on demand is a basic necessity for homes situated in cold regions. Countries located in cold areas require hot water most of the time for regular household activities. A reliable water heater provides hot water in the midst of winter. You and your family will have an enjoyable experience during bath time in the winter season. With the help of the water heater, you can use all household appliances like dishwashers, shower, sink, washing machine, cloth washers and many more.

You have to spend some money to enjoy heated water at any time. The water heater is not too much expensive nowadays. Its overall costs are decreasing day by day. Many new features and functions also added to the unit. According to the U.S. Department of Energy (DOE), the average home spends around $400 to $600 each year in water heating systems. The sum may vary from household to household. The estimated dollar used in heated water for the average house is quite correct in many ways. The water heating also the second largest household expense according to many US department of energy. It goes around 14-18 percent of the total utility bill. The amount is quite huge.

Invest in the right water heater by evaluating the performance and cost. An individual needs to find the right balance between performance and ost. It should be carefully measured. For many people, it is hard to decide between electric or gas powered water heaters. They become confused to decide what fuel to choose for a tankless water heater. Our experts will try to show the brief information for each water heater.

We hope the information about gas and electric water heater will guide you to choose the most suitable water heater for your home. At last, you can evaluate which one is top between the two systems.

Fundamental differences of gas VS electric on-demand type water heater

Gas tankless water heater

Electric tankless water heater

Water heater requires different modification in the house.

Electric needs at least 20 amps.

Costly additional fuel source is required to e installed.

The upgrade is cheap in electric.

It requires ventilation to channel out the carbon dioxide (CO2)

It requires no ventilation

The formula of cost calculations- Gas heaters: 365 x your usage / EF x Fuel cost

Electrical heaters: 365 x kWh/day / EF x Fuel cost. The formula used for calculating the electric tankless water heater.

Less impact on the environment.

That's an environment- friendly unit for the people.

The gas system is mainly 85% efficient.

Electric is close to 99% efficient.

Electric On Demand Water Heaters

The essential benefits of choosing electric water heaters are pointed below:

  • User-friendly and easy to use.
  • Compactly designed water heater.
  • Cheap installation cost.
  • Power sources are available from any part of a county.
  • Unlimited supply of hot water.

Advantages of electric water heater re-discussed below-

Convenience of use

Electric water heaters have user-friendly settings. Their functions and features are simple to understand. In all situation, electric water heaters are generally easy to use compared to gas-powered water heaters. Electric heaters run on electrical power. A user does not need to worry about fuel like gas. The gas-powered water heaters are required to turn on the gas to start the water heating operation.


Electric water heaters are compact. They do not require venting for exhaust gases. There are more options to install in any area of the house. Electric tankless water heater comes compact design so it can easily fit into less space area. Resulting electric water heater more popular to the user.

Installation cost

An individual easily installs electric water heater compared to gas-powered heaters. Electric water heaters do not require venting. Therefore it has more advantage when it comes to installation cost.
On the other hand, installing gas water heaters requires different new ventilation systems. In many cases, a user needs to change the existing ventilation when they buy a new unit or due to high range of gas consumption.

Power source

Electricity is available in urban and rural areas in modern times. Households connected to the power grid use electric water heaters because of flexibility and open power source.

Gas powered heaters require gas facility, especially from local gas service. In many rural regions, local gas service works mutually with government and private organizations to supply sufficient gas for the citizens.

Unlimited hot water

Your house needs to have an electric connection, and that's it. Then you install an electric water heater in a convenient place. So your home will never run out of hot water.

Small problems with electric water heaters

  • High operation cost in the long run.
  • When somewhere electricity is not available, there will be no hot water.
  • Low recovery rate.

Disadvantages of choosing electric water heaters discussed below-

Expensive unit

The operational cost of a running electric heater is very high in the long run despite the low initial installation cost. The logic is that the cost of electricity is expensive compared to gas. Users have to pay the more electric bill for electric heaters.


Your television, lights, phones and other electronic appliances cannot run without electricity. In the same way, electric water heaters require a sufficient amount of power and watts to heat the water. Finding an alternative source to power the electric heater is hard. An individual has to shower in cold water if there are any issues with the power outage.

Recovery time

The recovery rate of the electric water heaters is low. High usage of hot water in a single time cannot cover the immediate need again for its slow recovery time. The water will heat, and it needs a few minutes to recover the flow of hot water still after heavy use. When a home uses hot water to its high peak, then it needs the recovery time to heat the water again.

Gas tankless water heaters

Some benefits of gas tankless water heaters given below-

  • Gas tankless  water heater has a rapid heating system. 
  • The unit has the highest recovery rate.
  • Low operating costs.
  • Tankless water heater works without electricity.

Advantages of choosing gas on demand water heater re-discussed below:

Recovery rate

Large families find gas-powered water heaters suitable for their highest recovery rate. It handles heavy use very smoothly. High recovery rate means the amount of water which s heated to a certain temperature within the given time. It's can firstly boil water compared to electric. Many large families and factories require a massive amount of hot water. So they find it an ideal unit.

Fast heating

In a single time, each member of a big family can use the hot water from any faucet, sink, and shower. The unit does continuous heating. People will be able to do bathing, washing, cleaning and making at the same time. It eliminates waiting for the hot water. Recovery time is very speedy in gas powered tankless water heater.

Operation cost

In many countries, there are vast supplies of gas. It is also cheaper than electricity. Gas water heaters need the low cost to operate for a long time. The initial price is high of installing gas tankless water heaters. The unit is economical in the long run for its low operating cost, unlike electric.

No need for electricity

Electricity is not needed to run gas tankless water heaters. It is a big advantage that it operated without electricity. Even during power outages, a user does not need to shower in icy cold water because the hot water will remain unaffected as the water heater run by natural gas or propane. 

Problems with gas on demand water heater

  • Gas water heater requires a high initial cost.
  • It has a complicated process.
  • There may be a risk of gas explosion.

Disadvantages of choosing gas water heater-

High cost

In the long run gas water heaters are economical, but at first, you have to spend a large sum of cash for running the unit. Higher installation cost and extra ventilation cost is a must for the group. Ventilation system required for its exhaust of emissions.

Installation process

Gas water heaters have a complicated installation process, unlike electric water heaters. We know the ventilation system installed with the heater. Therefore, it needs to be connected to the ventilation system and requires a specific location. You are unable to install anywhere in your home.

Gas explosion

The unit powered by gas. Its operated by heating function. There's a risk of explosion; if the water heater not maintained or used carefully. A special check of the heater s required for preventing damage.

Final verdict

It is exciting to have an endless supply of hot water in the home. Low utility bill of hot water will save the money, time and environment. We have mentioned some necessary information in the upper portion of the article. A homeowner, user or business person can read the information and decide by themselves which one is top, gas or electric.

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