Choosing a water heater for your home impacts your energy bills and your family’s comfort. The right water heater can ensure a reliable supply of hot water for showers, laundry, dishes, and household cleaning. You can choose between gas or electric water heaters. Seems simple but often as you dive in you might find the information confusing, especially when you layer in heat pump water heaters and tankless water heaters. We are here to define the basics and give you the pros and cons so you can make an informed decision about whether an electric vs gas water heater is for you.
What to Know:
- Our team has been helping Portland homeowners make this decision for over 70 years. We are happy to walk you through it.
- There is no single right answer. The best water heater for your home depends on your setup, your household size, and your budget.
- Gas tends to win on monthly cost. Electric tends to win on simplicity. Heat pump models win on long-term efficiency.
- Water heating makes up about 18% of your home’s energy costs, so the choice matters more than most people realize.
What Are the Different Types of Water Heaters?
Gas Water Heaters
- Use natural gas or propane.
- Heat water faster due to a burner system.
- Generally, it costs less to operate because gas is often cheaper than electricity.
- Higher First Hour Rating (FHR), meaning more hot water per hour.
Electric Water Heaters
- Powered by electricity, using resistance coils to heat water.
- More energy-efficient, converting almost all the electricity into heat without much waste.
- Safer and easier to maintain with fewer moving parts.
- Typically have a slower recovery rate, meaning they heat water more slowly.
Heat Pump Water Heaters
- Also electric, but works very differently from standard electric models.
- Pull heat from the surrounding air and transfer it to the water, rather than generating heat directly.
- Far more efficient than standard electric models, using up to 2.5 times less energy.
- Higher upfront cost, but lower operating costs over time.
- Best suited to homes with adequate space and airflow around the unit.
In 2017, the industry adopted the uniform energy factor (UEF) as the standard measurement for water heater efficiency, making it easier to compare models across brands.
Which Type of Water Heater Is Most Energy Efficient?
Heat pump water heaters are the most energy-efficient option available today, followed by standard electric, then gas. That said, the best choice for your home depends on more than efficiency alone. Upfront costs, your home’s existing setup, and your household’s hot water demand all play a role.
Water heating accounts for roughly 18% of a household’s energy costs, so it is worth getting this decision right.
Energy Efficiency
- Standard electric water heaters boast efficiencies close to 98%, mainly because they convert almost all input energy into heat. This is particularly appealing in Portland, where hydroelectric power means cleaner electricity.
- Gas tank water heaters run at about 80-85% efficiency, while gas tankless water heaters operate at about 95% efficiency since they only heat water when you need it.
- Heat pump water heaters are the most efficient option available, and can be two to three times more efficient than a standard electric resistance unit by drawing heat from the surrounding air rather than generating it.
Which Type of Water Heater Is More Cost Effective?
The answer depends on your situation, but for most Portland homeowners, heat pump water heaters offer the best long-term value. Gas remains a competitive option for larger households with high hot water demand, and standard electric units are often the most affordable to purchase and install upfront.
Upfront Costs
If you are replacing an old water heater it typically is more cost-efficient to stick with the type you had before because converting to gas lines or electricity is an extra expense you may not want. But if you are building a new home or doing a larger update, keep the following in mind:
- Typically, gas water heaters come with higher initial purchase and installation costs due to venting requirements.
- Standard electric heaters are generally less expensive upfront and simpler to install.
- Heat pump water heaters have a higher purchase price than standard electric models, but lower monthly operating costs can offset that difference over time
Related: How Much Does it Cost to Replace a Water Heater?
Operating Expenses
Updated efficiency standards have improved so energy efficiency gains for newer models can be significant in improved operating expenses.
- In Portland, the hydroelectric-powered electric grid can make electric water heaters more cost-effective to operate, benefiting from the region’s renewable energy resources, and heat pump models take that advantage even further.
- Natural gas remains a competitively priced energy source. For households with high hot water demands, gas heaters can offer savings due to their quicker recovery rates and lower operational costs in some cases.
- Newer models across all types have improved significantly in efficiency, so upgrading from an older unit can meaningfully reduce your energy bills.
