A Comparison of the two. . . 

Gas or electric tankless water heaters...better than an old tank heater, but which one will you choose? Your decision to select a gas or an electric tankless heater has to meet your needs.  Electric tankless water heaters cost on the average about $200 to $500 and more, US dollars.  Where as gas tankless heaters cost considerably more.  If you have been shopping then you have found that gas tankless heaters can be purchased for around $1000.  These prices do not even include the installation costs of either type of unit.   And, you may pay a lot more for a gas tankless system dependent on the brand name of the unit.

Electric tankless heaters are usually smaller than their cousin, the gas tankless unit.  The smaller SCR2 model of Titan tankless water heaters, the N-120 weighs in around 8 pounds and is 10" high, 7" wide and less than 3" deep.  That is about the size of a phone book in most big cities.  Other electric tankless heaters vary in size and weight.  Because of their size, an electric model can be installed in places that many gas tankless models simply cannot go.  Electric models can be installed practically anyway, under a sink, in a closet, in a garage, nearly anywhere on the inside of the home.  But note that tankless heaters must be protected from the elements.  Due to their size and ease of installation, the Titan electronic tankless water heaters can be located closer to the actual point of use.  Titan produces models that provide hot water for entire or whole house use.  However, in some circumstances, more than one Titan might be needed.  This is, of course, a personal and environmental choice due to your hot water needs, incoming water temperature at your location and the model you choose.  Most homes and businesses already have the electrical service for the hookup of electronic tankless water heaters.  This makes installation of an your Titan electronic tankless heater less costly than the installation of a gas tankless water heater.  Gas tankless heaters and the old style tank heater both have venting and combustion air supply requirements.  Installation can become very expensive, especially if trying to get one installed in a small, confined area.  Often, when replacing a gas tank sytem with a tankless system, the existing exhaust ducts and gas lines have to be replaced.  It is no wonder that additional venting, gas line replacement and space considerations can make the replacement or construction of an area inside your home very, very expensive.  Why would anyone want to pay $1500 to $3000 to put in something like a swimming pool heater just to provide you and your family with hot water? Titan electric tankless heaters are generally much smaller and as noted earlier, easier and much less expensive to install.  The Titan Tankless Heater uses only electricity which means that exhaust ventilation gas supply piping is NOT required.  The Titan tankless will fit in smaller areas as well.  Of course, a gas tankless water heater uses gas to heat water.  And, by doing so, it produces toxic exhaust gases (carbon monoxide).  In 2007 there was a recall of big name gas tankless water heaters when it was found that fumes would leak from damage to these units during normal shipment.  Carbon Monoxide or exhaust gases is not even a consideration or issue with an electric tankless water heater.  Why would you risk your family to such exposure?  (google search:  Tankless Recall)

Gas tankless water heaters are more effective than your old style tank heater.  Their efficiency is higher, and ranges up to around 85%. (Although this efficiency can drop off even further as the unit ages, due to internal scaling buildup.)  The electric tankless heaters are a real rival because their efficiency ranges up to nearly 99%.  This high efficiency is due the direct contact of the incoloy heating element with the water.  Gas tankless units heats the water indirectly, through metal, with a flame.  The Titan SCR2 model specification page indicates an energy efficiency of up to 99.5%.  And, the larger SCR4 models are rated at up to 99.5% in energy efficiency as well.  Note that natural gas, if obtainable at all in your location, is usually less expensive as an input fuel than electricity per unit of energy output.  However, this benefit may be offset by the higher energy efficiency of an electronic tankless heater, service life and the cost of installation.  Even with the government $300 tax credit with the gas tankless heater, you wil need considerably more money just to obtain, install and operate a less energy efficient gas tankless system.  Even if you were to save $30 to $40 per year using a gas tankless heater, it may take the life of the heater, which maybe as long as 20 years or more, just to break even.  And, even with the government's $300.00 tax credit incentive you will end up paying more for a gas tankless water heater and probably more just to have it installed correctly.  In addition, gas prices are not as controlled as the tighter controls found on electricity costs.  You are definitely not alone if you think natural and propane gas costs might rise over the coming years.

Operating costs are an important consideration for anyone's purchase decision.  Generally, gas tankless water heaters will cost around 15% less to operate than an electronic tankless heater and that will save you money.  However, put that cost savings in perspective with the huge actual out of pocket purchase and installation expense of a gas tankless heater.  If you do save, then remember, it may take you more than the life of the gas tankless water heater just to break even.  There are many areas where gas costs are really high because of the lack of supply.  Consider the old law of economics:  Less supply means higher demand and as a result, higher prices.  Electronic tankless water heaters are simply more energy efficient through the incoloy element's direct contact with water in the process of heating that water.  And, the overall costs difference between fuel types may be overcome through that electric tankless efficiency. Overall, with the high cost of obtaining and installing a gas tankless heater, even with a tax credit, you are probably better off with an energy efficient electric tankless heater. If you remember one thing then consider this:  It may take you the at least the life of the gas tankless heater to break even in actual installation and operating costs compared to an energy efficient and the low purchase and installation cost of an electronic tankless heater such as the Titan Tankless Heater.