Gas vs. Electric Water Heater: Which Is Better for Your Home in 2025?

Choosing between a gas vs electric water heater is one of the most important decisions a homeowner can make in 2025. The type of water heater you choose affects energy usage, monthly bills, efficiency, and overall comfort. As licensed plumbers in California, we work with both systems daily and understand how each performs in real-world conditions.

This 2025 homeowner guide breaks down how gas and electric water heaters compare, including costs, efficiency, performance, and lifespan, so you can make the best choice for your home.

Note on Building Codes (2025 Update):

As of January 1, 2026, California’s updated 2025 Energy Code will require most newly constructed homes to use electric heat pump systems for both space and water heating. This code change means that traditional gas water heaters will increasingly be replaced with efficient heat-pump water heaters in new homes under building permits issued in 2026 and beyond. For homeowners, this highlights a clear trend toward electric systems influencing long-term maintenance, utility costs, and resale value. Read more from Energy California. So if you want to buy a gas water heater you should do so now before 2026.

What Is the Difference Between Gas and Electric Water Heaters?

The main difference is the fuel source used to heat water.

• Gas water heaters use natural gas or propane.
• Electric water heaters use electric heating elements.

Both systems provide reliable hot water, but their performance, cost, and maintenance requirements differ significantly.

Gas Water Heaters: Pros, Cons, and When to Choose One

Gas water heaters remain the most common choice for California homes that already have an accessible gas line.

Advantages of Gas Water Heaters

1. Faster Heating and Recovery Time

Gas burners heat water significantly faster than electric heating elements. This makes gas systems ideal for households where multiple showers or appliances run at the same time.

2. Lower Monthly Operating Costs

In many parts of California, natural gas is more affordable than electricity. As a result, gas units typically cost less to operate month-to-month.

3. Operation During Power Outages

Traditional gas water heaters can continue heating water even if the power goes out, depending on the model.

Disadvantages of Gas Water Heaters

1. Higher Installation Cost

Gas systems require gas lines, venting, and combustion safety measures, which increases installation costs.

2. Homes Must Have Proper Venting

Not all homes are equipped with proper venting for combustion. Retrofitting a home for venting can increase installation costs.

3. Slightly Shorter Lifespan

Because gas units rely on combustion, they typically last eight to twelve years.

Best For Homes That:

• Already have a gas line
• Use large amounts of hot water
• Prefer faster water heating and recovery time
• Want lower long-term energy costs

Electric Water Heaters: Pros, Cons, and When They Make More Sense

Electric water heaters are known for reliability, simplicity, and safe operation. They are especially common in smaller homes or areas without natural gas.

Advantages of Electric Water Heaters

1. Lower Installation Cost

Electric units do not require gas lines or venting, reducing installation time and cost.

2. Safer Operation

There is no combustion, no gas leaks, and no carbon monoxide risk. Electric water heaters generally require less safety maintenance.

3. Longer Lifespan

Electric heaters often last ten to fifteen years, and some last even longer with proper maintenance.

Disadvantages of Electric Water Heaters

1. Higher Operating Costs in California

Electricity rates continue to rise statewide, making electric systems more expensive to operate over time.

2. Slower Heating

Electric heating elements take longer to heat water and recover after heavy use.

3. Do Not Operate During Power Outages

Electric units require a functioning electrical system to heat water.

Best For Homes That:

• Do not have an existing gas line
• Want the lowest upfront installation cost
• Prefer a simple and low-maintenance option
• Have moderate hot water usage

Cost Comparison: Gas vs. Electric Water Heaters in 2025

Category	Gas Water Heater	Electric Water Heater
Upfront Cost	$1,600–$3,000 installed	$1,200–$2,200 installed
Monthly Operating Cost	Lower (gas is cheaper)	Higher (electricity is more expensive)
Lifespan	8–12 years	10–15 years
Recovery Time	Fast	Slow
Maintenance	More complex due to combustion	Simpler and safer

According to the U.S. Department of Energy, water heating accounts for about 18 percent of household energy use, making the choice between a gas vs electric water heater an important one. Read more from https://www.energy.gov/energysaver/water-heating

Tankless Water Heater Alternative

Tankless water heaters, available in both gas and electric versions, heat water on demand. They offer benefits such as:

• Endless hot water supply
• Longer lifespan (up to 20 years)
• Reduced energy use
• Compact, wall-mounted design

Tankless systems cost more upfront but can significantly reduce long-term energy consumption.

Our Professional Recommendation for California Homes

Based on thousands of installations and repairs across the Bay Area:

Choose a Gas Water Heater If:

• You have a large family
• You prefer faster hot water recovery
• Your home already has a gas line
• You want lower monthly operating costs

Choose an Electric Water Heater If:

• You want a more affordable installation
• You live in an apartment or condo
• You prefer a safer, maintenance-friendly system
• Your household uses a moderate amount of hot water

If your current water heater is over ten years old, leaking, or producing inconsistent temperatures, replacing it now can help you prevent unexpected failures and water damage.

Need Help Choosing the Right Water Heater?

United Plumbing provides:

• Water heater installation
• Water heater repair
• Tankless system upgrades
• Same-day replacement
• Emergency service

Our licensed technicians can help you select the best water heater for your home, budget, and daily usage needs.

Call us today or schedule online.

Post views: 3