Gas Fuelled vs. Electric Tankless Water Heater [2022 Updated]

Every buyer must have been at a point where choosing between gas fuelled, or electric tankless water heater is not an easy peasy lemon squeeze task.

With the advancement in technology, most Americans, today, are starting to prefer the tankless models to the traditional water heaters. No doubt, they must have been faced with such an overwhelming task – choosing between the two water heater types – just as you.

However, most buyers often end up regretting their choice of models, and, as such, this article aims to offer a more detailed review to help you make better choices.

Quick Summary

Both electric tankless and gas-fuelled water heater are known for impressive efficiency compared to other models. Nevertheless, the two models differ in a couple of ways. This difference is vital to using the right model for your home.

The gas-fuelled model makes use of gas to raise your water temperature, while the other takes advantage of electricity to achieve the same desired temperature.

Gas-Fuelled Tankless Water Heater

Let’s a closer look into the world of gas-fuelled heaters: this model is available in two types. One model is fuelled using propane gas while the other is designed to heat your water using natural gas.

While these two models differ in the type of fuel being used, they often tend to come with almost exact construction and design. The significant difference is the gas that powers the water heaters.

Today, in the industry, most manufacturers offer both options – natural and propane gas-fuelled water heaters. Thus, as a buyer, you should consider the type of fuel before purchasing a gas-fueled water heater.

Electric Tankless Water Heater

Unlike gas fuelled models, an electric tankless water heater works with electricity. I think it’s evident that this is the significant difference between both highly sought after models.

Gas Fuelled vs. Electric Tankless Water Heater – Factors To Consider Before Purchasing

Power Option

Obviously, this should be the first thing to consider before making a choice. The power option readily available for your significant influences your decision.

More so, buyers should be aware that electricity may be a bit pricey than gas in several areas across the United States of America. Sadly, just like most things, the price of gas is greatly affected by several factors such as politics.

Initial cost

How much you are willing to splurge on a water heater determines which model you should go for. The gas-fuelled water heater is way pricey than their electric competitors.

Buyers can easily purchase an excellent electric model without having to break the bank, as most cost less than a thousand dollar.

On the other hand, a right-sized water heater using in either natural gas or propane tend to come with hefty price tags ranging above a thousand dollar, which is about twice the price of its competitors.

Cost of Installation

After deciding how heavy you want a water heater to be on your wallet, the cost of installing this unit is the next apparent factor to bear in mind.

For people with a custom-built house, the cost of installation may not be too expensive, as almost all meaningful connections are already fixed. But if you are looking to replace your traditional water heater with either model being discussed in this article, installation cost might be on the pricey side.

Furthermore, installing an electricity-powered water heaters are way cheaper than units running on gas. Why? You will have to put lots of factors in a place like ventilation – among a couple of other things.

Here’s the good news: installing a gas-fueled water heater outdoors can reduce the cost of installation.

Speaking of installation, the electricity-powered water heaters come with a sleek, seam design which offers this model an edge in terms of installation. The sleek design makes installing this product almost anywhere – closets, sinks, etc. – a breeze.

As mentioned earlier, the cost of installing an electric model can equally be costly, especially when you are upgrading your already established water heating system.

Operating cost

In terms of how much you have to shell out in using any of these models, gas-fuelled tankless water heaters score better on this factor. And, the reason for this isn’t far fetched.

The price of gas is relatively cheap compared to electricity. Besides, using a gas fuelled unit helps save more compared to the electrical models.

Flow rate

One of the main reasons people are incorporating this new technology into their homes is because of the availability of an endless supply of hot water. Both models discussed in this piece outperform the conventional heater.

It takes the electricity-powered water heater about 60 seconds to heat about 5 gallons of water, which should be more than enough for a small-sized family.

However, the gas-fuelled heater is a go-to for families more than 5, as it efficiently provides about 10 gallons of hot water per minute. This ample level of water supply should be enough to support several applications, including dishwashing, laundry, and baths.

Equally important, you should be aware that climatic conditions affect the flow rate of these heaters. For instance, cold areas tend to reduce the rate of flow compared to warm regions. Changes in climatic conditions affect both types of water heaters.


To a lot of buyers, a warranty means more, which is why it’s imperative to consider it. Generally, a tankless water heater often runs smoothly and efficiently without having to deal with one issue or the other. Nevertheless, it’s crucial that it comes with a generous warranty to be on the safer side.

Some models often come with a more generous warranty period than others. Sometimes this warranty period can go as high as five years. Note: this totally depends on the manufacturing brand.

That’s not all: some manufacturers offer other bells and whistles such as after-sale installation, which covers both installation and repair costs. This can be a distinct advantage if you are purchasing a gas-fuelled tankless water heater. They are not expensive to maintain and install.


Speaking of durability, tankless water heaters score better than the conventional units. A good unit should serve your home for more than 20 years. Note: the durability of these models depends totally on the materials used in the construction and proper maintenance.

Remember, always adhere to the maintenance guidelines provided by your manufacturer.