Gas vs electric water heater: which is better for your home?
If you're replacing a water heater, the fuel choice affects what you pay up front, what you pay every month, how fast the tank recovers and what happens in a power outage. Here are the differences manufacturers point to, running-cost estimates built from federal energy prices for the states we serve, and what the federal efficiency rules taking effect in 2029 mean.
Updated October 29, 2026 · 8 min read · By the Heater Doctor team
Short answer
Neither wins everywhere. A. O. Smith says gas heaters recover faster and keep working in a power outage, but cost more to install because they need a gas line and venting. Electric heaters cost less to buy and install and don't burn fuel, but recover more slowly. On running cost, our estimates from U.S. Energy Information Administration prices show a standard gas tank costing roughly $140 to $460 a year across the states we serve, against about $450 to $1,040 for a standard electric tank, while an ENERGY STAR heat pump electric model comes in lowest at about $130 to $300.
Side by side
| Gas tank | Electric tank (standard) | |
|---|---|---|
| How it heats | Burner under the tank | Two resistance elements inside the tank |
| Upfront and install cost | Higher: needs a gas line, venting and inspection | Lower: needs a suitable electric circuit |
| Recovery (40–50 gal) | About 30–40 minutes | About 60–90 minutes |
| Power outage | Standard models keep heating | No hot water |
| Combustion safety | Needs venting; carbon monoxide risk | No gas leaks or carbon monoxide |
| Maintenance | Burner, pilot, venting checks | Fewer checks; elements and thermostats can fail |
| Federal minimum efficiency, 40 gal tank* | UEF about 0.58 | UEF about 0.92 |
Sources: A. O. Smith's gas vs electric guide and recovery figures; 10 CFR 430.32. *Medium draw pattern, current standard for heaters made before May 6, 2029.
Speed: gas recovers about twice as fast
A. O. Smith says a typical 40 to 50 gallon gas tank fully recovers in about 30 to 40 minutes, while the same size electric tank takes about 60 to 90. Its sizing guide shows why: at a 90°F temperature rise, a 40,000 Btu gas burner reheats about 40 gallons an hour, while a 4,500 watt electric element manages about 20.5. A. O. Smith says that makes gas a good fit for bigger families or homes that use more hot water (see how long a water heater takes to heat up and what size water heater do I need).
Efficiency isn't the same as cost
Water heaters are rated by uniform energy factor (UEF): how much of the energy going in ends up as hot water. A. O. Smith notes that standard electric heaters convert nearly all their electricity to heat, while gas models lose some up the vent, so electric rates higher. Federal rules (10 CFR 430.32) put the minimum for a typical 40 gallon tank at about 0.92 for electric and 0.58 for gas.
But energy from electricity costs more: at EIA's U.S. average prices, a million Btu costs about $53 as electricity and about $15 as natural gas. So the lower-efficiency gas heater often costs less to run. A. O. Smith makes the same point: where electricity costs more than gas, higher efficiency may not mean lower bills. Heat pump water heaters change the math: they move heat from the air instead of making it, and ENERGY STAR requires a UEF of at least 3.30 for standard integrated models.
Estimated running costs in our states
We estimated a year of water heating for a household using 20,075 gallons of hot water, the amount in the federal test that the Department of Energy's FEMP program uses, priced with EIA's latest state averages. A standard electric tank (UEF 0.95) uses about 3,437 kWh for that, an ENERGY STAR heat pump (UEF 3.3) about 984 kWh, and a gas tank at the 40 gallon federal minimum (UEF 0.58) about 192 therms.
| State | Gas tank | Standard electric | Heat pump electric |
|---|---|---|---|
| Colorado | $207 | $577 | $165 |
| Connecticut | $312* | $944 | $270 |
| Idaho | $142 | $447 | $128 |
| Illinois | $208 | $661 | $189 |
| Maryland | $299* | $732 | $210 |
| Massachusetts | $464 | $1,038 | $297 |
| Minnesota | $203 | $565 | $162 |
| Ohio | $257 | $646 | $185 |
| Pennsylvania | $279 | $726 | $208 |
| Utah | $189 | $453 | $130 |
| U.S. average | $284 | $625 | $179 |
Our estimates. Electricity: EIA average residential price, January to August 2026. Gas: EIA average residential price for 2025 (*2024 for Connecticut and Maryland, where 2025 isn't published), converted at 10.37 therms per thousand cubic feet. Your bill depends on your rates and how much hot water you use. The full method is in how much it costs to run a water heater.
