Gas vs. Electric Water Heater: The True Cost to Run Each
Quick Answers
Is gas always cheaper to run?
In most states, yes, compared to a standard electric resistance tank — but local gas and electricity prices both vary enough that it's worth checking your own rates.
What's a heat pump water heater?
A water heater that uses the same heat-pump technology as home heating systems, moving rather than generating heat, making it 3-5x more efficient than a standard electric tank.
Does switching water heater types affect my CCM Energy Score?
Water heater type isn't a direct input today, but it factors into your overall annual energy cost, which is the score's primary driver.
The baseline comparison
A standard electric resistance water heater converts electricity to heat at close to 100% efficiency but never better, while natural gas is typically priced low enough per unit of delivered heat to win on raw operating cost in most states.
Where heat pump water heaters change the math
Because a heat pump water heater moves 3-5x more heat than it consumes in electricity, it can beat even a gas unit's operating cost in many cases, despite running on electricity.
| Water heater type | Typical efficiency | Relative operating cost |
|---|---|---|
| Electric resistance | ~100% | Highest |
| Natural gas | ~60-70% | Moderate (fuel is cheap per unit) |
| Heat pump water heater | 300-500% | Lowest |
The rebate angle
Heat pump water heaters commonly qualify for the same federal tax credit and state HEEHRA rebate programs available to home heat pumps.
Want to see where you personally stand? Check your own CCM Energy Score, free and takes under a minute.