Gas Water Heaters
Gas water heaters have long been recognized as the most energy efficient of all water heater models. Their heating capacity is twice that of electric water heaters, while the heating cost is half that of electric models. Gas can power both storage type, as well as tankless water heaters. Gas tankless water heaters in fact, are considered to be the most energy efficient of on demand water heater types. They also offer a greater pressure of water, making them suitable for large households where there is greater need for water.
Gas water heaters however involve higher installation costs, and a higher cost of the unit. A gas water heater can cost more than $1000, while an electric model can cost between $500 and $700. Even with these high installation costs, you can make up the cost of your gas water heater in less than a year. Newer federal energy standards now require gas water heaters to be at least 10% more energy efficient than before. To meet these standards, companies have added greater amount of insulation to the heaters, making them up to 4" thicker. This might pose a problem if you want to install your gas water heater in a confined space.
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