Electric Tankless Water Heaters
Compared with gas tankless models, electric tankless water heaters are:
- More compact and easier to place in tight spaces.
- Generally easier and cheaper to install (no venting needed).
- Ideal for smaller households or for supplemental / point-of-use applications (like a single bathroom or sink).
“Electric tankless water heaters are more compact, easier to install and ideal for smaller households or supplemental hot water needs,” says Pete Duncanson, vice president of training and development at ServiceMaster Restore.
However, they draw a lot of power. A whole-house electric tankless unit can use more than 25,000 watts of electricity, compared to around 5,000 watts for a conventional storage water heater.
If your goal is to reduce fossil fuel use, an electric tankless hot water heater is typically the better long-term choice, since electricity can come from renewable energy over time.
Gas Tankless Water Heaters
Gas-fired tankless water heaters are usually the go-to option for larger homes or households that have high hot water demand.
“Gas heaters tend to have higher flow rates and can be better for larger homes,” says Shaylin King, owner of Mr. Rooter Plumbing of Tri-Cities. “They do require proper ventilation and may have a higher installation cost.”
Key points about gas tankless units:
- Higher flow rates, making them suitable for whole-house use.
- Longer lifespan than many traditional storage water heaters.
- Considered safer than some older-style conventional water heaters when installed correctly.
- Can automatically shut off if there is scale build-up or unsafe conditions, which is good for safety but means maintenance is important.
The Bottom Line: Tankless Water Heater Pricing and Installation
When you’re pricing a tankless system, don’t just look at the unit cost—installation can be a significant part of the total bill, especially for gas units that require venting or upgraded gas lines.
- Always get an estimate or firm bid on installation costs before you commit.
- This is generally not a DIY project unless you have pro-level plumbing, gas, and electrical skills.
- You can find the best tankless water heaters at many home centers and plumbing specialty supply stores.
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