A Note on Upcoming Federal Standards:
In 2024, the U.S. Department of Energy finalized new efficiency standards for residential water heaters that take effect in 2029. For electric storage water heaters over 35 gallons, heat pump technology will become the new standard. If your current water heater is more than eight to ten years old, it is worth factoring this into your next replacement decision. Our team can help you understand what it means for your home.
How Does Performance and Capacity Compare Between Water Heaters?
Gas water heaters heat water faster and supply a larger volume quickly, ideal for high-demand households. Meanwhile, electric water heaters are more efficient, converting nearly all energy consumed into heat, but heat water more slowly than gas models.
Recovery Rate
The recovery rate of a water heater refers to the amount of hot water it can produce in a given time after being depleted.
- Common recovery rates for electric models are around 20-22 gallons per hour.
- Gas models typically boast higher recovery rates, ranging from 30-40 gallons per hour, with commercial units even exceeding 100 gallons per hour.
- Heat pump models vary by unit but generally fall between standard electric and gas recovery rates.
Capacity Options
When selecting a water heater, whether gas or electric, size is a crucial factor to consider to ensure it meets your household’s hot water needs efficiently. The capacity of water heaters is typically measured in gallons, and the size you’ll need depends on the number of people in your household and your peak water usage.
- Small units (20 to 30 gallons) work well for one to two people.
- Medium units (40 to 50 gallons) are designed for households of three to four.
- Large units (55 to 80 gallons) are suited to homes with five or more occupants.
Both gas and electric models are available across these sizes. Keep in mind that newer tank models may be slightly larger than older ones due to added insulation, which can matter when fitting a replacement into an existing space.
What About Tankless Water Heaters?
Tankless water heaters heat water on demand rather than storing it, and they are available in both gas and electric options. They are worth considering if you have limited space, want a longer-lasting unit, or have specific high-demand needs in part of your home.
Read More: Tank vs Tankless Water Heater: Which is the Smart Decision?
What Does Water Installation Involve?
When choosing between gas and electric water heaters, several factors beyond just the initial cost and operational efficiency come into play. Each type of water heater installation has its unique requirements and considerations:
Gas Water Heaters
- Ventilation: Gas water heaters emit exhaust that must be vented outside, requiring proper ventilation systems to ensure safety.
- Gas Line: Availability of a natural gas line is a prerequisite. If your home isn’t already equipped with a gas line, installing one can significantly increase the initial setup costs.
- Space Requirements: While both types need space, gas heaters often require more due to the need for ventilation systems. This might limit placement options within a home.
Electric Water Heaters
- Electrical Requirements: Electric heaters require a suitable electrical outlet and often necessitate a dedicated high-capacity circuit, which may require an electrical system upgrade in some homes.
- Placement Flexibility: Due to the lack of need for venting, electric water heaters offer more flexibility in placement. They can be installed in more confined spaces or areas without direct venting access.
- Safety: Generally considered safer than gas models since there’s no risk of gas leaks or carbon monoxide poisoning. However, proper installation and maintenance are still crucial to prevent any electrical hazards.
Heat Pump Water Heaters
- Electrical Requirements: Also electric, so they require a dedicated circuit.
- Space Requirements: Need adequate surrounding air space (at least 1,000 cubic feet) and a location that stays above 40 degrees Fahrenheit, and they may not be the right fit for very small utility closets or homes without appropriate space.
Common Considerations for All Types
- Choose the right size for your household to avoid running out of hot water or wasting energy.
- New tank models may be slightly larger than what you are replacing due to added insulation, so measure your space before purchasing.
- Regular maintenance extends the life of any water heater, regardless of type.
How Long Does a Water Heater Last and What Kind of Maintenance Is Required?
With proper maintenance, most water heaters last anywhere from 8 to 20 or more years depending on the type. Knowing where your current unit falls in that range can help you plan ahead rather than react to an unexpected failure.
