Comparing Efficiency: Gas vs Electric Tankless Water Heaters

I personally prefer using smaller sized electrical tankless water heaters and placing them where they are needed. That means not having to wait for the hot water to travel from the other end of the house.

However, that problem could be solved by using a recirculating pump.

Also, smaller sized electric tankless water heaters may not require upgrading the electric service within the house.

Gas and electric tankless water heaters are famous for homeowners looking for energy-saving and financially savvy systems.

In this article, we will investigate the critical contrasts of gas vs electric tankless water heaters, zeroing in on efficiency and the job of temperature controllers.

Gas Tankless Water Heaters

Gas tankless water heaters depend on flammable gas or propane to warm water on request.

One of their prominent benefits is the quicker warming rate contrasted with their electric partners. The warming system starts the second you turn on the tap, giving an immediate amount of hot water.

This efficiency is especially favourable for extended families with simultaneous high-temperature water needs.

Temperature controllers assume a critical part in gas tankless water heaters, permitting clients to set and keep the ideal water temperature at all times. This prevents having to heat water to a higher temperature than need be, which saves money.

High-level temperature controllers in gas units frequently incorporate elements like computerised indicators and programmable settings, improving client control and accommodation.

Nonetheless, it’s crucial to note that gas tankless water heaters might cost more to begin with because of installation necessities. Such as the requirement for code compliant ventilation.

However, their efficiency and long-haul energy savings can provide lower monthly fuel bills compared to tank style water heaters.

Top Gas Tankless Water Heaters Compared

ModelFlow & PowerBest ForKey FeaturesLink
Rinnai RX199iN Condensing Tankless Water Heater Rinnai • Natural Gas / Propane • Indoor/Outdoor Top Pick

The Rinnai RX199iN is a high‑capacity condensing gas tankless water heater designed for whole‑house use, delivering consistent hot water even in cold climates. With flexible indoor or outdoor installation and smart controls, it’s ideal for homeowners who want premium efficiency, long‑term reliability, and lower energy bills compared to traditional tank heaters.

Flow & Power
  • Max GPM: Up to 11.1 GPM
  • BTU Rating: 199,000 BTU
  • Type: Condensing, high‑efficiency
Best For
  • Large homes with multiple showers
  • Cold‑climate installs needing strong flow
  • Homeowners prioritizing efficiency and longevity
Key Features
  • Indoor or outdoor installation flexibility
  • Smart Sense controls and diagnostics
  • Condensing design for higher energy savings
  • Rebate‑friendly efficiency in many regions
Amazon
FOGATTI Instagas Comfort 180S Outdoor Tankless FOGATTI • Natural Gas • Outdoor Only Best Outdoor

The FOGATTI Instagas Comfort 180S is a powerful outdoor‑only gas tankless water heater that keeps the mechanicals outside while still delivering strong whole‑house performance. It’s a great fit for homes where indoor space is tight or venting is complicated, but reliable, on‑demand hot water is non‑negotiable.

Flow & Power
  • Max GPM: Up to 8.1 GPM
  • BTU Rating: 180,000 BTU
  • Type: Non‑condensing outdoor
Best For
  • Homes in mild to moderate climates
  • Outdoor‑only installations
  • Families needing multiple fixtures at once
Key Features
  • Compact outdoor cabinet saves indoor space
  • CSA‑certified safety and performance
  • Designed for whole‑house on‑demand hot water
  • Good balance of price and capacity
Amazon
APUS 140,000 BTU Indoor Tankless Water Heater APUS • Natural Gas • Indoor Best Value

The APUS 140,000 BTU indoor gas tankless water heater delivers strong performance at a budget‑friendly price, with Wi‑Fi app control and “zero cold water” technology for more comfortable showers. It’s a smart choice for homeowners who want modern features and whole‑house coverage without paying premium‑brand prices.

Flow & Power
  • Max GPM: Up to 6.8 GPM
  • BTU Rating: 140,000 BTU
  • Type: Indoor, high‑efficiency design
Best For
  • Small to mid‑size homes
  • Users who want app‑based control
  • Upgrades from older tank heaters on a budget
Key Features
  • Smart Wi‑Fi app control
  • “Zero cold water” comfort technology
  • Compact indoor footprint
  • Strong value for the feature set
Amazon
Rheem RTG‑84XLN‑3 Outdoor Tankless Water Heater Rheem • Natural Gas • Outdoor Trusted Brand

The Rheem RTG‑84XLN‑3 is a high‑efficiency outdoor gas tankless water heater from one of the most trusted names in water heating. With strong flow, durable construction, and compatibility with many utility rebates, it’s a solid long‑term upgrade for homeowners who want dependable, low‑maintenance hot water.

