Benefits of Electric Water Heaters

The majority of Americans use a gas water heater. However, electric water heaters continue to grow in popularity. Between 2005 - 2015, the number of homes using an electric water heater increased from 39% to 46%.

Gas water heaters and electric water heaters operate differently, producing different results. However, do homeowners really see a difference when they upgrade from gas to electric? In this article, we will address the benefits of electric water heaters, especially compared to gas water heaters. 

Want to learn about all of your water heating options? Read our blog on the different types of water heaters.

Pros of Electric Water Heaters

Eco-Friendly 

Electric water heaters don’t produce toxic fumes like gas water heaters, meaning less pollution in the air. 

We get electricity from numerous sources, some of which have a better impact on the environment than others. When your electricity comes from modern hydroelectric power plants as opposed to coal-fired power plants or nuclear power plants, the positive impact on the environment increases. 

Learn more ways to operate your water heater efficiently with our guide to water heater efficiency.

Lower Initial Investment 

Electric water heaters require a lower initial investment compared to gas water heaters. 

Electric water heaters cost slightly less than gas water heaters. However, you’ll see a majority of the savings during installation. 

Gas water heaters require ventilation to release carbon monoxide outside of the home. You will need to pay for the ventilation material as well as the labor costs. 

Electric water heaters plug into a 220/240 outlet, which is an easy and inexpensive installation process. However, if you need to upgrade your electrical panel, that can increase the installation price dramatically. It costs anywhere from $800 - $4000 to upgrade an electrical panel. Tankless water heaters require an electrical upgrade more often than tank-style water heaters. 

Safe to Operate 

Gas water heaters run on natural gas or propane. While modern units contain adequate safety features, accidents can still happen as a result of improper installation or a leak in the gas line.

Electric water heaters come with a lot less risk as long as homeowners plug them into an outlet with enough power to support the unit.

Cons of Electric Water Heaters

Low Recovery Time

Electric water heaters take almost twice as long as gas water heaters to reheat new water once the storage tank is emptied. Homeowners will need to wait longer before they will get hot water again. When in a rush in the morning, this can cause a problem.

In order to resolve this issue, homeowners have the option of a tankless electric water heater, which provides endless hot water without ever running out.

High Monthly Costs

Electric water heaters cost more to operate each month since electricity costs more than gas. The average cost to operate a gas water heater comes to about $30 a month compared to $42 a month to operate an electric water heater. This comes to roughly $144 a year.

While electricity costs more than natural gas, electricity prices are more stable than gas prices. You'll have an easier time budgeting for the month if you switch to electricity.

Power Issues

Gas water heaters will still operate if the power goes out (assuming that they don't have an electric ignition).

Electric water heaters will cease producing hot water after a power outage. Electric water heaters can also experience power surges. Power surges happen when an outlet receives more power than it can handle. The unit automatically shuts down to prevent an electrical fire hazard. In this situation, homeowners need to hit the “reset” button in order to restore power to the unit.

Different Types of Electric Water Heaters

Storage Tank Water Heater

A storage tank water heater stores warm water in a storage tank until someone needs it. As the tank depletes, new water enters the tank to replace the old water. 

Most electric storage tank water heaters have two heating elements and two thermostats, which is important if you ever need to change the temperature of the water.

Hybrid Water Heater 

A hybrid water heater stores water in a storage tank and uses highly efficient heat pump technology during periods of low demand with the option to switch to electricity when necessary.

Heat pump technology transports existing heat instead of creating new heat, requiring only minimal energy.

Point of Use Water Heater 

A point of use water heater refers to a small water heater often used to heat a particular room or fixture in a remote part of the house. These water heaters don’t produce as much hot water, being significantly smaller at roughly 5 - 10 gallons, but they also don’t require as much maintenance.

These water heaters allow homeowners to supplement a small water heater that doesn't fully meet the home's demands or provide hot water to the fixture quickly.

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