Discover the pros and cons of electric water heaters, from efficiency and safety to costs and environmental impact. Make an informed choice for reliable home comfort.
Electric Water Heater: Pros & Cons
Electric water heaters are a cornerstone of home comfort, offering a reliable source of hot water for various household needs. In this blog post, we explore the pros and cons of electric water heaters, discuss popular types like tankless water heaters and hot water tanks, and provide insights into their efficiency, cost, and environmental impact.
At Dynamic Heating and Cooling, we understand the importance of home comfort. Even though water heaters are more related to plumbing than HVAC, we love giving insight into all aspects of improving your home comfort.
Article Summary
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- Efficiency: Electric water heaters are highly energy-efficient and convert most electricity into heat.
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- Cost: Lower installation costs but higher long-term operating expenses compared to gas systems.
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- Safety: Electric systems eliminate risks associated with gas leaks and carbon monoxide.
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- Reliability: Perform consistently in cold climates but are dependent on electricity.
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- Space-saving: Compact designs are ideal for urban homes.

Benefits of Electric Water Heaters
Electric water heaters are energy-efficient, affordable to install, safe, and eco-friendly. They provide consistent performance in cold climates, require minimal space, and can be powered by renewable energy sources, making them ideal for homes in the Greater Toronto Area.
Choosing an electric water heater for your home comes with several advantages, especially if you reside in the Greater Toronto Area where efficiency and safety are paramount. Here are some of the key benefits of opting for electric water heaters:
High Efficiency
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- Electric water heaters are known for their high energy efficiency.
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- Unlike gas water heaters, which lose heat through flue gases, electric heaters convert almost all the electrical energy into heat.
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- This makes electric tankless water heaters, electric on-demand water heaters, and electric tankless boilers excellent choices for energy-conscious homeowners.
Lower Installation Costs
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- The installation of electric water heaters tends to be simpler and cheaper compared to gas systems.
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- This is especially true for installations of electric on-demand hot water heaters and electric tankless water heaters in Canada.
Safety and Convenience
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- Electric water heaters are generally safer than their gas counterparts.
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- There’s no risk of gas leaks or carbon monoxide poisoning, making them a reliable choice for many households. Additionally, options like the electric on demand water heater provide immediate hot water without the wait, enhancing convenience.
Consistent Performance in Cold Climates
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- For residents of the Hamilton & the Greater Toronto Area, electric water heaters offer reliable performance even during harsh winters.
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- Electric systems are less affected by external temperatures compared to gas systems, ensuring a steady supply of hot water year-round.
Environmental Impact
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- Electric water heaters can be powered by renewable energy sources, reducing your carbon footprint.
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- Integrating your electric water heater with solar panels or a community solar program can make your home more eco-friendly and lower your energy bills.
Space-Saving Designs
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- Many electric water heaters, such as electric tankless water heaters and electric on demand water heaters, have compact designs that save space.
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- This is particularly beneficial for urban homes in the Greater Toronto Area where space can be limited.
Cons of Electric Water Heaters

Electric water heaters have their advantages, but they also come with some disadvantages. Knowing these drawbacks can help you make a more informed decision. Let’s explore the key cons of electric water heaters:
Higher Operating Costs
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- Although electric water heaters are efficient, electricity is often more expensive than natural gas.
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- This can lead to higher long-term operating costs compared to gas water heaters.
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- While the initial installation is cheaper and simpler, the ongoing electricity expenses can add up, potentially making them less cost-effective over time.
Slower Heating
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- Electric water heaters typically heat water at a slower rate than gas systems.
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- For larger households with high hot water demands, this can mean:
Running out of hot water faster during peak usage periods.Longer recovery times after heavy usage (e.g., multiple back-to-back showers).
Dependence on Electricity
Electric water heaters rely entirely on electricity. In the event of a power outage, they will not function, which can be a significant inconvenience.
Unlike gas water heaters that can continue to operate during power failures, an electric tankless water heater or an electric on demand water heater will leave you without hot water until power is restored.
Limited Placement Options
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- Although electric water heaters are generally easier to install, they still require access to a reliable electrical supply.
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- This means that placing an electric water heater in certain areas of your home, such as a detached garage or an outdoor shed, might not be feasible without additional electrical work.
Environmental Impact of Electricity Source
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- While electric water heaters themselves don’t emit greenhouse gases, their environmental footprint depends on the source of electricity.
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- In areas relying heavily on fossil fuels for electricity generation, they may be less environmentally friendly than gas-powered systems like propane or instant water heaters.
In Summary
Electric water heaters can be a convenient and efficient choice, but they’re not without their challenges. Factors like operating costs, heating speed, reliability during outages, and environmental impact should all be carefully considered when choosing between gas and electric systems.
By weighing these pros and cons, you can select the water heater that best suits your home’s needs and priorities.
Types of Electric Water Heaters
Understanding the different types of electric water heaters available can help you make an informed decision that best suits your household’s needs. Here’s an in-depth look at some popular options:
Electric Tankless Water Heater
Tankless electric water heaters heat water on demand, providing a continuous supply without the need for a storage tank. This type of heater, often referred to as an electric instant water heater or electric on demand water heater, is perfect for households looking to save space and reduce energy consumption.
Electric Hot Water Tank
Electric hot water tanks, such as the 40 gallon hot water tank, store a large volume of hot water, ensuring it is always available when needed. These are ideal for larger households with high hot water demands.
Electric Tankless Boiler
An electric tankless boiler provides both heating and hot water, making it a versatile option for homes needing both functionalities from a single unit. This system is efficient and saves space by eliminating the need for a separate water heater and boiler.
Navien Tankless Water Heater

