Home Compare Electric Water Heater vs Electric Tankless Water Heater: Which Costs More to Run? (2026)
A tankless heater avoids the standby losses of a tank, saving 10 to 30 percent for most households. The catch is electrical capacity: a whole-house electric tankless unit draws 18 to 36 kW at once and often needs a panel upgrade. If you already have a well-insulated tank, the savings are smaller than the marketing suggests.
At the hours shown, Electric Water Heater costs about
$803.29 a year and Electric Tankless Water Heater about
$662.72 in the US .
Electricity price region United States (average) – 18.3¢/kWh Canada (average) – 14.0¢/kWh United Kingdom – 26.3p/kWh Germany – €0.370/kWh France – €0.200/kWh Australia – 35.0¢/kWh India – ₹6.00/kWh Alabama – 16.4¢/kWh Alaska – 28.2¢/kWh Arizona – 15.2¢/kWh Arkansas – 14.1¢/kWh California – 34.7¢/kWh Colorado – 17.1¢/kWh Connecticut – 24.3¢/kWh Delaware – 19.3¢/kWh District of Columbia – 24.4¢/kWh Florida – 15.1¢/kWh Georgia – 16.4¢/kWh Hawaii – 52.7¢/kWh Idaho – 14.4¢/kWh Illinois – 19.9¢/kWh Indiana – 17.5¢/kWh Iowa – 15.9¢/kWh Kansas – 15.7¢/kWh Kentucky – 14.3¢/kWh Louisiana – 13.5¢/kWh Maine – 29.6¢/kWh Maryland – 21.8¢/kWh Massachusetts – 29.6¢/kWh Michigan – 23.0¢/kWh Minnesota – 17.5¢/kWh Mississippi – 14.9¢/kWh Missouri – 16.2¢/kWh Montana – 15.1¢/kWh Nebraska – 13.2¢/kWh Nevada – 13.1¢/kWh New Hampshire – 27.0¢/kWh New Jersey – 24.9¢/kWh New Mexico – 15.1¢/kWh New York – 29.5¢/kWh North Carolina – 14.7¢/kWh North Dakota – 14.1¢/kWh Ohio – 19.2¢/kWh Oklahoma – 14.3¢/kWh Oregon – 16.3¢/kWh Pennsylvania – 21.7¢/kWh Rhode Island – 29.2¢/kWh South Carolina – 15.6¢/kWh South Dakota – 15.4¢/kWh Tennessee – 14.1¢/kWh Texas – 15.9¢/kWh Utah – 13.4¢/kWh Vermont – 24.4¢/kWh Virginia – 17.2¢/kWh Washington – 14.9¢/kWh West Virginia – 15.4¢/kWh Wisconsin – 19.6¢/kWh Wyoming – 15.2¢/kWh Quebec – 8.3¢/kWh Ontario – 15.0¢/kWh British Columbia – 12.6¢/kWh Alberta – 22.4¢/kWh Manitoba – 10.5¢/kWh Saskatchewan – 17.9¢/kWh Nova Scotia – 20.5¢/kWh New Brunswick – 16.6¢/kWh Prince Edward Island – 19.7¢/kWh Newfoundland and Labrador – 15.6¢/kWh Custom rate
Your price per kWh
Edit the hours to match your own use. Costs use the typical wattage of each appliance.
When the electric water heater makes sense Your electrical panel cannot support a very high load Several people shower at the same time You have cheap off-peak electricity to heat a tank overnight When the electric tankless water heater makes sense Hot water use is light or irregular Space is tight You are building or rewiring anyway
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