Is It Worth Converting a Gas Water Heater to An Electric? A Guide For The Pros

As plumbers, we’re constantly fielding questions from homeowners looking to upgrade their systems. They want to know about efficiency, they want to save money, and increasingly, they want to know about electrification. One of the most common questions popping up lately is: Is it worth converting a gas water heater to an electric?

It’s not just a simple swap. As you know, there are venting issues, electrical panel capacity, recovery rates, and long-term operating costs to consider. But with the push toward greener homes and the rising efficiency of heat pump technology, this conversation is happening more often at the kitchen table.

In this guide, we’ll break down the pros, cons, and technical realities so you can give your clients the best advice possible—and maybe even upsell a few heat pump hybrid units along the way.

Understanding Gas Water Heaters

Before we dive into the conversion debate, let’s quickly recap the incumbent technology. For decades, gas has been the standard in many of our service areas—especially in Texas and parts of Nevada where natural gas lines are common.

How they work

Standard atmospheric gas water heaters use a burner at the bottom of the tank. The heat rises through a central flue, transferring energy to the water. They rely on convection to exhaust gases up and out of the home. It’s simple, reliable technology that we’ve been installing for generations.

Pros and Cons

Pros:

  • High Recovery Rate: Gas units heat water faster than standard electric resistance models. For large families, this is a huge selling point.
  • Lower Operational Cost (Historically): In many regions, natural gas has historically been cheaper per BTU than electricity, though this gap is closing in some markets.
  • Works in Power Outages: Standard pilot light models often keep working even when the grid goes down (though newer power-vent models obviously don’t).

Cons:

  • Inefficiency: Much of the heat energy is lost up the flue. Even decent models might only be 60-70% efficient compared to electric options.
  • Safety Risks: We always have to be mindful of carbon monoxide and gas leaks. Proper venting is non-negotiable.
  • Maintenance: Burner assemblies need cleaning, and pilot lights can be finicky.

Understanding Electric Water Heaters

On the other side of the ring, we have electric water heaters. These used to be the backup option for homes without gas lines, but technology has changed the game.

How they work

Traditional electric units use two resistance heating elements (upper and lower) immersed directly in the water. When the thermostat calls for heat, the current runs through the element, heating the water with near 100% efficiency at the point of use.

But the real game-changer is the Heat Pump Water Heater (HPWH), or hybrid electric. These pull heat from the surrounding air and transfer it into the tank, rather than generating heat directly.

Pros and Cons

Pros:

  • Safety: No combustion means no carbon monoxide risk and no backdrafting concerns.
  • Efficiency: Standard electric is efficient, but hybrids are incredible—often 300-400% efficient. This is usually the tipping point when clients ask, “Is it worth converting a gas water heater to an electric?”
  • Solar Compatibility: For clients with solar panels, an electric tank acts like a battery, storing cheap solar energy as hot water.

Cons:

  • Slower Recovery: Standard electric resistance is slower than gas. (Hybrids can be slower too, though many have “high demand” modes).
  • Electrical Load: They require a dedicated 240v circuit, which can be a hurdle in older homes.
  • Operational Cost (Standard Models): In areas with high electricity rates, running a standard resistance heater can be pricey compared to gas.

Factors to Consider Before Converting

When a customer asks you if they should switch, you need to walk them through the math. Here are the three main pillars of that conversation.

Cost Analysis

This is usually where the decision is made.

  • Upfront Costs: Converting is almost always more expensive upfront than a like-for-like replacement. You have the cost of the unit (hybrids are pricey), plus the labor to cap the gas line and run a new 240v electrical circuit.
  • Operational Expenses: If they switch to a standard electric tank, their bills might actually go up depending on local utility rates. However, if they switch to a heat pump water heater, they could save hundreds of dollars a year.
  • ROI: You need to help them see the payback period. A $3,000 install might pay for itself in 5 years if the operational savings are high enough.

Energy Efficiency

If the client is focused on efficiency, electric wins—specifically heat pumps. A standard gas heater has an Energy Factor (EF) of around 0.60 to 0.70. A standard electric is roughly 0.90 to 0.95. A heat pump water heater? You’re looking at an EF of 3.0 to 4.0. That is a massive difference in energy consumption.

Environmental Impact

For environmentally conscious homeowners, moving away from fossil fuels is a priority. Is it worth converting a gas water heater to an electric to reduce carbon footprint? Generally, yes. As the grid gets greener (more wind and solar), that electric water heater gets cleaner over time. A gas heater will burn fossil fuels forever.

Step-by-Step Conversion Process

As the pro, you know the drill, but it helps to have a checklist when planning these jobs to ensure nothing slips through the cracks.

Necessary Preparations

  1. Load Calculation: Before you sell the job, check the main electrical panel. Does the house have 200-amp service? Is there physical space for a double-pole breaker? If they need a panel upgrade, that kills the budget fast.
  2. Location Check: If installing a heat pump unit, do they have enough air volume? These units need roughly 1,000 cubic feet of air space to “breathe,” or you’ll need to duct the intake.
  3. Venting Strategy: What happens to the old flue? It needs to be properly capped or removed, especially if it’s a shared vent with a furnace.

Tools and Materials

Beyond your standard plumbing kit (wrenches, pipe cutters, soldering gear or press tools), a conversion requires specific electrical supplies:

  • 10/2 wire (typically)
  • 30-amp double-pole breaker
  • Electrical disconnect box (if not in sight of the panel)
  • Cap for the gas line
  • Condensate pump and tubing (for heat pump models)

Safety Measures

  • Gas Safety: Shut off the gas at the main or the isolation valve before touching the union. Use a sniffer or bubble solution to ensure the cap is 100% sealed.
  • Electrical Safety: Verify the power is off at the panel before terminating connections.
  • Condensate Management: If you’re installing a hybrid, don’t forget the condensate drain. Unlike standard gas or electric tanks, these produce water. If there’s no floor drain nearby, you need a pump, or you’ll have a flooded garage.

Is it worth converting a gas water heater to an electric?

So, is it worth converting a gas water heater to an electric?

It is WORTH IT if:

  • The homeowner plans to stay in the home for 5+ years (to recoup installation costs).
  • They are installing a Heat Pump Water Heater (Hybrid), not a standard electric unit.
  • They have solar panels or favorable electricity rates.
  • Their electrical panel has capacity.
  • The unit is located in a garage or basement with plenty of airflow (ideal for hybrids).

It is probably NOT worth it if:

  • They are on a tight budget for the install.
  • They require a massive electrical service upgrade to make it happen.
  • They have cheap natural gas and expensive electricity.
  • The water heater is in a tiny closet where a heat pump unit can’t breathe.

As professionals, our job isn’t just to turn wrenches—it’s to be the expert consultant. When you help a customer make the right choice for their specific home, you earn a customer for life.

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Whether you need a high-efficiency gas unit, a state-of-the-art hybrid electric, or just the breaker and wire to finish a conversion, we’ve got you covered.

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