Navien offers highly efficient electric and propane hot water on demand systems that are worth considering for their reliability and performance. These systems are particularly known for their advanced technology and energy-saving features.
Tankless Water Heater Canada
For Canadian homeowners, tankless water heaters are an excellent choice due to their efficiency and space-saving design. Electric tankless water heaters in Canada are especially popular due to their ability to provide instant hot water in colder climates.
Conclusion
In conclusion, electric water heaters offer numerous benefits, including high efficiency, safety, and lower installation costs. However, they also come with higher operating costs and slower heating times compared to gas water heaters. Understanding these pros and cons can help you make an informed decision when choosing an electric water heater for your home.
For professional advice and services, contact us at Dynamic Heating and Cooling for your HVAC maintenance, repair, and installation needs. Our expert HVAC team are ready to help you find the best solution for your heating and cooling requirements.
FAQs
Electric water heaters offer high efficiency, safety, lower installation costs, and consistent performance in cold climates. They are also eco-friendly and can be powered by renewable energy sources.
The main drawbacks include higher operating costs due to electricity being more expensive than gas, slower heating rates, and longer recovery times after heavy usage.
There are primarily three types: Electric Tankless Water Heaters, which provide continuous hot water without a storage tank; Electric Hot Water Tanks, ideal for larger households; and Electric Tankless Boilers, which offer both heating and hot water from a single unit.
Regular maintenance includes checking the heating elements, ensuring proper tank insulation, and monitoring water pressure. It's also important to turn off the power before inspecting any electrical components.
While possible, it's recommended to hire a professional to ensure safety and compliance with local electrical codes. Additionally, a dedicated electrical outlet is required for installation.
Electric hot water tanks are generally better for large families due to their ability to store more hot water. However, they may require more energy and have longer recovery times compared to tankless modelsas.
Consider factors such as household size, hot water demand, available space, and budget. An in-home assessment can help determine the best option for your specific needs.
Yes, some models include advanced features like voice control, which can enhance convenience and accessibility, especially for users with disabilities.
Installation costs are generally lower than those for gas systems, but ongoing electricity expenses can be higher over time. Consider both upfront and long-term costs when deciding.
Electric water heaters convert most of their energy into heat, making them highly efficient. However, gas models often cost less to operate due to lower fuel costs.
Rheem, A.O. Smith, Bradford White, and Stiebel Eltron (tankless). Local suppliers like John Wood and Enercare offer Hamilton-specific warranties and service plans.
2-4 hours for a standard replacement. New installations (e.g., tankless) may take 6-8 hours if electrical upgrades are needed. Hamilton permits add 1-2 days for approval. Always hire a licensed HVAC technician for code compliance.
For 1-2 people: 30-40 gallon tank or small tankless unit. For 3+ people: 40-50 gallon tank or medium-capacity tankless (6-8 GPM). Measure space—tankless saves room in compact Hamilton condos.
Yes! Hamilton’s hard water causes scale buildup. Choose glass-lined tanks or stainless-steel models with anode rods. Add a water softener or descaling system to extend lifespan. Tankless units require annual flushing with vinegar to prevent mineral clogging.
Tankless heaters heat water on-demand via electric coils, eliminating standby energy loss. Ideal for small Hamilton homes, but in winter, incoming cold water (below 5°C) may reduce flow rate. Pair with a preheating system or use for single-appliance needs (e.g., showers).
A 50-60 gallon storage tank or tankless electric heater (for endless hot water) suits most Hamilton families. Tankless saves space but requires higher upfront costs. For efficiency, consider a hybrid heat pump model if your basement stays above 10°C.
Electric water heaters are more efficient in converting energy into heat, as they don't lose energy through flue gases like gas models do. However, electricity can be more expensive than gas, affecting overall cost efficiency.
Consider your household size, hot water demand, available space, and budget. An in-home assessment can help determine the best option for your specific needs.
Yes, electric water heaters are safer than gas models as they eliminate the risk of gas leaks and carbon monoxide poisoning
Yes, mixing valves are available and recommended to control water temperature and prevent scalding, especially in new constructions.