Don’t wait for an emergency to your tank water heater before you decide to upgrade! Depending on the season, electricians are occasionally swamped with calls from desperate homeowners seeking to switch out their leaking, corroded, aged tank water heater for an electric one, but there’s a heavy price to pay.
The installation and repairs needed to replace an old tank water heater might be enough to persuade you to consider going electric, but there are other considerations besides the cost. Today’s electric tankless water heaters are highly energy efficient, but there are some drawbacks.
If this is your first time investing in a water heater, you should learn the Important Questions To Ask Before Choosing An Electric Tankless Water Heater. This tank vs electric tankless water heater comparison guide will help you decide which one is the right investment for your home.
Tank Water Heater: The average price of a tank water heater in today’s market is $3000 – $7000.. They’re either gas or propane fueled, which requires special piping and ventilation. With an average lifespan of 8 – 15 years, you might consider repairing your water heater tank if it’s less than 5 years old.
A.O. Smith, GE, Kenmoore, and Rheem are just some of the top brands you’ll find available in home appliance stores, department store chains, and hardware stores.
Electric: An electric tankless water heater can range in price from $800 – $1500. Their average lifespan is 20 years, which is roughly a $80 – $1500 per year expense over 10 years. Beyond that, your electric tankless water heater is paying you!
Alternatively, if your water consumption is low or you only need hot water on demand in one room, you can invest in a point of use electric tankless water heater. The average cost for one of these compact, wall-mounted units is $100 – $200.
Rinnai, EcoSmart, Rheem and Takagi are some of the leading brands currently. To ease your search, check out this review of the best electric tankless water heaters.
Tank Water Heater: Installing a conventional 40 or 60 gallon hot water tank is a big job, and complex. Besides the logistics, there’s ventilation and piping adjustments that may be required to securely access your gas line and prevent carbon monoxide poisoning. Upgrades to your piping may be required or renovations to your space for proper insulation as well,adding to the cost of installation.
- Avg Cost of Installation: $1000 -$1500
Electric: An electric tankless water heater is much smaller than a conventional boiler tank, which significantly reduces the cost of installation for you.
No piping or ventilation is required, but an upgrade to your home’s electrical circuit breaker panel may be needed to accommodate the increased output. Otherwise, the additional strain on your circuits could become a fire hazard.
- Avg Cost of Installation: $1000
Tank: Over the long term, a tank water heater isn’t as efficient as an electric model. Gas, however, keeps your water hot longer, and heats water more rapidly than electricity. The average tank water heater has a flow rate of 8 – 10 GPM’s, compared to 5 – 6 GPM’s for most electric water heaters.
Electric: Today’s tankless electric water heaters are highly efficient, with an average UEF rating of 98% or higher among the leading brands compared to 82% for tank water heaters. There are zero emissions, and electricity rates tend to be more stable than gas. You can save 20% – 30% more on your utility bill compared with a tank water heater.
Hopefully this tank vs tankless electric water heater comparison guide gives you a great place to start your search. Thanks for reading and let us know your feedback!