Electric vs. Gas Tankless Water Heaters: Which One is Right for You?

Tankless water heaters have become a popular choice for homeowners looking to improve energy efficiency, save space, and enjoy an endless hot water supply. If you're considering making the switch, one of the biggest decisions is whether to go with an electric or gas tankless water heater. At BDP Plumbing & Heating Inc. in Succasunna, NJ, we help homeowners throughout northwestern NJ find the best solutions for their hot water needs. Here’s what you need to know to make the right choice for your home.

1. How Tankless Water Heaters Work

Unlike traditional water heaters that store and heat water in a tank, tankless water heaters heat water on demand as it flows through the unit. This eliminates standby heat loss, making them more energy-efficient than standard water heaters.

2. Electric Tankless Water Heaters

Pros:

✅ Energy-Efficient: Nearly 100% of the electricity used is converted into heat, reducing energy waste.

✅ Lower Upfront Cost: Typically cheaper to purchase and install compared to gas models.

✅ Compact & Space-Saving: Small, wall-mounted units are ideal for homes with limited space.

✅ No Venting Required: Since there’s no combustion, electric units don’t require expensive venting systems.

Cons:

❌ Limited Flow Rate: Electric models may struggle to provide enough hot water for large households.

❌ Higher Operating Costs: Electricity can be more expensive than natural gas, leading to higher utility bills.

❌ Requires Electrical Upgrades: Some homes may need a panel upgrade to support the high-power demand of an electric tankless system.

💡 Best For: Small to medium-sized homes, apartments, or homes without access to natural gas.

3. Gas Tankless Water Heaters

Pros:

✅ Higher Flow Rate: Gas units can handle multiple hot water demands simultaneously, making them ideal for large families.

✅ Lower Operating Costs: Natural gas is often cheaper than electricity, reducing monthly energy bills.

✅ Better for Cold Climates: Gas-powered models heat water more quickly, making them a better choice for regions with cold incoming water temperatures.

Cons:

❌ Higher Initial Cost: Gas units tend to be more expensive to purchase and install.

❌ Requires Venting: Proper venting is necessary to expel combustion gases, which can add to installation costs.

❌ More Maintenance: Gas units require periodic maintenance to prevent scale buildup and ensure safe operation.

💡 Best For: Larger households, high hot water demand, and homes already equipped with natural gas.

4. Making the Right Choice for Your Home

When deciding between an electric and gas tankless water heater, consider the following:

• Household Size & Hot Water Demand: If you have a larger family or frequently use multiple hot water fixtures at once, a gas unit is likely the better option.
• Energy Costs in Your Area: Compare electricity and natural gas rates in northwestern NJ to determine long-term savings.
• Installation Feasibility: If your home lacks gas lines or proper venting, an electric model may be the more practical choice.

5. Need Help Choosing the Right Water Heater?

At BDP Plumbing & Heating Inc., we specialize in water heater installation and maintenance for homes across northwestern NJ. Whether you’re looking for an electric or gas tankless system, our experts can help you find the perfect fit for your home and budget.

📞 Call us today to schedule a consultation and upgrade your home’s hot water system!