Shopping for a tankless water heater? The first decision you’ll face is electric vs gas. Both options promise endless hot water, energy savings, and a sleek, space-saving design. But each has unique benefits, costs, and installation needs that can make a big difference for your family’s comfort—and your utility bills. This guide compares electric and gas tankless water heaters side-by-side, highlights the best models, and helps you choose the right system for your home.
Quick Picks: Best Tankless Water Heaters (Electric & Gas)
-
Best Electric:
Stiebel Eltron Tempra 24 Plus – Digital controls, whisper-quiet, and highly efficient. -
Best Gas:
Rinnai V65iN Natural Gas Tankless Water Heater – Powerful, reliable, and designed for whole-house use. -
Best Budget Electric:
EcoSmart ECO 27 Electric Tankless Water Heater – Affordable, easy to install, and perfect for moderate climates. -
Best Budget Gas:
Camplux CA528 Indoor Tankless Gas Water Heater – Great value and performance for smaller homes.
Electric vs Gas Tankless Water Heater: Side-by-Side Comparison
| Feature | Electric | Gas (Natural/Propane) |
|---|---|---|
| Energy Efficiency | ~98% efficient (very little energy wasted) | ~80–93% efficient (higher for condensing units) |
| Hot Water Output | Up to 6–7 GPM (depending on model/climate) | Up to 9+ GPM (best for large homes/high demand) |
| Installation Cost | Lower; often DIY-friendly; no venting | Higher; requires venting, gas lines, pro install |
| Operating Cost | Cheaper if electricity rates are low | Cheaper if gas is affordable in your area |
| Maintenance | Low (just periodic descaling/cleaning) | Needs regular vent/flue checks and annual tune-up |
| Climate Suitability | Best for warm/moderate climates | Handles cold climates/high flow better |
| Footprint | Smallest (no venting needed) | Slightly larger (needs wall space for vent/air) |
| Power Outage? | No hot water (needs electricity to run) | No hot water (still needs power for controls/ignition) |
| Environmental Impact | Zero emissions at home (electric) | Emits CO2 (gas combustion) |
| Warranty | Typically 3–7 years (some lifetime for heat exchanger) | Typically 5–12 years (heat exchanger) |
Electric Tankless Water Heaters: Pros & Cons
- Pros:
- Highly efficient (~98%) with very little heat loss
- Lower upfront cost and easier DIY install
- No venting required—mount anywhere with proper electrical supply
- Quiet, clean, and low maintenance
- Perfect for apartments, condos, additions, and smaller homes
- Cons:
- Requires 200+ amp electrical panel for larger whole-house units
- Lower flow in very cold climates
- Not ideal for very large families or homes with simultaneous multi-shower demand
Gas Tankless Water Heaters: Pros & Cons
- Pros:
- Higher flow rates—best for large homes or heavy usage
- Works efficiently even in cold climates
- Longer warranties on heat exchangers
- Lower operating cost if gas prices are low
- Cons:
- Higher upfront cost—needs venting and gas line install
- Annual maintenance required (vent, burner check)
- Produces CO2 emissions
- Louder operation than electric
Buyer’s Guide: How to Choose Between Electric and Gas Tankless Water Heaters
- Home Size & Hot Water Demand: For 2–3 bathroom homes with moderate demand, electric may be enough. For large homes (4+ baths), gas is usually better.
- Electrical Panel Capacity: Whole-house electric models require multiple 40–50A breakers. Check your electrical service before buying.
- Natural Gas or Propane Access: Gas models require access to a supply line—installation can be costly if not already present.
- Climate: Cold climate? Gas units maintain better flow rates with chilly incoming water.
- Installation Flexibility: Electric units go almost anywhere indoors. Gas units must vent outdoors or through a roof.
- Budget: Upfront, electric is cheaper. Over time, gas can be more affordable if fuel costs are low.
- Environmental Concerns: All-electric means zero home emissions—great for eco-friendly homes.
Product Reviews: Best Electric & Gas Tankless Water Heaters
Stiebel Eltron Tempra 24 Plus (Electric)
- 24 kW, 240V—handles 2–3 baths in warm climates
- Digital controls, advanced flow control, whisper-quiet
- 7-year leak, 3-year parts warranty
Final Verdict: Best electric tankless for most families—efficient, reliable, and easy to install.
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Rinnai V65iN Natural Gas Tankless Water Heater
- 6.5 GPM—great for 2–3 baths in any climate
- Compact, Energy Star rated, and field convertible to propane
- 10-year heat exchanger warranty
Final Verdict: The top gas pick for reliability, power, and proven performance.
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EcoSmart ECO 27 Electric Tankless Water Heater
- 27 kW, 240V—up to 6.5 GPM in warm climates
- Lifetime warranty for residential installs
- Digital temperature control and self-modulation
Final Verdict: Best value for electric—budget-friendly and effective.
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Camplux CA528 Indoor Tankless Gas Water Heater
- 5.28 GPM—great for small to mid-size homes
- Works with natural gas or propane
- Simple digital controls and overheat protection
Final Verdict: Best budget gas model—easy install and strong performance.
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FAQ: Electric vs Gas Tankless Water Heater
- Which is cheaper to install?
Electric is usually cheaper to install—no venting or gas line needed. - Which is more reliable?
Both are reliable if maintained. Gas needs more annual care, electric is simpler. - What’s better for apartments or condos?
Electric, since there’s rarely gas access or venting allowed. - Do either work during a power outage?
No—both need electricity for controls/ignition. - Can I switch from gas to electric?
Yes, but check if your panel can handle the amp load before swapping.
Conclusion
Both electric and gas tankless water heaters offer big advantages over old tanks—but the best choice depends on your home’s needs, power supply, and budget. Electric models are efficient, compact, and easy to install, while gas heaters deliver higher flow for big families or cold climates. Pick the right fit from our top choices above and enjoy endless hot water, lower energy bills, and modern comfort for years to come!