This is due to the way that the heaters operate.
Compare gas and electric tankless water heaters.
A tankless electric heater is generally cheaper than a propane tankless heater.
In comparison gas heaters usually have between 80 and 85 percent.
This is almost 2 times the price of an electric tankless water heater.
A gas heater must vent the spent gas which also takes some of the heat with it.
A gas water heater uses the heat from burning a fuel usually natural gas to heat water while an electric water heater uses electric resistance coils.
Top electric and gas heaters on the market.
Gas water heaters are less energy efficient than electric heaters but the cost of electricity itself makes the running costs of an electric heater higher.
Electric tankless water heaters are way cheaper than their gas fuelled competitors.
While gas hot water heaters cost less to run due to the lower cost of natural gas electric heaters are actually more efficient.
A good sized electric tankless water heater goes for around 500.
Review of the best tankless water heaters 2020.
At present a natural gas tankless water heater is about 10 15 cheaper to operate than an electric tankless heater.
For a good sized gas fuelled tankless heater costs between 1000 and 1200.
All this can offset the higher cost of electric power to some extent.
Similarly electric heaters can have higher energy factor ratings than gas heaters.