In Canada’s cold climate, having reliable hot water isn’t a luxury—it’s a necessity. If you’re considering upgrading to a tankless system, you’ve probably asked yourself: Gas vs. Electric tankless water heater: which is better for your home? The answer depends on several key factors—efficiency, cost, space, and water usage.
In this detailed guide, we’ll help you weigh your options and choose the best energy-efficient water heater for your specific needs. Whether you live in a condo or a large detached home, understanding the differences between gas and electric tankless units is essential.
Why Choosing the Right Tankless Water Heater Matters
Tankless water heaters, also known as on-demand water heaters, heat water only when needed. Unlike traditional tanks that store and constantly reheat water, tankless models deliver a continuous stream of hot water, making them more efficient.
But when comparing gas vs. electric tankless water heaters, there’s no one-size-fits-all answer. Each option has its pros and cons, depending on your household size, budget, existing infrastructure, and energy availability.
GM Heating and Cooling Inc. has helped hundreds of Canadian homeowners find the right heating solutions, and we’re here to break it all down for you.
Gas Tankless Water Heaters
Pros:
- High flow rates: Ideal for large homes and multiple bathrooms.
- Lower operational cost: Especially where natural gas is affordable.
- Consistent performance: Performs well even in freezing Canadian winters.
- Longevity: Gas units tend to last longer, typically 20+ years.
Cons:
- Higher installation costs: Requires proper venting and sometimes a gas line extension.
- Complex installation: More labor-intensive than electric systems.
- Regular maintenance: Needs periodic inspection to ensure efficiency and safety.
Gas models are typically more powerful, making them suitable for homes that need to run several hot water appliances simultaneously—think two showers, a dishwasher, and a laundry load at the same time.
Electric Tankless Water Heaters
Pros:
- Lower installation cost: No venting or gas piping required.
- Compact design: Great for condos or smaller utility spaces.
- 100% efficiency rating: Converts all consumed energy into hot water.
- Minimal maintenance: Easier to service and fewer parts to maintain.
Cons:
- Limited flow rate: May not meet the needs of larger households.
- Higher operational cost: Electricity tends to cost more than gas in many parts of Canada.
- Electrical upgrades: Older homes may need a panel upgrade to support high-amperage units.
Electric tankless heaters are excellent for smaller homes or places with moderate hot water needs. If you’re aiming for a low-cost, energy-efficient water heater with a quick install, electric might be the better choice.
Efficiency Comparison
Electric units boast near-perfect efficiency on paper, with almost 100% of electrical input converted to heat. Gas units, while less efficient (typically 80%–95%), are often better at maintaining high output in real-world applications—especially in colder climates.
| Type | Efficiency | Notes |
|---|---|---|
| Electric | ~99% | Best for small households and mild climates |
| Gas | 80%–95% | Ideal for larger homes or high usage |
Energy efficiency also depends on the energy source cost in your area. Natural gas is often more economical per BTU in Canada compared to electricity.
Installation Costs
Gas Tankless Installation:
Installing a gas unit typically requires:
- Venting system for exhaust gases
- Gas line extension or upgrade
- Professional plumbing and HVAC services
The average installation cost in Canada ranges from $2,000 to $4,500, including materials and labor.
Electric Tankless Installation:
Electric units are easier to install, needing only:
- Proper electrical connection
- Minimal plumbing adjustments
However, older homes may require an upgraded electrical panel (200A or more), which can add $500–$1,000. On average, expect to pay $1,000 to $2,000 for a full installation.
GM Heating and Cooling Inc. offers free estimates for both gas and electric tankless water heater installations to help you plan your budget effectively.
Long-Term Savings
While gas systems are more expensive to install, they tend to be cheaper to operate over time due to lower gas prices in many parts of Canada. Electric units save money upfront, but higher electricity rates can lead to larger monthly bills.
| Factor | Gas | Electric |
|---|---|---|
| Unit Lifespan | 20+ years | 10–15 years |
| Monthly Utility Cost | Lower | Higher |
| Maintenance | Higher | Lower |
| ROI | Better in large households | Better in low-use scenarios |
Incentives and rebates can also play a role. Canada’s Greener Homes Grant and provincial programs may offer rebates for installing energy-efficient appliances like tankless systems. Be sure to check eligibility before making your decision.
Performance Comparison
Gas Units:
- Deliver higher gallons-per-minute (GPM) flow
- Capable of supporting multiple appliances at once
- Ideal for homes with high water demand
Electric Units:
- Lower GPM rating
- May struggle with simultaneous use in large homes
- Perfect for single-bath condos or cottages
If your family takes back-to-back showers or you frequently use hot water in multiple rooms, a gas model is better suited to handle the load.
Making the Right Choice for Your Home
The debate between gas and electric tankless water heaters boils down to your specific needs:
| Scenario | Best Choice |
|---|---|
| Large household | Gas |
| Small condo | Electric |
| High energy usage | Gas |
| Budget-conscious install | Electric |
| No gas line available | Electric |
| Long-term savings | Gas (with low gas rates) |
GM Heating and Cooling Inc. recommends evaluating your current energy usage, utility rates, and available infrastructure before choosing a model. And remember, an expert consultation can help you avoid costly mistakes.
Let GM Heating and Cooling Inc. Help You Choose the Right System
Still unsure which system is right for your home? Let the pros at GM Heating and Cooling Inc. guide you.
We offer personalized assessments, transparent pricing, and expert installation across Canada. Whether you’re upgrading an old system or building a new home, our licensed technicians can recommend the best on-demand water heating solution for your space and lifestyle.
Contact us today for a free quote or diagnosis.
Final Thoughts
Choosing between gas and electric tankless water heaters is more than just picking a product—it’s about selecting what works best for your home, your budget, and your energy usage.
If you’re still wondering which tankless water heater is right for your home, the team at GM Heating and Cooling Inc. is just one call away.
Frequently Asked Questions
Q: What is the lifespan of a tankless water heater?
A: Gas models typically last over 20 years, while electric ones range between 10–15 years, depending on maintenance.
Q: Are tankless systems energy-efficient?
A: Yes! Both types are more efficient than traditional tank heaters. Electric systems reach up to 99% efficiency.
Q: Can I install a tankless water heater myself?
A: DIY installation is not recommended. For safety and efficiency, always hire certified professionals like GM Heating and Cooling Inc.
Q: Are rebates available in Canada?
A: Yes! Check with Natural Resources Canada and your local energy provider for potential rebates on high-efficiency models.
