Electric Water Heater or Gas Water Heater

Q: Which is the better choice, an electric water heater or a gas water heater?

A: For years consumers, contractors, heating and cooling professionals and many others have debated on which type of water heater should be used, gas or electric. There are many arguments for both sides, but some are a bit misleading. One of the most common misperceptions has been that electric water heaters are more expensive to operate than gas units. The reality is, electric units cost less to use than natural gas or propane to heat water for your home.

The reason for this misperception is sometimes the bright yellow Energy Guide label on the sides of new water heaters. The labels are not always accurate for every area in the United States. This label is part of the U.S. Department of Energy requirement and uses national averages to figure annual operating costs. Your REMC's electric rate is below the national average and the natural gas and propane rates in our area are above the national average quoted on these labels. When you calculate costs of operation for these appliances in your home, you must use loca rates for the cost comparisons to be valid. You can also "Ask REMC" and Bob Geswein will give you the actual government annual operating costs when the correct rates for our area are used.

A second perception is that gas water heaters recover a little faster than electric units when all the on-hand hot water has been used up. In reality, the difference in recovery time is only a matter of minutes, not enough to really make a difference in your daily routine.

Safety is a major issue to be aware of if you use or are contemplating using a gas water heater. One potential danger of a gas water heater is backdrafting of carbon monoxide in your home. Have you known someone who couldn't seem to shake a case of the flu? The symptoms for a viral flu sickness and carbon monoxide poisoning are nearly identical – achiness, nausea, dizziness. Homes are being built tighter these days to help keep conditioned air in and this can lead to an inadvertent back draft of flue gas including carbon monoxide into the home. A water heater flue is nothing more than a 4" hole in the ceiling and roof. This unobstructed hole is an easy avenue for air to come back into your home. A bathroom exhaust fan, clothes dryer or even a leaky return duct in the home's heating system can cause back drafting to occur. This hole in your roof also causes a loss of conditioned air. This obviously cuts down on the energy efficiency of your home.

Many people may be unaware of how economical electric water heaters are to install in a new home. Harrison REMC customers can also take advantage of our rebate program and get a $150 rebate when they purchase an electric water heater for their new home or if they are converting from gas to electric. In the chart below, note the differences in total installation price for an average new home.

Gas Water Heater vs. Electric Water Heater

Need This Information in a Chart

40 Gallon Electric Water Heater 40 Gallon Gas Water Heater Purchase Price Cost of Flue Installation Cost of gas line Installation Cost of Electric wiring Cost of Plumbing REMC REBATE PROGRAM Total cost of Installation $250 none none $100 $360 ($150) $560 $325 $200 $150 none $360 none $1035

Note: Some homes require combustion air be provided to gas water heaters which adds to the above $1035 cost. Also, the above information reflects averate prices for the Harrison REMC service area.

Summary of Water Heater Comparison:

• Due to rising gas prices, operating costs of an electric water heater can be less than a gas unit.
• Electric units are much less expensive to install.
• Electric units are easily installed nearly anywhere in a new home with no flue or gas line requirements.
• A homeowner can save valuable conditioned air with an electric unit, since it doesn't require a flue.
• Back drafting is not a hazard with electric water heaters.

To prevent your electric costs from going up in the future, do not install a tankless electric water heater. Ask REMC for more information on this technology before you make this investment. You deserve the rest of the story. For a limited time, Harrison REMC is offering a special rebate program for those who want to remove an existing gas water heater in their home and replace it with an electric water heater. Contact REMC for details.