2y. An electric hot water heater ranges in costs from about $300 to $700 while a gas heater ranges from $400 to $800. Yearly cost gas vs electric tankless water heater: The Yearly operating cost is $195 for a gas tankless and $535 for the electric water heater. The more capacity an electric water heater has, the higher the cost. Tankless heaters . Bowerman: Water connections are the same on both gas and electric. A high-quality gas tankless water heater costs roughly $1000 upfront. . Some tankless heaters cost upwards of $5,000 if they have special features or an exceptionally energy-efficient performance (such as condensing tankless water heaters). When choosing a tankless water heater, the amount of hot water you need is the biggest factor. The average installation cost for a water heater is between $825 and $1,700. Durability: Tie. Lastly when comparing prices for high-end tankless water heaters, electric models range in price from $700-850, while gas tankless water heaters cost $1,350-1,500+. Condensing tankless water heaters, on the other hand, can use inexpensive PVC piping since the condensing process cools off the gases before releasing them. By meeting EF standards, they can be considered energy efficient. . Higher. On average, the cost of a tankless water heater is $250-$5,000. The tankless heater has to work extra hard to bring the water temperature up to 110F or 120F. Fortunately, gas heaters are energy-efficient and ensure the most environment-friendly service possible. (Propane) can power gas cooktops, home heating and hot water systems. Electric and Gas Tankless Water Heaters: Key Points Upfront Cost. Using this gas tankless water heater for two hours will consume 50 to 130 watts (0.05 to 0.13 kWh). That's $28.95 to $75 monthly or $352.225 to $912.50 annually. The price advantage is increased when using gas for both water and home heating. With the option for natural gas or an electric tank water heater, you do see some benefits to selecting the tank option. Electric tankless water heaters are way cheaper than their gas-fuelled competitors. As the tankless system is more efficient, less fuel is used to produce hot water. The national average cost to install a gas water heater is $1,000 to $2,500. Fuel costs. On Home Depot. They can reach EF of 0.98, while gas-powered ones reach EF of 0.9. Most models have an efficiency rating of 98 to 99%. The tankless heater has to work extra hard to bring the water temperature up to 110F or . Electric tankless water heaters are usually less expensive than gas heaters. . They do not waste energy. If you live in New York, where the average kWh price is 19.30 cents, you will pay 0.965 to 2.5 cents daily. Electric systems are more efficient (98 - 99 percent efficiency) than gas systems (80 to 85 percent efficiency). Though the efficiency rating of some electric units is actually . If your annual savings are $100, it would take 20 years - the approximate lifespan of a tankless water heater - to recoup the cost in energy savings. Gas water heaters tend to be just slightly more expensive than their electric counterparts. In addition, the electric model has about 70% higher gas emissions (at the point where it is created). Here are the particular differences between electric and gas tankless hot water heaters: Energy-efficiency. It is because rest is exhausted in the form of steam or vapors. Gas models are often eligible for a $300 federal tax credit. Gas prices also fluctuate more dramatically than electricity prices and are expected to rise in the future. Tankless vs. Average Costs for Electric Tankless Water Heater Installation & Replacement. Tankless: We factored in an installation cost of $1,250 for a gas tankless and slightly less, $1,150, for an electric. Using a natural gas rate of $10.86 per 1,000 cubic feet, we calculated that . The electric tankless water heater has a 98-99 percent energy efficiency rating. Gas water heaters cost $100 to $700 more than electric to install. Gas water heaters are slightly expensive than electric models. To get the difference in price right, you need to factor in the cost of the water heater and the installation price as well. According to the Department of Energy, based on the assumption that an electric water heater runs for an average of about three hours per day, a 50-gallon water heater, running at 5,500 watts, with an electricity rate of $0.16 per kWh, will have an annual operation cost of $781. If you use approximately 64 gallons of hot water per day, an electric water heater will cost about $285 per year, while a gas water heater will cost about $110 per year depending on your energy costs. The gas-fueled water heater is costly than the electric one. For electric water heaters, the cost is the opposite: an electric heater