Flow & Power
  • Max GPM: 8.4 GPM
  • BTU Rating: 180,000 BTU
  • Type: High‑efficiency non‑condensing
Best For
  • Families with 2–3 simultaneous fixtures
  • Outdoor installs in moderate climates
  • Buyers who prioritize brand reputation
Key Features
  • High‑efficiency design for lower gas use
  • Outdoor mounting simplifies venting
  • Backed by Rheem’s support network
  • Often eligible for energy rebates
Amazon
Novieex 4.3 GPM Natural Gas Tankless Water Heater Novieex • Natural Gas • Indoor Budget Pick

The Novieex 4.3 GPM gas tankless water heater is a compact, budget‑friendly option for smaller homes, apartments, or cabins. It offers on‑demand hot water with a simple LED display and straightforward controls, making it a practical upgrade from older tank units when space and cost are both tight.

Flow & Power
  • Max GPM: Up to 4.3 GPM
  • BTU Rating: ~100,000 BTU class
  • Type: Indoor, compact design
Best For
  • Small homes, cabins, or apartments
  • 1–2 fixtures running at a time
  • Cost‑conscious buyers
Key Features
  • Simple LED temperature display
  • Compact footprint for tight spaces
  • Good entry‑level tankless option
  • Lower upfront cost than premium brands
Amazon

Electric Tankless Water Heaters

Electric tankless water heaters, then again, utilise electrical components to warm water as it moves through the unit. For the most part, they have a lower upfront expense and more straightforward installation contrasted with gas units.

However, their water heating ability may not be as fast as gas powered tankless heaters.

Electric tankless water heaters cannot provide as much hot water volume as gas tankless water heaters. Which may require more than one tankless heater to provide instant hot water for multiple simultaneous uses.

The solution is to have smaller units at each location of water use. This also reduces the need for upgraded electrical wiring that larger tankless heaters require. The net result can be a lower overall installation cost.

Temperature controllers are similarly significant in electric tankless water heaters, guaranteeing clients can set and keep the ideal water temperature. Temperature control accuracy increases energy efficiency, as clients can avoid pointless warming and forestall energy squandering.

Top Electric Tankless Water Heaters Compared

ModelSpecsBest ForFeaturesAmazon
Stiebel Eltron Tempra 36 Plus Stiebel Eltron • 36 kW • Whole House Top Pick

A premium whole‑house electric tankless heater with industry‑leading flow control, ultra‑quiet operation, and exceptional reliability. Ideal for high‑demand homes needing consistent hot water without temperature dips.

  • Power: 36 kW
  • Flow: Up to ~7.5 GPM (varies by climate)
  • Voltage: 240V
  • Large homes
  • Simultaneous showers
  • Premium performance
  • Advanced Flow Control
  • Silent electronic operation
  • No venting required
Rheem RTEX‑24 Rheem • 24 kW • Whole House Best Value

A strong performer with excellent efficiency and digital temperature control. A great balance of price, reliability, and whole‑home capability.

  • Power: 24 kW
  • Flow: ~5–6 GPM
  • Voltage: 240V
  • Medium homes
  • Budget‑conscious upgrades
  • Reliable daily use
  • Self‑modulating tech
  • Digital thermostat
  • Compact footprint
Eemax HA036240 Eemax • 36 kW • Whole House Premium

A commercial‑grade electric tankless heater offering powerful output and exceptional durability. Ideal for demanding households or light commercial use.

  • Power: 36 kW
  • Flow: ~6–7 GPM
  • Voltage: 240V
  • High‑demand homes
  • Commercial‑grade reliability
  • Heavy usage
  • Endless hot water
  • Durable build
  • Trusted brand
WINTEMP 36kW WINTEMP • 36 kW • Whole House High Output

A powerful, budget‑friendly whole‑house heater with WiFi control and strong GPM. Great for users wanting high output without premium pricing.

  • Power: 36 kW
  • Flow: Up to 8.7 GPM
  • Voltage: 240V
  • Large homes
  • Multiple fixtures
  • Smart‑home users
  • WiFi control
  • LED display
  • Strong GPM for price
WINTEMP 27kW WINTEMP • 27 kW • Whole House Mid‑Range Pick

A strong mid‑range whole‑house heater with WiFi control and efficient self‑modulating operation. Excellent for medium‑size homes.

