A Comparison of Propane and Electric as an Energy Source for Tankless Water Heaters

There is little doubt that natural gas is the most economic source of energy when it comes to having a hot shower. However, there are millions of homes in USA with no access to this profitable fuel and finding the most suitable alternative is a difficult albeit necessary task. This article sets out to review the use of electric and propane in tankless water heaters and tries to provide answers as to which one is likely to give better results.

Nine out of ten people would say that the primary consideration when choosing the type of fuel for a water heater is the cost. In the past, comparing the cost of propane and electric was straightforward. Fossil fuels traditionally have been cheaper than electric and propane was no exception until recent years. Yet, with the availability of cheap natural gas in ample amounts and its use in thermal power stations to produce electric, the cost of kilowatt hours supplied to our homes has fallen. Currently, propane is only slightly cheaper than electric and reportedly, in some states, it can cost higher than electric from time to time. In other words, the price advantage of propane has greatly diminished although it is still a factor.

When it comes to installing, electric tankless heaters can be an issue if you do not have the needed amperage in your home. These devices require at least a 200 amp service with special dedicated breakers so your electric panel can need some work. Installing a propane tankless water heater is no cakewalk either. Unlike the atmospheric-vent water heaters of the past decades, today’s tankless units often require a power vented exhaust system built with special material. That means you need to forget about using the chimney vent left over from the old hot water tank. In addition, you have to hire or buy a propane tank and arrange with a supplier to fill it if you are not already using it in your home. In short, installation of both types of tankless water heaters can turn out to be somewhat problematic in their own ways and it is hard to call one type easier to install than the other.

As for the comfort, it is possible to claim that electric tankless water heaters are the winner. They are very compact and can be fitted in small places. They also need to venting so you basically have a carte blanche to put it anywhere you want as long as it is not exposed to freezing outside temperatures. Electric units can be installed is strategic locations in home so as to minimize the wait for the hot water at the outlets. What makes it even better is the availability of tankless electric water heaters in very small sizes. That gives you even more liberty in installing dedicated units for each shower or faucet and end the hot water delay issues once and for all.