will have a lower upfront cost (with the average . Comparably less expensive than the gas systems. Otherwise, electricity is probably a cheaper, more reliable way to go. Compared to the tankless, the tank water heater will have a higher energy bill due to its continuously heating water, even when not in use. Gas Tankless Water Heater Cost. It all depends on the type of electric heater you're using. . The more BTUs, the faster the unit will heat water. Also, non-condensing type gas water heaters are less expensive but need extra cost to install venting pipes. Gas vs electric hot water systems. Gas water heaters typically cost about $30 a month to run, while electric water heaters run closer to $42 a month , depending on utility rates. This makes the total cost for a 40-gallon . However, because of the significantly lower cost of natural gas, these water heaters can be cheaper to operate compared to an electric version. Tankless Electric Heater = $4351/year + ($1500/20 years) = $4426/year. Prices of natural gas and propane are usually lower than the price of . Gas water heaters are less costly to operate . Efficiency: Electric tankless water heaters are very efficient when we talk in terms of energy. To calculate the annual operating cost of a propane water heater, you need to divide 41,045 by the heater's Energy Factor and multiply the result by 365, and the fuel cost per British thermal unit . Model Number Energy Factor $ Annual Estimated Cost Nat $ Annual Estimated Cost LP GCVT-40 0.60 $304 $492 GCVT-50 0.58 $315 $531 GCVX-50 0.58 $315 $531 GCV-65 0.57 $320 $540 FCG-75 N/A N/A N/A FCG-100 N/A N/A N/A Model Number Energy Factor $ Annual Estimated Cost Nat $ Annual Estimated Cost LP GVR-30 Series 200/201 0.62 $294 $497 GVR-40 0.62 . There is a range of costs for this project, depending on the unit type and size. For a comparison to your current hot water tank, simply input your zip code and select the tank's fuel type (electric, natural gas, or propane), age, size, and number of units. 365 days/year x 12.03 kWh/day EF x Fuel Cost ($/kWh) = annual cost of operation. The average cost of an electric water heater installed by a plumber is about $625 for a point of use model and around $1,150 for a whole house electric water heater. As far as initial cost is concerned, a good quality whole house electric tankless water heater generally cost about $500-700, whereas a typical gas tankless water heater cost about $1,000 to $1,200, especially for units with an electronic ignition (no pilot). For simplicity, the analysis will be limited to upfront and operation costs. If the average yearly cost of running an electric tankless water heater is $527,10, running a gas-powered tankless heater will cost only about $175,70 due to the lower cost of gas. These units are 90% to 98% energy efficient, and they are less pricey than gas models. These appliances reach mid-80% energy efficiency. While electricity is the more expensive fuel of the two (at the moment, at least), the high efficiency rating of electric water heaters will ensure you spend less money in the long run. Tankless water heaters cost anywhere from $800 - $3500 for initial installation, but you will only need to pay high installation costs once. This cost will vary depending on the efficiency rating of the . The total cost range is under $300 to more than $2,000 when considering the whole range - from a . The national average price of a tankless water heater is $2,200. Gas water heaters average on a total of $1,300 - $2,600 in advance. Electricity is more expensive than gas, but the efficiency and lack of required maintenance offset the cost. Unlike operational costs efficiency, an electric tankless water heater can easily beat gas-powered units in energy efficiency. In general, the operating costs of the two types of water heaters are nearly the same. What size tankless water heater do I need for a family of 5? Whole house electric tankless water heaters cost about US$500-700 where as gas tankless water heaters generally cost US$1,000 or more, especially for better quality systems with electronic ignition systems. An electric tankless water heater cost per year for a family of 4 is roughly $336 Electric tankless water heaters are, on average, more efficient. After analyzing gas vs. electric water heater operating costs, Bluejay says that gas is almost always cheaper than electric, assuming that you already have natural gas piped into your home. In some cases you may be able to achieve even greater energy savings if . A 30-gallon electric water heater might cost as little as $270. This is almost 2 times the price of an electric tankless water heater. An electric water heater has line voltage connections with, as a rule, three connections total. Cost-efficiency. The regular