Prices for gas water heaters are a bit higher than prices for electric water heaters, but most models make up for the higher cost and slightly higher installation charge over time because gas costs less than electricity.
Thus, a gas water heater is, in almost every case, a more cost-efficient option than an electric hot water heater.
Most studies on this issue indicate that gas heats water at up to 1/3 the cost of electric models. That means that most gas hot water heaters will make up for their higher price within several years time. So if you are planning to stay in the residence where you are having a water heater installed for more than a few years, then a gas heater might be the way to go for you.
Price Range for Gas Water Heaters
Gas hot water heaters can be purchased for between $300 and $900, on average, depending on the size of the heater that you want. A solid 40-gallon heater that will keep a small family well supplied with hot water can be found for prices under $500. A top-of-the-line 65-gallon heater (for a very large house or family) will cost $200 more.
For a large list of gas water heaters, reviews and their current prices, please check this page
Add in the Price for Installation
Gas heaters also cost a little more to have installed than electric models because they required venting for gas that is released and a slightly more complicated process. If you are switching from electric to gas, this will also boost your installation cost because more pipes and holes will be needed.
If you would like to know the exact cost of installation, just click here for up to 4 free quotes from qualified contractor in your area.
A gas hot water heater also necessitates space around it for proper venting, so make sure that your basement ceiling is tall enough to handle a gas water heater before buying one (most are). Other add-ons can include additional holes in your wall if your home is older and not fitted for a gas hot water heaters, as well as possible charges for inspection of your gas heater, depending on where you live.
Gas hot water heaters give reliable performance, but some consumers shy away from them because of the danger of gas leaking or even because they do not want to have to re-light the pilot flame in the case of a power outage, etc. For these homeowners, a gas hot water heater is not the right option at any price; the slightly higher price of gas models simply re-affirm their decision to go electric.