Several factors go into deciding whether a gas-powered or electric-powered tankless water heater is right for you. The most important is the availability of a gas line at the installation point. If you don’t already have a gas feed in the house, you’ll have to have the appropriate type of service installed. It may be simpler and most cost effective to just go with an electric heater.
Electric water heaters are less expensive. In some cases, they can cost as little as $500. Base prices don’t usually include installation, however, so be sure to factor that in.