A Comparison of the two. . . 

Gas or electric tankless water heaters...better than an old tank heater, but which one will you choose? Your decision to select a gas or an electric tankless heater has to meet your needs.  Electric tankless water heaters cost on the average about $200 to $500.  Where as gas tankless heaters cost considerably more. . .a lot more. 

Because of their size, an electric model can be installed in places that many gas tankless models simply cannot go.  Most homes and businesses already have the electrical service for the hookup of electronic tankless water heaters.  This makes installation of an your American Heat electronic tankless heater less costly than the installation of a gas tankless water heater.  Gas tankless heaters and the old style tank heater both have venting and combustion air supply requirements.  Installation can become very expensive, especially if trying to get one installed in a small, confined area.  Of course, a gas tankless water heater uses gas to heat water. 

The efficiency for gas tankless heaters range up to around 80 to 87%. This is a nice way of saying that the gas tankless heater has an immediate heat loss of 13 to 20% on the average.  That immediately changes the picture of gas tankless heating.  Through the latter part of the Spring into the Summer of 2008, the fuels for these heaters went up 40% in three months.  Gas is un-regulated.  Where will the price go?  Up or Down?  The electric tankless heaters are a real rival because their efficiency ranges up to nearly 98 to 99% and higher.  This high efficiency is due the direct contact of the heating element with the water.  Gas tankless units heat the water indirectly through metal, with a flame.  Note that natural gas even before the big increase, if obtainable at all in your location, has usually been less expensive as an input fuel than electricity per unit of energy output.  This benefit may be have become offset by the higher energy efficiency of an electronic tankless heater, service life and the cost of installation.  With the cost of a gas tankless heater, even with the payout by the government for these units, you will need considerably more money just to obtain, install and operate a less energy efficient gas tankless system.  Even if you were to save $30 to $40 per year using a gas tankless heater, it may take the life of the heater, which maybe as long as 20 years or more, just to break even.  Gas prices are not as controlled as the tighter controls found on electricity costs.  You are definitely not alone if you think natural and propane gas costs might rise over the coming years.

Operating costs are an important consideration for anyone's purchase decision.  If you do save, then remember, it may take you more than the life of the gas tankless water heater just to break even.  There are many areas where gas costs are really high because of the lack of supply.  Consider an old law in economics:  Less supply means higher demand and as a result, higher prices.  Electronic tankless water heaters are simply more energy efficient through the incoloy element's direct contact with water in the process of heating that water.  And, the overall costs difference between fuel types may be overcome through that electric tankless efficiency. If you remember one thing then consider this:  It may take you the life of the gas tankless heater to break even...Take into consideration the lower installation and operating costs of an energy efficient electronic tankless heater such as the American Heat Tankless Heater. 

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