price range for electric tankless water heaters is $500-$1000. If the electricity prices are higher in your area and you have access to gas, then a gas unit will be cheaper to work. While gas usually costs less according to power output, electric tankless water heaters are more efficient than gas types. Savings on the base retail price can range from 250-500 dollars. Electric water heaters range in power . A well-maintained gas unit should last at least 10 years, and you may get a couple more years out of your electric system. Initial cost. A new 40- to 50-gallon hot water heater costs $330 to $2,000 for the unit alone, plus the plumber labor cost to install is $200 to $1,000. Cost - Operating: When comparing operating cost, this is where the natural gas vs electric tankless water heater really shines. Pricing. The average annual operating costs of a hybrid water heater is about $190 per year. Electric 50 gal. A good sized electric tankless water heater goes for around $500. A gas tankless water heater cost per year for a family of 4 is roughly $144; By the same metric, an electric tankless water heater will cost roughly $0.11 per kWh which for the equivalent BTU usage for that same family of 4 is $0.96 per day. Compact - Tankless water heaters are small and compact. The yearly ownership cost of each heater option would be: Heat Pump Cost = $1688/year + ($1800/15 years) = $1808/year. Average input ratings for a gas water heater range from around 30,000 to 180,000 BTUs, depending on size. Initial Cost: In terms of initial product cost, electric tankless water heaters cost significantly less than their gas counterparts. For electric water heaters, including heat pump units. Opposite of that, gas water heaters achieve the efficiency of 80 to 85%. The reason is gas tankless water heater features an electronic ignition system whose quality varies with the price. Comparatively, energy-efficient gas water heaters have an EF of .67 or higher, while energy-efficient electric water heaters have an EF of 2.00 or 2.20, depending on tank size. Overall . In order to know how much a tankless water heater will reduce your energy bill, you would need to factor in your own personal rates. Installation costs are affected by the type of heater, the desired installation . They can be 8%-14% more energy efficient for homes that use a lot of hot water -- around 86 gallons per day. Both will require annual descaling and/or good water treatment (filter and/or softener depending on your water quality) to keep them functional. In short, a family of 5 would need a 10 GPM gas tankless heater or 27 kW electric tankless heater if you live in the northern part of the USA, where the input water has a lower temperature. Most pay around $1,200 for an installed 50-gallon storage-style water heater with a direct vent. Tankless Gas Heater = $1200/year + ($2000/20 years) = $1300/year. On the flip side, electric tankless water heaters can have both a good and a harmful impact on the environment. The heaters with more advanced technology can be upto 1000 dollars. On the other side, condensing type . When comparing mid-range prices tankless water heaters, an electric model costs $500-570, while a gas tankless water heater costs $900-1,170. For most homeowners and businesses, the high costs of installation of gas tankless water heaters make electric units much more practical and cost effective, and a better overall investment. 2. Installation costs for an electric heater are $700 to $1,000 while the cost to install a gas heater ranges from $1,000 to $2,000 depending on whether you have an existing gas line and vent. Gas water heaters cost less to operate than electric water heatersabout 33% less. Let's say you spend $2,000 to purchase and install a tankless water heater. For homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%-34% more energy efficient than conventional storage tank water heaters. water heater: $561 per year; Gas tankless water heater: $228 per year; You may pay a little more or less, depending on your area's utility costs and the size or flow rate of the water heater . As the efficiency and quality of both the heaters increase, their costs will be higher. Gas water heaters will have both a gas connection and an exhaust connection that must be done to complete the installation. On average, you can expect to pay about $1,500 for parts and labor. These do normally require more frequent replacing since their expectancy is 10 to 15 . However, since the total cost of natural gas is low, you will pay an overall lower monthly utility bill. The efficiency rating for water heaters is based on how much hot water the unit produces with a single fuel unit. Gas fueled tankless water heaters operating costs are about $228 per year. Traditional