Gas vs. Electric Operating Costs in Portland: What Homeowners Should Know
A long, hot shower at the end of an exhausting day.
An automatic dishwasher that washes a week’s worth of dishes with virtually no hands-on time.
Most of us can’t imagine life without a hot water heater — but if you’re in the market to purchase a new unit or upgrade your existing one, you’ve probably noticed there are multiple options to choose from.
How do you choose a hot water heater that will meet your needs while also making the most financial sense long-term? All Pro Plumbing has the answers you need.
Here, we compare gas vs. electric water heater operating costs in Portland and answer our customers’ most commonly asked questions, to help you decide on the perfect unit for your home or business.
Table of Contents
- 4 Types of Water Heaters and How They Work
- 4 Factors That Help Determine Electric vs. Gas Water Heater Cost of Operation
- Gas vs. Electric Operating Costs in Portland: Frequently Asked Questions
- Gas, Electric, or Tankless — All Pro Plumbing Will Help You Find the Right Water Heater for Your Home or Business
4 Types of Water Heaters and How They Work
Let’s all take a minute to say a sincere and hearty, “thank you,” to late 19th century inventors, Benjamin Waddy Maughan and Edwin Ruud, designers of the first gas and electric water heaters.
While gas came first, the introduction of electric water heaters has offered some key advantages, including:
- Eliminating gas leaks and carbon monoxide
- Flexible installment locations
- Fewer maintenance requirements
- Longer lifespans
- Incentives for tax rebates
- Reduced environmental impact
Let’s break down each type of water heater to discover just how they work.
If you’re struggling to make the decision between gas versus electric water heater, the professional team at All Pro Plumbing can help outline the options for your unique situation, evaluate the pros and cons, and install your water heater hassle-free. Reach out today!
1. Gas Water Heaters
Gas water heaters work by burning natural gas or propane to heat up water stored in a tank. A burner at the bottom of the tank ignites the gas, heating the cold water. Water temperature is monitored by a thermostat that activates the burner as needed. The heated water rises to the top of the tank and enters your home’s hot water fixtures. Naturally occurring combustible gases are vented out of your home through a chimney-like flue.
Pros of gas water heaters include:
- Faster heating
- Higher capacity
- Lower operating costs
- Capability of working during power outages
- Performance in cold climates
Cons of gas water heaters include:
- Higher upfront cost
- Larger space and venting requirements
- Higher maintenance requirements
- Greater environmental impact, due to carbon emissions
- Safety concerns, due to the risk of gas leaks and carbon monoxide poisoning if the unit isn’t properly installed and maintained
2. Electric Water Heaters
With electric water heaters, electricity is converted into heat by way of two heating elements that are submerged in a water-filled tank. A dip tube delivers cold water to the bottom of the tank, where it is heated by the elements. The water then warms, rises, and exits the tank through a pipe at the top, delivering a constant supply of hot water. The temperature is controlled by a thermostat that activates the heating elements as needed to maintain the desired temperature.
Pros of electric heaters include:
- Lower upfront cost
- Easy installation
- Safer operation
- Environmentally friendly, when powered by renewable energy sources
- Quiet operation
Cons of electric heaters include:
- Higher operating costs
- Slower heating time
- Slower recovery rate
- Vulnerable to power outages
- Less efficient than some models
3. Gas Tankless Water Heaters
Unlike tank models, gas tankless water heaters heat water instantaneously, on demand. When you turn on a hot water faucet, a flow sensor activates a gas burner, heating the water as it passes through a heat exchanger. As soon as the water reaches the set temperature, it enters your faucet. When you turn off the faucet, the unit shuts off.
Pros of gas tankless water heaters include:
- Endless hot water
- Energy efficiency
- Longer life expectancy, with some lasting over 20 years longer than tank heaters
- Space-saving
- Better temperature control
Cons of gas tankless water heaters include:
- High initial cost
- Limited flow rate
- Infrastructure requirements, including larger gas lines and proper ventilation
- Inoperable during power outages
- Potential for scale buildup
- Added maintenance
4. Electric Tankless Water Heaters
Tankless electric water heaters use high-powered electric heating elements to heat water only when a hot water faucet is turned on. During operation, cold water flows through a heat exchanger within the unit. As the water passes the activated heating elements, it’s heated to the desired temperature and then flows to the faucet. Once the faucet is off, the unit shuts off, and doesn’t begin heating water until it’s needed again.