Power outages
A. O. Smith says gas water heaters keep heating when the power goes out, which makes them a good fit where long outages are common. That applies to standard gas models: a gas heater that needs electricity, like a power-vent model or one with electronic ignition, won't run until the power is back. Electric heaters stop entirely (see water heater not working after a power outage).
Safety
Because electric heaters don't burn fuel, A. O. Smith says gas leaks and carbon monoxide aren't issues with them. A gas heater needs a properly working vent, and A. O. Smith recommends a fuel gas and carbon monoxide detector in homes with gas heaters. If you choose gas, see water heaters and carbon monoxide and venting and backdrafting.
Switching fuels
A. O. Smith's advice is that existing infrastructure often decides it: a home with a gas line usually finds gas more convenient, and an all-electric home has a simpler electric option. Going from electric to gas means adding a gas line and venting, which it says can mean large installation costs. Going from gas to electric is usually cheaper up front, but the heater's data plate sets the voltage, wire size and breaker it needs, and A. O. Smith notes your electric bill will go up because the load moves to electricity. Either change may need a permit (see do you need a permit to replace a water heater).
Are gas water heaters being phased out?
Not by federal efficiency rules. Under 10 CFR 430.32, new standards apply to water heaters made on or after May 6, 2029; A. O. Smith says all manufacturers must meet them by then. For most electric tanks of about 35 to 55 gallons, the minimum UEF jumps to 2.30, a level only heat pump models reach. For gas tanks of 20 to 55 gallons, the minimum rises more modestly, to roughly 0.64 for a 40 gallon medium-draw tank. Heaters already installed aren't affected. If you're weighing a heat pump, see heat pump water heater pros and cons.
Which one is in your home now?
A. O. Smith says gas heaters usually have a vent pipe on top, a gas line connection and a pilot or burner. Electric heaters have an electric cable or conduit running into the top and access panels on the side for the elements. Census estimates on our town pages show about 92% of homes in Plain City, Ohio heat with gas, while about 65% in Harrison, Ohio heat with electricity.
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Common questions
What is better, a gas or electric water heater?
It depends on your home. A. O. Smith says gas recovers faster and works in outages but costs more to install; electric costs less up front and doesn't burn fuel. Where gas is available, a gas tank usually costs less to run than a standard electric tank.
Is it cheaper to heat water with gas or electric?
Usually gas, compared with a standard electric tank. In our estimates from EIA prices, a gas tank costs about $284 a year at U.S. average prices against about $625 for standard electric. A heat pump electric model, at about $179, costs less than either.
Are gas water heaters being phased out?
Not under federal efficiency rules. The standards that start May 6, 2029 require heat pump level efficiency for most electric tanks of about 35 to 55 gallons, but only a modest increase for gas tanks.
Does a gas water heater work without electricity?
Standard gas models do, according to A. O. Smith. Power-vent models and heaters with electronic ignition or controls need electricity.
How can I tell if my water heater is gas or electric?
A gas heater has a vent pipe on top and a gas line to a control valve near the bottom. An electric heater has a cable running into the top and side access panels.
Sources
- A. O. Smith, Choosing a New Appliance: Electric vs. Gas Water Heaters
- A. O. Smith, How Long Does It Take a Water Heater to Heat Up?
- A. O. Smith, Residential Water Heater Sizing Guide (recovery tables, AOSSG88150)
- 10 CFR 430.32(d), Energy conservation standards: water heaters (Cornell LII)
- A. O. Smith, DOE Regulations
- U.S. DOE FEMP, Purchasing Energy-Efficient Residential Water Heaters
- ENERGY STAR, Residential Water Heaters Key Product Criteria
- U.S. EIA, Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date through August 2026
- U.S. EIA, Natural Gas Prices: Residential price by state (annual)
- U.S. EIA, How do I convert natural gas prices to dollars per therm?
- A. O. Smith, Residential Standard Gas Water Heater Use and Care Guide (100277333, Oct. 2016)
General information only. Gas, electrical and pressure work can be dangerous; when in doubt, call a licensed professional.
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