Typical Lifespans
- Gas tank water heaters: 8 to 12 years
- Standard electric tank water heaters: 12 to 15 years
- Heat pump water heaters: up to 15 years
- Tankless water heaters (gas or electric): 15 to 20 years or more
Routine Maintenance for Gas Water Heaters
- Check the pilot light regularly
- Ensure the venting system is clear of obstructions
- Inspect the gas line for leaks
Routine Maintenance for Electric and Heat Pump Water Heaters
- Check the heating element and thermostat for proper function
- Ensure electrical connections are secure
- For heat pump models, clean the air filter periodically
General Maintenance for All Water Heaters
- Periodically flush the tank to remove sediment
- Test the pressure relief valve for correct operation
- Inspect the anode rod to prevent corrosion
Related: How Long Do Water Heaters Last?
What Is the Environmental Impact of Gas and Electric Water Heaters?
For homeowners thinking about their long-term environmental footprint, a heat pump water heater running on Portland’s clean grid is one of the lowest-impact options available today.
Electric and Heat Pump Water Heaters: Electric water heaters powered by renewable energy sources provide a cleaner alternative to gas. In Portland, where hydroelectric power plays a major role in electricity production, the environmental case for electric and heat pump models is especially strong. Heat pump water heaters go further by using significantly less electricity than standard electric models to produce the same amount of hot water.
Gas Water Heaters: Gas water heaters emit CO2 and methane, which contribute to greenhouse gases. Older or inefficient gas models tend to produce more emissions than newer, high-efficiency units.
FAQs About Gas and Electric Water Heaters
What is the difference between a gas and electric water heater?
Gas water heaters use a burner powered by natural gas or propane. Electric models use heating elements powered by your home’s electrical system. Gas units need a gas line and proper venting. Electric units need a dedicated 240-volt circuit but no venting.
What is better, a gas or electric water heater?
It depends on your home. Gas tends to be a better fit if you already have a gas line and a larger household. Electric is often the simpler choice if you are replacing an existing electric unit or considering a heat pump model. Our team can help you figure out which makes the most sense for your situation.
What is more efficient, a gas or electric water heater?
A standard electric heater converts energy more efficiently than gas, but electricity costs more per unit, so the monthly savings often go to gas. The exception is a heat pump water heater, which can be two to three times more efficient than either. If long-term energy savings matter to you, it is worth asking about.
Is a gas water heater cheaper than electric?
Usually yes, on monthly operating costs. Natural gas typically costs less than electricity, so gas units are cheaper to run. Keep in mind that adding a gas line if you do not have one adds to the upfront cost. A heat pump electric water heater can also close that gap, and may qualify for energy efficiency rebates.
Can I switch from gas to electric, or electric to gas?
Yes, but it involves more than just swapping the unit. Switching from electric to gas means adding or extending a gas line and installing proper venting. Going the other direction means running a new 240-volt electrical circuit. Both are doable, and sometimes worth it depending on your energy costs or goals. A technician can tell you what your home would need and whether it makes financial sense.
How long does a water heater last?
Most traditional tank water heaters last 8 to 15 years. Gas and electric units are similar in lifespan, though regular maintenance can extend either one. If your water heater is over 10 years old and starting to show signs of trouble, it is usually more cost-effective to replace it than repair it. We can take a look and give you an honest assessment.
What is a heat pump water heater and is it worth it?
A heat pump water heater uses electricity to pull heat from the surrounding air and transfer it to the water, rather than generating heat directly. This makes it significantly more efficient than a standard electric or gas unit. The upfront cost is higher, but lower energy bills and available rebates can make it a smart long-term investment, especially if you are replacing an older electric model. It works best in spaces that stay above 40 degrees, like a basement or utility room.
Water Heater Installation in Portland
Many factors go into deciding when to replace your water heater or whether a gas or electric water heater is the best for your household. Jacobs Heating & Air Conditioning experts are here to guide you. We’ve been servicing the Portland area for over 70 years and our experience shows in the quality of our work. We carry a variety of water heaters so that your family has the best and most efficient water heater with no cold showers.
Avoid extra costs and unnecessary repairs by scheduling a maintenance check for your existing water heating system before issues arise. No matter what you need, we’re always just a phone call away.