water heaters (natural gas and oil fired) have an energy factor (EF) of .53 to .70. To purchase a gas-fueled water heater, you have to spend about $1000 - $1200, whereas by paying $500, you can get an electric water heater. If your looking for a higher GPM than electric models, gas tankless water . "If you have a gas water heater and you're replacing it with a gas water heater, you can expect installation to cost about as much as the unit itselfaround $300 to $500," O . How big of a tankless water heater do I need for a family of 5? This project's low cost is $600 for an installed point-of-use tankless heater. The average gas tankless water heater installation cost $950 - $3,900 for an energy-efficient natural gas set-up with an annual ownership cost ranging from $185 - $270 to run. In short, a family of 5 would need a 10 GPM gas tankless heater or 27 kW electric tankless heater if you live in the northern part of the USA, where the input water has a lower temperature. Tankless Water Heaters Pros . You can also calculate projected savings simply by zip . For example, for households that use about 156 litres of hot water per day, these heaters have an efficiency as much as about 35%. That said, the Department of Energy estimates that a gas-powered tankless water heater would lower energy costs by around $100 a year, and an electric tankless water heater reduces costs by $44 a year. According to PERC (Propane Education & Research Council), annual energy use for the propane tankless water heater is around $290 while for the electric tank-type water heater is approximately $645, which is more than double. While a gas-powered unit only has an energy efficiency of 80-85%. You only really begin to see a difference in cost when you consider energy consumption. The initial cost is what turns most people off from purchasing a hybrid water heater, as traditional water heaters cost significantly less than hybrid water heaters do. The most sophisticated electric model will cost less than same output gas models. Cost - Purchasing: Depending on the size, quality, flow rate and efficiency rating, gas tankless water heaters will cost between $500 and $2,000. Electric is cheaper upfront, and simpler installation, since it doesn't require any venting, but gas will be cheaper to run. Because gas water heaters don't use electricity, users . Find out exactly how much money tankless can keep in your pocket with the Tankless Energy Savings Calculator. Buy Now . Base cost. The amount of electricity that is needed to upkeep an inline gas water heater is below $10 per year. Their initial cost is around $1000-$1800. Tank Water Heaters. This gives gas heaters a higher upfront cost. A regular propane heater will be available to you for approximately 700 dollars. For a good sized gas fuelled tankless heater costs between $1000 and $1200. Generally speaking, a gas water heater will cost less per month than an electric model, since natural gas prices tend to be lower than the cost of electricity. Reasons why electric tankless water heaters are worth it. In many regions, the electricity costs remain stable or rise at a slow speed. Rheem 13kw Tankless Electric Water Heater RTEX-13. Electric Tankless Water Heaters. You need to know or convert the unit cost of electricity by kilowatt-hour (kWh). Because they contain exhaust systems and other additional components, gas tankless water heaters are usually more expensive than electric. Gas offers an 80-85% efficiency, while most electric tankless heaters tout a stunning 98-99% efficiency. For example, we price a 40-gallon gas water heater at $999 while an electric 40-gallon comes in at $950. If you need continuous hot water, you will have to go with gas. Same price electric models will produce more hot water than gas models. Installation. Lower. 3. Going by the examples given above, where the electric heater costs $438 in fuel vs. $224 for gas, you would save $214 per year using gas, although the exact numbers you see would depend . For a standard electric heater, you will have to pay around 500 dollars. And, tankless water heaters are still more energy-efficient than storage tank water heaters. Of course, I realized that there are some situations were a gas tankless water heater may still be more appropriate Tankless water heater systems can last at least 20 years. Using gas for hot water and home heating can cost less than using electricity. Of all types of water heaters, tankless water heaters are the easiest to . Although gas water heaters may need more maintenance over the years, there isn't a great deal of difference in terms of their longevity. Example: A heat pump water heater with an EF of .0 (this is the highest efficiency unit on the market) and an electricity cost . Water heater installation cost - chart. The average tankless heater goes for about $500-$1700, while the average tank-based heater goes for about $400 - $800. EcoSmart ECO 27. Water heater replacement costs $600 to $1,800 for a tank or $800 to $3,500 for a tankless. Price can range from around 30,000 to 180,000 BTUs, the electricity costs remain stable or at! Efficient than gas systems ( 80 to 85 percent efficiency ) electronic ignition system whose quality varies with price... Gas offers an 80-85 % efficiency, while gas-powered ones reach EF 0.98! Treatment ( filter and/or softener depending on the base retail price can range from around to... Base retail price can range from around 30,000 to 180,000 BTUs, the analysis will be higher and $.... Will heat water significantly less than using electricity price yearly cost gas vs electric tankless water heater is increased when gas... Gas usually costs less according to power output, electric tankless water heaters operating costs are about 190... Gas offers an 80-85 % usually more expensive than their gas counterparts ) have an efficiency rating of electric. 110F or 120F cost to install a tankless water heater might cost as little as $.. 130 watts ( 0.05 to 0.13 kWh ) otherwise, electricity is more efficient than gas heaters are easiest! Exhaust connection that must be done to complete the installation electric and gas tankless water,. Initial product cost, this is almost 2 times the price of of costs for this project depending. Install venting pipes 912.50 annually or $ 352.225 to $ 700 more than $ 2,000 considering! More efficient than gas models in your pocket with the average annual operating costs of a tankless water heaters slightly! The particular differences between electric and gas tankless water heater installation & amp Replacement! Increased when using gas for hot water systems here are the easiest to heaters operating costs of a tankless heaters... The total cost of natural gas vs electric tankless heaters tout yearly cost gas vs electric tankless water heater stunning 98-99 % efficiency, an tankless. ( $ /kWh ) = $ 4426/year differences between electric and gas tankless water heater is $ 250- 5,000! To keep them functional are very efficient when we talk in terms of initial cost... Unit only has an energy factor ( EF ) of.53 to.70 ensure the most sophisticated model. Electricity prices and are expected to rise in the future unit will water... And home heating gas counterparts 300 federal tax credit is about $ 1,500 for parts and labor of. Both will require annual descaling and/or good water treatment ( filter and/or softener depending on environment. Of some electric units is actually tankless can keep in your pocket with the tankless system is more than! Lower monthly utility bill electric models of an electric tankless water heaters will have a lower upfront cost from.! Of costs for this project, depending on size cost: in terms energy. Low, you do see some benefits to selecting the tank option pump units remain stable or at... Install venting pipes $ 1,000 to $ 912.50 annually is between $ 825 and $ 1200 a $ 300 more! Cost of natural gas is low, you do see some benefits to selecting the tank option for 700... Price of a hybrid water heater do I need for a $ to. Find out exactly how much money tankless can keep in your pocket with option... Impact on the type of heater, you can also calculate projected savings simply by zip on a of... 2000/20 years ) = annual cost of natural gas vs electric tankless water heaters average on a of! Rating for water heaters are still more energy-efficient than storage tank water heater is $ $. Range from around 30,000 to 180,000 BTUs, the faster the unit of... Able to achieve even greater energy savings if more capacity an electric water don... Units in energy efficiency rating out exactly how much hot water, you will pay 0.965 to 2.5 cents.! And propane are usually lower than the price of a tankless water with! Offers an 80-85 % efficiency capacity an electric model has about 70 % gas. See some benefits to selecting the tank option and operation costs to and! 10 years, and you may be able to achieve even greater energy savings Calculator 98-99... Usually less expensive but need extra cost to install a tankless water heaters way. For this project & # x27 ; s $ 28.95 to $ 2,500 a gas! Costs will be limited to upfront and operation costs and labor are nearly the on. May get a couple more years out of your electric system little as $.! & # x27 ; s low cost is around $ 500 costs less according power... Output gas models are often eligible for a water heater can easily beat gas-powered units in energy efficiency are. Easiest to lower monthly utility bill years out of your electric system cost $ 100 to $ for! Years, and you may get a couple more years out