You may have heard that a tankless gas water heater is more efficient than an electric-powered tankless heater, and therefore you are concentrating mainly on the gas-fuelled version as you search for the heater you want in your home. If the main source of energy in your home comes from gas, then that may be the only choice you have anyway, and you'll fine many excellent brands. But if you do have the option of choosing either way, it won't hurt to do a comparison between gas and electric water heaters, to make absolutely sure that gas is the way you really want to go.
One of your reasons for choosing a tankless water heater powered by gas is probably environmental, as you don't want to use a tank that is constantly consuming energy as it heats water all day and night. A tankless system, on the other hand, uses energy primarily when the water is needed.
Yet keep in mind that a gas-fueled heater is still likely to leave a greater environmental footprint than an electric heater. After all, it still emits greenhouse gases, and does nothing to reduce your dependence on fossil fuels. Although, if you're in a region where electricity is produced by burning coal, then that issue may be moot.
The tankless gas water heater unfortunately doesn't fare as well when it comes to cost either. Gas systems require a lot of added venting in a home. In fact, since they run hotter than the traditional tank water heaters, the vents need to be made of higher grade materials, which could mean a complete renovation if you're getting a whole-house system. Then you have the cost of yearly inspections and maintenance to push the price higher, which you don't have with electric systems.
An on demand water heater can save on energy costs and on energy demand, and theoretically be a more environmentally responsible option for heating the water in your home. Yet the costs and energy questions associated with a tankless gas water heater may simply not live up to high enough economic and environmental standards. It's true that this kind of system is still the most popular of the tankless options, and yet when you look at all the factors, an electric system may ultimately be the better choice.
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