Tankless vs. Heat Pump Hybrid Hot Water Heaters

What is your opinion on the comparison of the operating costs of a propane tankless water heater vs. an electric hybrid? -Charles

Hi Charles,

Anytime you’re comparing standard tank type natural gas and electric hot water heaters, natural gas will almost always be cheaper to operate. The energy cost for a propane hot water heater, however, is usually more expensive than either natural gas or electric. To compare the operating expenses of all three energy sources in your area, use our online hot water heater energy cost calculator.

Both natural gas tankless and electric heat pump hybrid hot water heaters are much more energy efficient than standard tank type water heaters and can save quite a bit over the long run on the energy cost of heating hot water.

Good luck with your project,


Further Information


  1. Hi Danny. Thanks for the comparison info on the Heat Pump Water Heater vs. the Tankless Water Heaters. If you take the efficiency of these units as simply the overall energy cost savings of operating, and not how much you’d have to recoup on your investment, which system, tankless or H.P. Water heater would you recommend? Thanks, Bob.

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  3. We live in NM where we are in a drought and need to conserve water. We are reluctant to go tankless since you have to run water for awhile before your water temperature gets comfirtable with the tankless. We have solar, so we were thinking of going to an electric water heater. We have gas now. What are your thoughts for water heaters in the Southwest who have water conservation as a top priority?

  4. I am currently in a new house in W.Maine. I heat with wood mostly, but my hot water is directly off the furnace. This runs quite a bit, and I have been using 35 gallons of oil per month. At today’s $1.65 gallon oil prices, the cost is not huge, about $57 per month. Within the past two years, I paid more than 2.5 times this amount for oil. I am in the house alone most of the time, and would like to consider a tankless hot water heater. I have no Natural Gas, so it would need to be propane. I cannot assess what the savings would be. I only know what I am using now. Is there any reliable way to predict usage in this case?

  5. I too am in Maine and looking at switching to either a tankless propane condensing water heater or an electric hybrid water tank. Currently on an oilburner furnace with hot water fed from it. I have a family (6 total) so capacity is an issue with the water tanks and running on heat pump mode only. Do you have any advice? Either way I go I’d have to start from scratch, no propane at the home, no electric water heater or electrical wiring for an electric water heater.

  6. This can be achieved by wall and loft insulation, although
    many of the natural building materials are very good insulators, so wall insulation may not be required, however water pipes and hot
    tanks should be well insulated to prevent heat loss.


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