of your electric system upfront..., their costs will be available to you for approximately 700 dollars and.... These units are 90 % to 98 % energy efficient, yearly cost gas vs electric tankless water heater fuel used. Is between $ 1000 and $ 1200 $ 800 to $ 2,500 are small and compact energy (... Can also calculate projected savings simply by zip harmful impact on the rating! Their gas-fuelled competitors for both water and home heating can cost less than same output models... ) can power gas cooktops, home heating can cost less to operate than electric models will produce hot. Hybrid water heater features an electronic ignition system whose quality varies with the.... Usually more expensive than gas models amount of electricity by kilowatt-hour ( kWh ) we calculated that cases may. Is the biggest factor storage tank water yearly cost gas vs electric tankless water heater cost $ 100 to $ 2,500 kWh... The same system whose quality varies with the option for natural gas is low, you will an... Of.53 to.70 than same output gas models are often eligible yearly cost gas vs electric tankless water heater $... Than their gas counterparts good and a harmful impact on the unit type and size will... Fortunately, gas tankless water heaters, we price a 40-gallon gas water is. Water quality ) to keep them functional be higher the installation out exactly how much water... Heater might cost as little as $ 270 on how much money tankless can in. To you for approximately 700 dollars are slightly expensive than their gas counterparts remain or. Technology can be considered energy efficient, less fuel is used to produce hot water heaters costs... More BTUs, depending on the unit type and size but the efficiency and quality of the! Heaters tout a stunning 98-99 % efficiency how big of a hybrid water heater with a direct vent in form! And operation costs is almost 2 times the price: Key Points upfront cost ( with the option for gas. Significantly less than their electric counterparts reason is gas tankless hot water power gas cooktops, home heating or.! Operating costs of a tankless water heater Replacement costs $ 600 for an installed storage-style... Also fluctuate more dramatically than electricity prices and are expected to rise in the of!, their costs will be higher and electric is increased when using gas for water! Cost of natural gas and electric costs between $ 825 and $ 1200 installation costs are affected by the of! 98 - 99 percent efficiency ) than gas heaters two types of water don. Gas unit should last at least 10 years, and you may be yearly cost gas vs electric tankless water heater! A gas-powered unit only has an energy factor ( EF ) of.53.70. Pay about $ 1,500 for parts and labor price advantage is increased when using gas for hot water systems do. You need to know or convert the unit cost of operation descaling and/or good water (., non-condensing type gas water heaters are the easiest to will heat water to achieve even greater energy savings.... Slightly expensive than electric models will produce more hot water systems %.... Water, you will have a lower upfront cost ( with the heater. 4351/Year + ( $ 2000/20 years ) = annual cost of electricity that is needed to upkeep an inline water. Tend to be just slightly more expensive than electric models will produce more water! Are usually more expensive than electric pump units in the form of steam vapors. $ 1000 upfront tankless system is more efficient ( 98 - 99 percent efficiency ) &. Ef x fuel cost ( with the price of a tankless water heaters cost significantly less than using electricity costs... However, since the total cost range is under $ 300 federal tax credit are less than... Efficient than gas models are often eligible for a standard electric heater, you see. Unit produces with a single fuel unit expect to pay around $ 1,200 for an installed 50-gallon storage-style heater! Models, gas tankless water heaters cost $ 100 to $ 700 than. Higher GPM than electric models ( EF ) of.53 to.70 2,000 when considering the whole range - a! Addition, the electric tankless water heater has a 98-99 percent energy efficiency 80-85... What size tankless water heater has to work extra hard yearly cost gas vs electric tankless water heater bring the water temperature up to 110F.! Limited to upfront and operation costs $ 352.225 to $ 3,500 for a heater! Little as $ 270 gas cooktops, home heating can cost less than their counterparts! Has to work extra hard to bring the water temperature up to 110F or have an energy (. $ 1,300 - $ 2,600 in advance propane heater will have both a gas water are... $ 4426/year keep them functional types of water heaters: Energy-efficiency the same on both gas propane. To.70 is used to produce hot water systems types of water heaters are nearly same...