Electric vs Propane Tankless Water Heater: Ultimate Showdown

Mark Jonas

Comparison, Blog

Water heaters are a great convenience, especially when the weather gets extremely cold and it becomes difficult for you to carry out your routine activities like bathing, dishes, or even laundry.

With the advent of technology, tankless water heaters have made life easier for us.

Now, we can get hot water running down from the faucet in no time whenever we switch it on. So, the convenience is there.

However, getting a tankless water heater is not a piece of cake. You need to be mindful of a lot of factors when buying one.

Water heaters are of two types; one is operated through electricity, and the other functions with gas (natural or propane).

Between Electric and Propane Tankless Water Heater, what should we use?

The choice of getting either an electric or gas tankless water heater depends on many factors. Although, both are good choices and perform well in heating water.

But, one can only choose a heater keeping in mind the things like installation cost, efficiency, operating cost, and maintenance.

Most areas do not have both gas and electricity available simultaneously. Choosing one varies according to the facilities, circumstances, and user needs.

In this article, you will find a detailed comparison of Electric Vs Propane Tankless water heaters, that too with the strengths and weaknesses of each.

What is an Electric Tankless Water Heater?

Electric Tankless Water Heater 1 1

The concept of water heaters emerged during the 1880s, and Stiebel-Eltron invented the first-ever tankless water heater in 1929, powered to heat water on demand.

Otherwise known as an Instant water heater, an electric tankless water heater heats water without a storage tank using electricity.

An electric element inside the pipes heats the water in such heaters. The element is heated to a certain degree and automatically heats the water touching it without delay.

Strengths Of an Electric Tankless Water Heater:

Electric tankless water heaters have become an essential appliance that every household needs. They are not just easy to install but also cost-efficient, and demand low maintenance costs.

Before making any decision, let’s dive into the pros of having an electric tankless water heater;

1.   Lower Upfront and Installation Cost:

Electric tankless water heaters are comparatively cheap compared to their gas-fired counterparts. A good quality electric tankless heater can cost approximately $500 to $1000 and is cheaper.

Apart from being relatively light on the pocket, an electric tankless water heating system does not need complex installation and can be installed without any vent effortlessly.

Moreover, they are smaller and won’t accommodate much space in your home.

Electric heaters do not cause combustion, so an expensive ventilation system is not needed. However, you must have adequate electrical service to use an electric heater at your home or workplace.

Technically, all houses have nearly 140 V supply, enough to run an electric heating system, so an electricity upgrade is an exception here.

2.   Reasonable Operating Cost and Efficient:

The operating cost of electric heaters varies according to geographical differences. In some areas, electricity is cheaper but can be immensely expensive in others.

However, at any cost, an electric water heater is cheaper than a propane water heater. Moreover, gas prices are predicted to increase shortly, so an electric water heater can save you some money here!

An Energy Factor rating (EF) measures the appliance’s efficiency. The higher the Energy Factor, the greater its efficiency.

Electric tankless water heaters usually have a rating above 0.9, while propane heater ranges from 0.5 to 0.7, making it more energy efficient than a propane heater.

3.   Environment-Friendly:

Due to no combustion occurrence, an electric water heater does not release gases that are harmful to our environment. As global warming has become a major concern due to the emission of greenhouse gases, switching to an electric water heater is a great choice. In the battle of Electric tankless water heaters Vs Propane Tankless water heaters, the Electric one wins as it has a lower environmental impact.

4.   Easy Maintainance and Longevity:

Electric tankless water heaters do not require annual maintenance except frequently cleaning the inlet screen filter.

This filter ensures that no dirt gets into the heater. You just need to make sure that the filter is not blocked. That’s the only maintenance you are required to do!

Furthermore, a quality electric water heater can spend more than 20 years in your household and has an outstanding service life.

All of these qualities make Electric Tankless Water Heaters the best!

Weaknesses Of an Electric Tankless Water Heater:

Where Electric Tankless Water heaters have a lot of benefits, there are some downsides you must know before buying them.

1.   Low Flow Rate Capacity:

The flow rate capacity of a tankless heater is determined by the number of gallons a unit can heat per minute (GPM).

An electric tankless water heater can produce up to 8 GPM hot water in warm weather and 3 to 3.5 GPM hot water in cold climates.

Comparatively, propane tankless water heaters have the capacity to deliver from 8 GPM to 20 GPM hot water in both climates.

Generally, an 8 GPM rate is enough for an average family. However, if you have a large family and your water needs are higher, an electric tankless water heater might not be suitable for your household, especially in winter when the hot water demand increases.

2.   No Use during Power Outages:

Electric Tankless water heaters do not work when the electricity supply is interrupted due to storms or power supply issues.

On the other hand, propane tankless heaters do not have any connection with the electric supply and can provide hot water even if the grid is down.

What is a Propane Tankless Water Heater?