Pros of electric tankless water heaters include:
- Continuous hot water
- Energy efficiency
- Space-saving
- Longer lifespan than tank water heaters
- No venting required
Cons of electric tankless water heaters include:
- High upfront cost
- Limited flow rate
- High energy demand
- Potential for higher operating costs
- Longer time to deliver hot water
4 Factors That Help Determine Electric vs. Gas Water Heater Cost of Operation
While these aren’t the only considerations, these factors provide a strong framework for understanding overall expenses. The best way to accurately determine the cost of gas versus electric water heaters is a side-by-side comparison under the guidance of a professional plumber.
If you’re in the market for a new water heater and want to make an informed decision, contact the experts at All Pro Plumbing.
#1: Energy Prices
The greatest influence on operating costs of electric vs. gas water heaters is your local utility rates. In Oregon during 2024, while specific rates varied depending on the utility, natural gas was less expensive than electricity for residential heating.
Rates vary by location, so checking your local rates helps you estimate real-world savings.
#2: Efficiency
The Energy Factor (EF) measures your water heater’s overall energy efficiency. The calculation is made by comparing the amount of useful hot water produced to the total energy consumed throughout a typical day.
The higher the EF rating, the more efficient your water heater, which translates into reduced energy consumption and a significant savings on operating costs over the life of your unit.
Electric water heaters often have higher efficiency ratings, but the cost to run them still depends on local electricity prices. Gas water heaters, on the other hand, may lose some energy through venting even if the fuel itself is cheaper.
#3: Installation and Maintenance
Gas units typically cost more to install due to venting requirements and gas line hookups, and may also require more frequent maintenance.
Electric units are usually simpler and cheaper to install, with fewer ongoing maintenance needs.
Be sure to factor in these differences, along with energy costs, when making your decision.
#4: Hot Water Usage
Do you have a house full of teenagers, or are you a bachelor who lives alone? The number of people in your household and their hot water habits can tip the scale toward one system or the other when it comes to cost of operation.
Larger households that use considerable hot water may save more with gas systems because of their faster recovery rate.
In contrast, smaller households or those with lower hot water demands may benefit from the simplicity and efficiency of electric or tankless models.
Gas vs. Electric Operating Costs in Portland: Frequently Asked Questions
Is It Worth Switching From Electric to Gas Water Heater?
Switching systems isn’t only about energy prices.
Additional factors to consider include:
- Upfront conversion costs, such as running gas lines and venting
- Potential monthly savings if gas is cheaper than electricity in Portland
- The long-term value, including faster recovery and resale appeal
- Higher installation costs or fluctuating natural gas prices
Does a Tankless Water Heater Raise Your Electric Bill?
While tankless units are highly efficient and only use energy when hot water is needed, electric models can raise electricity usage compared to a traditional tank system.
However, many homeowners still save money overall because there’s no standby heat loss.
Whether the electric bill goes up with a tankless water heater ultimately depends on:
- Your household size
- Your hot water habits
- Portland’s local electricity rates
Is It Cheaper To Run a Gas or Electric Water Heater?
For Portland residents considering gas vs. electric tankless water heater operating costs, the cheaper option depends on energy prices and household size.
Gas water heaters often cost less to operate for larger households, while electric models can be more efficient for smaller families with lower hot water use.
Let the professionals at All Pro Plumbing help you take the guesswork out of choosing your next hot water heater. Call today!
Gas, Electric, or Tankless — All Pro Plumbing Will Help You Find the Right Water Heater for Your Home or Business
At All Pro Plumbing, we pride ourselves on being the experts in all things hot water heaters.
With over 20 years in the plumbing trade, our local, family, & veteran-owned plumbing company offers top-to-bottom service. You can count on us to meet your plumbing needs for home, remodels, routine maintenance, and emergencies.
We’re proud to service customers throughout the Portland, OR, metro area and beyond. If you’re looking for an affordable, top-quality Portland plumber, look no further than All Pro Plumbing.
