The U.S. Department of Energy estimates that a water heater accounts for 18% of the average household’s annual energy consumption. Choosing between an electric and gas model can make a big difference in how much you spend now and over the long term.
Initial Costs
Electric water heaters are typically less expensive to purchase and install. This is because the installation process is simpler and these units require fewer components. Based on national averages, consumers can expect to pay 10-20% more for a gas unit over electric.
Of course, that assumes your home is prepared for the installation. If you’re converting from an electric water heater to gas, for instance, there may be additional costs. That can include expenses related to running the gas line and adding connections.
Energy Incentives
ENERGY STAR is an Environmental Protection Agency program that certifies water heaters and other appliances that meet its energy efficiency standards. There are rebates, tax credits, and other incentives that can significantly reduce your initial costs. Most of those incentives require a water heater with ENERGY STAR certification. The EPA generally only certifies fuel-burning water heaters, specifically those classified as high-efficiency, such as condensing water heaters.
Operating Costs
Electric water heaters are actually more energy efficient than fuel-burning systems. The issue is that they usually aren’t as cost-effective due to the cost of electricity relative to the cost of natural gas or liquid propane. The average household can expect to save about $200 a year with a gas model.
The Tankless Water Heater Exception
Tankless water heaters are inherently more energy efficient than their tanked counterparts. Even with on-demand systems, gas models are usually more cost-effective. There are exceptions, including small households with relatively low hot water demands.
Total Cost of Ownership
For most households, the total cost will be lower with a gas water heater than an electric model. This is despite the higher initial costs. Plus, energy incentives can help you recoup the added initial investment sooner.
Toxic Gases
Another consideration with fuel-burning water heaters is that they create carbon monoxide and other toxic gases as a byproduct of combustion. It’s critical to have a well-functioning exhaust system and to schedule an inspection at least annually. You should also have one or more CO detectors. Test those regularly and replace batteries and the units themselves as needed.
Maintenance
The industry recommends annual maintenance for all water heaters. That includes flushing tank water heaters and descaling tankless water heaters. Gas models have additional maintenance requirements, such as checking the air-to-fuel mixture ratio.
Would you like to install a new water heater in Lexington, TX but are unsure whether to choose gas or electric? Call Kimco today or contact us online to discuss it.