Propane Tankless Water Heater 1

A propane Tankless water heater heats water using gas that must be pumped, separated, and distilled. Also known as liquified petroleum gas, propane gas is compressed and stored as a liquid.

Propane gas heats water the same way as natural gas but is heavier than natural gas. In areas where natural gas is not available, people use propane gas to heat water.

Strengths of Propane Tankless Water Heater:

Propane tankless water heaters perform best in big households and commercial buildings with huge demand.

Although they are not as efficient as electric water heaters but are perfect for areas where electricity is relatively expensive.

1.   Higher Capacity and Flow Rates:

Propane is a winning solution for buildings or households that don’t have access to natural gas. Propane gas has higher flow rates than electric heaters.

They can easily meet the demands of commercial places, including salons, restaurants, hotels, hospitals, multi-family residences, etc. A propane tankless water heater can deliver nearly 20 GPM hot water, even in winter.

Moreover, a propane tankless water heater ensures a consistent heat level, while an electric heater does not.

2.   Cost-Effective and Efficient:

Gas is slightly cheaper in many regions than electricity per BTU output power. But, gas prices tend to fluctuate in the near future.

If you are from a region where propane is cheaper than electricity, then a propane tankless water heater would be a cost-effective appliance for you.

The efficiency rating of propane tankless water heater reaches up to 98%, making it enough energy efficient.

Weaknesses of Propane Tankless Water Heater:

There’s no doubt that Propane Tankless water heaters are exceptional in terms of their capacity to deliver hot water, but they have some cons compared to electric tankless water heaters. Let’s see what they are;

1.   Higher Installation Cost:

Propane tankless water heaters are more costly than electric tankless water heaters, and their installation cost is also higher.

An electric heater can be installed easily without much effort and money. However, gas heating systems need proper ventilation, which is expensive and tiresome.

To install a propane heating system at your home, you must modify your house’s overall venting ducts and gas lines. Getting an electric tankless water heater saves you all this money and inconvenience.

2.   Environmental Impact:

Propane tankless water heaters release greenhouse gases into the atmosphere due to reliance on fossil fuels.

Although it has 33% fewer carbon emissions than heating oil storage tank systems, we cannot deny that this gas pollutes the environment greatly.

Electric Tankless Water Heater is a more environment-friendly option.

3.   Requires Annual Maintainance:

Unlike electric heating systems, gas (propane or natural) tankless water heaters requires annual maintenance by a professional or a licensed technician, making them expensive in the longer run.

Due to fuel combustion, it is mandatory for a propane tankless water heater to be monitored annually. This type includes explosive gas, so our house would be at risk without proper maintenance.

4.   Risks of Explosion:

Gas tankless water heaters can lead to a catastrophic explosion whenever there’s a gas leak in a valve or piping.

An electric water heater has no chance of explosion as it is sourced through electricity. A water heater explosion can cause severe damage, including physical injury or death.

On the other hand, an electric tankless water heater is a safer option.

Comparison Table

FeaturesElectric Tankless Water HeaterPropane Tankless Water Heater
Price$500-$1000$1000-1200
Installation CostMuch Cheaper to Install, Does not need high modificationExpensive, requires venting
MaintainanceCan be easily doneRequires annual maintenance from a licensed technician
Environmental ImpactLowerHigher
FlowratesUp to 8 GPMFrom 8 to 20 GPM
Operation CostVaries according to electricity charges in different regionsLower, projected to rise in future
Warranty20+ years20+ years

Final Verdict:

Both Electric and Propane Tankless Water heaters perform well. For many people, the availability of power sources dominates their decision of choosing one.

While for others, factors like operating cost, maintenance, flow rates, and cost-effectiveness stand between their choice.

There’s no winner in both tankless heaters, considering the disparity between user needs and preferences. On a lighter note, electric tankless water heaters outweigh propane heaters due to their affordability, convenience, and comfort.

Water heating systems are a huge investment and can’t be bought or installed frequently. Choose the one that suits your household and other circumstances.

Frequently Asked Questions

Is it better to get an Electric Tankless water heater or Propane?

Electric Tankless Water Heaters are a better option as they are more affordable, energy-efficient, environmental friendly and require no annual maintenance as well.

Propane water heaters have higher flow rates which makes it the best for commercial use and big households.

What are the downsides of a Propane Tankless Water Heater?

Propane water heaters cost somewhere between $1000-$1200 and have additional maintainance as well as installation charges as well.

You need to do proper venting in your house to get a propane tankless water heater installed. Apart from releasing harmful gases in the atmosphere, they also have a high risk of a gas explosion.

Are Electric Tankless Water Heaters Worth It?

Electric Tankless Water Heaters are a great investment as they have higher energy efficiency and lower upfront cost.

Moreover, in the long run, Electric Tankless Water Heaters are convenient, affordable, and well-performing appliances.

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