What is your opinion on the comparison of the operating costs of a propane tankless water heater vs. an electric hybrid, like the GE GeoSpring? -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 can save quite a bit over the long run on the energy cost of heating hot water. Gas tankless models generally can cut your costs by about 25%. The GE GeoSpring hybrid claims to cut costs up to 62% when running on full heat pump mode but would probably be closer to 50% overall, which is still pretty impressive.

My main gripe with energy efficient hot water heaters, like tankless and heat pump models, is cost. Gas tankless hot water heaters cost from $700 to $1500 not including installation, which usually will require running a larger gas line. The GeoSpring hybrid retails for around $1400 and up.

When you factor in your annual savings, it’s going to take up to 10 years or more to break even with a tankless water heater and roughly 7 years on a heat pump hybrid. An added benefit with heat pump models is that they vent cool air, which can be used to supplement your indoor conditioning.

Factoring all that in, I would tend to lean more toward a heat pump hybrid water heater than a tankless model.

Good luck with your project,

Further Information

• How to Choose a Hot Water Heater (article)
• What Is the Cheapest Way to Heat Water for Your Home (article)
• Energy Efficient Tankless Water Heaters (video)
• Energy Efficient Hot Water Heaters (video)

Tags: , GE GeoSpring, hot water heater, tankless, water heater