When it’s time to upgrade your home’s hot water system, one of the most common questions homeowners ask is: Are tankless water heaters gas or electric? The answer is that they can be either. Both gas and electric models are widely available in Texas, and each comes with its own advantages, challenges, and installation considerations.
At Proverbs Plumbing, we work with families across Georgetown and Central Texas who want to know which option is right for their home. This guide will help you understand the differences between gas and electric tankless water heaters, their performance in Texas households, and what to consider before making the switch.
How Tankless Water Heaters Work
Unlike traditional water heaters that store and continually heat a large tank of water, tankless water heaters—also known as “on-demand” systems—heat water only when needed. When you turn on a faucet or shower, cold water flows through the unit where either a gas burner or an electric heating element quickly raises the temperature.
This design offers endless hot water and greater energy efficiency, which is why so many Texans are replacing old tank systems with tankless models. However, choosing between gas and electric versions is a crucial decision.
Gas Tankless Water Heaters
Gas tankless water heaters use natural gas or propane to heat water. In Texas, natural gas is widely available in many neighborhoods, while propane is more commonly found in rural areas.
Advantages of Gas Tankless Systems
- Higher flow rates: Gas models can heat water more quickly, making them ideal for larger households with multiple bathrooms.
- Energy efficiency: Modern gas tankless units are highly efficient, often rated 80–95% efficient depending on the model.
- Lower operational costs in some areas: Where natural gas prices are low, monthly energy bills may be cheaper than running an electric model.
Things to Consider
- Installation cost: Gas units are more expensive to install, often requiring venting, new gas lines, or the installation of propane tanks.
- Maintenance: Gas systems need annual servicing to keep burners clean and ensure safe venting.
- Safety: Proper installation is critical to prevent gas leaks or carbon monoxide issues.
Electric Tankless Water Heaters
Electric tankless water heaters rely on powerful heating elements connected to your home’s electrical panel. They’re becoming more popular in Texas as homeowners upgrade wiring and seek eco-friendly alternatives.
Advantages of Electric Tankless Systems
- Lower upfront cost: Electric models are typically less expensive to purchase and install compared to gas units.
- Smaller size: They’re compact and can be installed in tighter spaces, such as under sinks or inside closets.
- No venting required: Unlike gas units, electric models don’t need exhaust pipes or gas lines.
- Eco-friendly option: They produce no on-site emissions, and if your home uses solar power, they can be a sustainable choice.
Things to Consider
- Electrical upgrades may be needed: Many Texas homes require panel upgrades to support the high amperage these units draw.
- Flow rate limitations: Electric models may struggle to supply multiple fixtures at once in larger households.
- Energy costs: Electricity rates in Texas can vary, and depending on usage, operating costs may be higher than those of natural gas in some regions.
Which Option Is Better for Texas Homes?
When considering whether tankless water heaters are gas or electric, the real question is: which type is better for your specific home? The answer depends on a few key factors:
1. Household Size
- Larger families with high hot water demands (such as showers, laundry, and a dishwasher running simultaneously) often benefit from a gas tankless water heater.
- Smaller households or couples may find electric models perfectly adequate.
2. Fuel Availability
- If your home already has a natural gas line, gas may be the more cost-effective choice.
- If you live in a rural area without access to gas, propane, or electricity, it may be a better option.
3. Budget
- Electric units typically have lower installation costs.
- Gas units cost more upfront but may save on long-term operating costs.
4. Home Infrastructure
- Homes with outdated electrical panels may face significant upgrade costs for electric tankless systems.
- Homes without gas lines may require expensive plumbing modifications to accommodate gas.
5. Sustainability Goals
- Electric models pair well with solar energy systems.
- Gas models are efficient but still rely on fossil fuels.
Costs: Installation and Operation in Texas
The cost difference between gas and electric tankless water heaters can be significant:
- Electric tankless water heater installation typically costs $1,000–$2,500 in most cases.
- Gas tankless water heater installation: $2,500–$4,500+, depending on the complexity of venting and gas line work.
Operational costs vary depending on energy rates. On average:
- Electric models: May incur higher monthly costs in areas with high electricity rates.
- Gas models: Often cheaper in regions with low natural gas prices, but propane can be more expensive.
At Proverbs Plumbing, we help homeowners compare both upfront and long-term costs to make informed decisions.
Maintenance Needs
Both types of tankless water heaters require regular maintenance, but the specifics differ:
- Gas models: Need annual inspections for burners, venting, and gas connections.
- Electric models: Require descaling or flushing if your home has hard water (a common issue in Central Texas).
Regardless of type, annual maintenance extends the life of your system and ensures reliable hot water.
Energy Efficiency and Environmental Impact
In Texas, where summers are long and energy bills can spike, efficiency matters:
- Gas tankless heaters are usually more powerful but less efficient in standby mode.
- Electric tankless heaters have nearly 100% efficiency, meaning that nearly all the energy is converted directly into heating water.
Environmentally, electric heaters produce no on-site emissions. If your electricity comes from renewable sources (like solar), your environmental footprint is much smaller.
Common Questions Texans Ask
Are tankless water heaters gas or electric?
They can be either. The right choice depends on your home setup, budget, and hot water needs.
Do tankless water heaters continue to function during a power outage?
Gas tankless heaters may still require electricity for ignition, so most units won’t work without power unless connected to a backup generator.
Which lasts longer, gas or electric?
Both last 15–20 years with proper maintenance, though electric models often have fewer mechanical parts to service.
Can a tankless water heater supply hot water to the entire house?
Yes. Gas models typically handle whole-home demand more effectively, while electric models are better suited for smaller homes or point-of-use applications.
What’s best for Central Texas water conditions?
Hard water is common here, so it is highly recommended to pair whichever model you choose with a water softener or filtration system.
Proverbs Plumbing: Helping Texas Families Choose the Right Water Heater
At Proverbs Plumbing, we know the decision isn’t just about asking if our tankless water heaters are gas or electric—it’s about finding the system that will deliver reliable comfort, efficiency, and long-term savings for your home. Our team has helped countless homeowners in Georgetown and Central Texas install, maintain, and repair both gas and electric tankless water heaters.
We’ll assess your home’s energy setup, water usage, and budget to recommend the best solution for you. Whether you prefer the power of a gas system or the simplicity of electricity, we’ll ensure your installation is done correctly.