Electric Hot Water

Electric Hot Water
Will it be more cost effective to keep gas hot water heater or change to electric hot water heater?

Will it be more cost effective to keep gas hot water heater or change to electric hot water heater? Basically, we are buying a house and in debate with the seller about wether to have them repair the GAS hot water heater or just change it over to ELECTRICE hot water heater. Will this rate cap effect the gas too or is it better and cheaper to keep the GAS HOT WATER HEATER instead of changing to electric hot water?? Please HELP !!!

You did not say which gas you have available:

Natural gas (NG) is about half the running cost of an electric water heater. Propane is only slightly less than an electric. (generally speaking - all being traditional storage water heaters).

If the water heater is more than 10 years old, I'd push for having it replaced - in part so you can take advantage of the new energy tax credit.

It's best if the seller replaces it and you negotiate how to share the expense. Make the seller aware that there are federal tax credits available for energy efficient water heaters - including installation cost. There may also be incentives from your local government and utility companies. If the seller reduces his cost, there will be less to share and you both win.

Look for ENERGY STAR qualified products for lower operating cost.

To replace with another gas unit, I'd look into the new condensing technologies, either tankless (same as on-demand or instantaneous) or conventional storage. They are extraordinarily energy efficient.

The only electric water heater that will save you money in operating cost over an NG water heater is a heat pump water heater. They are not for everyone, and they are just starting to come on the market for residential use. Note that any gas water heater (storage or tankless) is more cost effective than electric storage or tankless.

The notion that all tankless are more efficient than any storage water heater is a myth. For instance, condensing gas storage water heaters are more efficient than many tankless water heaters. An electric tankless water heater is only 10-15% more energy efficient than an electric storage water heater. The difference is quickly spent in installation cost. An (electric) heat pump water heater is more efficient than many tankless gas water heaters.

If you are concerned about your carbon footprint do not go with electric. It is estimated that the CO2 emissions from generating the power for the electric unit is at least double that from a conventional gas water heater. The exception is the heat pump water heater - it only uses the power to cycle a fluid, not for the actual heating. Your best option for low CO2 is solar - no surprise.