  • Power: 27 kW
  • Flow: Up to 6.3 GPM
  • Voltage: 240V
  • Medium homes
  • Smart‑home integration
  • Energy‑efficient upgrades
  • WiFi control
  • LED display
  • Space‑saving design

Energy Source and Efficiency

Gas and electric tankless water heaters differ in their energy sources. Gas models utilize natural gas or propane, while electric ones rely solely on electricity.

Despite this difference, both types offer greater efficiency than conventional water heaters, which constantly heat stored water, resulting in higher energy consumption.

Efficiency Ratings

Electric tankless water heaters typically boast a UEF (Uniform Energy Factor) rating of .96 or higher, indicating superior energy efficiency. On the other hand, gas tankless water heaters have a UEF rating ranging between .81 to .96, slightly lower than their electric counterparts.

Although both types deliver significant energy savings compared to traditional water heaters, electric models often exhibit slightly higher efficiency.

Additionally, electricity is regarded as a more environmentally friendly option due to its lower greenhouse gas emissions than the combustion process associated with gas heating.

Cost Comparison

The cost disparity between gas and electric tankless water heaters encompasses various factors, including initial purchase price, installation complexity, and ongoing operational expenses.

Initial Costs

Electric tankless water heaters generally cost less to purchase, typically ranging from $200 to $700 without installation.

In contrast, gas tankless water heaters tend to have higher initial purchase prices, ranging from $300 to $2,000 without installation.

The discrepancy in initial costs can be attributed partly to the manufacturing complexity of gas tankless water heaters, which require gas lines and proper ventilation.

However, it is essential to consider long-term operational costs, such as electricity and gas rates, which can influence overall savings.

Operational Expenses

Account for monthly operational expenses, including energy bills and maintenance costs. While electric heaters may entail lower maintenance expenses, electricity rates vary by location and may impact overall expenditures.

Gas heaters, conversely, may necessitate more frequent maintenance but could prove to be more cost-effective in regions with lower gas prices. 

Hot Water Production

The ability to provide hot water on demand is a critical consideration when comparing gas and electric tankless water heaters. Which brings us to flow rates.

Flow Rates

Gas tankless water heaters typically offer higher flow rates, ranging from 3.5 to 11 gallons per minute (GPM). In comparison, electric tankless water heaters generally exhibit lower flow rates, typically between 1 to 7 GPM.

Gas heaters excel in delivering a continuous and ample supply of hot water, making them well-suited for households with high hot water demand. Conversely, electric models may struggle to meet the simultaneous demands of multiple significant appliances due to their lower flow rates.

Temperature Controller

Both gas and electric tankless water heaters are equipped with temperature controllers to regulate water temperature efficiently. These controllers ensure consistent and precise hot water delivery while optimizing energy usage.

Gas vs Electric Tankless Water Heaters
When choosing between Gas vs Electric Tankless Wate Heaters, add up the purchase price and the installation price.

Other Considerations When Choosing Gas vs Electric Tankless Water Heaters

Factors such as installation complexity, maintenance requirements, and environmental impact should also be considered.

Installation Complexity

Gas tankless water heaters require additional infrastructure for gas supply lines and venting, making installation more complex and potentially costlier. Whereas electric tankless heaters do not require venting.

Maintenance

Gas tankless water heaters generally need more maintenance than electric ones, which can result in additional costs over time.

Environmental Impact

While gas heaters may offer higher efficiency, consider the environmental impact of gas emissions. Electric heaters produce fewer emissions and might be a more environmentally friendly option.

Point Of Use Tankless Water Heaters

These 110-120 volt tankless heaters are only useable for one sink or one shower because of their low flow rates.

Flow rates for these heaters are often times too low to be used for showers except in very warm climates.

Read my article: 9 Best Performing 120-110 Volt Tankless Water Heater Reviews

Conclusions On Gas vs Electric Tankless Water Heaters

While choosing gas and electric tankless water heaters, it is critical to consider factors like efficiency, cost, high-temperature water production, maintenance requirements, and environmental impact.

Gas models ordinarily offer higher flow rates and efficiency, while electric ones frequently have lower upfront expenses and might be all the more environmentally agreeable.

At last, the decision relies upon individual inclinations, family temp water interest, financial plan contemplations, and long-haul sustainability goals. By cautiously gauging these variables, homeowners can go with an educated choice to guarantee a proficient and dependable heated water supply for their homes.

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