Gas vs. Electric Water Heaters: Key Differences Every Homeowner Should Know

April 3, 2025
Water Heaters in Somerset, KY

Approximately 60% of U.S. households get hot water from fuel-burning systems, while the other 40% have electric models. You have the choice of either configuration for your home. To make the best choice for your house, it helps to understand the key differences between gas and electric water heaters.

Gas Water Heaters Deliver a Faster Heating Speed

A notable advantage of gas water heaters is how quickly they heat water. You can expect a gas model to heat water about twice as fast as an electric counterpart. This is notable with tank water heaters that must replenish the stored hot water supply. If you run out of hot water, you may have to wait between 60 and 90 minutes with an electric model. This difference is also important for on-demand water heaters, as gas models have a shorter delay in delivering hot water.

Electric Water Heaters Cost Less to Purchase

Gas water heaters have a more complex design with additional components, making them more expensive to manufacture. As a result, electric models generally have a lower upfront cost compared to gas options.

Gas Water Heaters Are More Expensive to Install

The cost of a new water heater goes beyond the unit itself. Installing a gas water heater typically requires additional expenses for gas piping and ventilation. If your home doesn’t already have a gas connection or if existing gas lines or vents need modifications, the installation costs can be even higher.

Electric Water Heaters Are More Energy Efficient

Electric water heaters convert nearly all the electricity they use into heating. That isn’t the case with gas water heaters. Standard models can waste 20% of the fuel they burn, and even high-efficiency models can waste as much as 10%.

Gas Water Heaters Usually Cost Less to Run

While it’s true that electric water heaters are more efficient, it doesn’t tell the whole story for the average consumer. Electricity is more expensive than natural gas. The industry estimates that a household with a gas water heater will spend about $30 a month. Households with electric water heaters, on the other hand, will spend about $42 a month.

Gas Water Heaters Cost More to Maintain

Gas water heaters tend to require more maintenance due to the additional components involved, such as the burner, gas lines, and ventilation system. These elements require regular attention to ensure they function safely and efficiently. Over time, parts like the burner or venting system can accumulate debris or develop issues, leading to the need for more frequent upkeep compared to electric models.

Annual maintenance is of paramount importance when it comes to fuel-burning water heaters. These systems create toxic gases as a byproduct of the combustion process. Well-functioning water heaters vent the gases outside the home. Malfunctioning water heaters can allow the gases to mix with the air you breathe.

Fuel Availability Is an Added Consideration

Electricity is available to nearly 100% of U.S. homes, including those in rural areas. That means that practically every household has the option of installing an electric water heater. This isn’t necessarily the case with fuel-burning water heaters. The most popular option is natural gas, but only about 60% of homes in the U.S. have access. Liquid propane is an alternative, but it’s more expensive. You will also have to deal with the hassle of maintaining and refilling a storage tank on your property.

Rebates and Tax Credits Are Typically Exclusive to Gas Water Heaters

The U.S. Environmental Protection Agency (EPA) often reserves ENERGY STAR certification for fuel-burning water heaters, with a particular emphasis on condensing models. These models are designed with an additional heat exchanger to minimize heat loss through the flue, making them more energy-efficient. ENERGY STAR certification is essential for qualifying for most energy incentives, which can help reduce the initial cost of installation. These incentives include federal tax credits, as well as rebates from manufacturers and utility companies, which are typically available for gas-powered water heaters rather than electric models.

Electric and Fuel-Burning Furnace Services in Somerset

Jeffries Heating & Air + Plumbing is a residential plumbing contractor located in Somerset, KY. Our company specializes in electric and fuel-fired water heaters for homes throughout the region. We work with all water heater brands and models. Our licensed plumbers perform new installations, replacements, and conversions. We’re also available 24/7 for emergency water heater repairs.

Call today or contact us online with questions or to schedule an appointment.

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