If you are in the market for a new hot water heater, you’ve probably come across different types of hot water heaters, including heat pump water heaters vs gas water heaters. However, you may be wondering what differentiates them. In this article, we are going to break down the differences between heat pump water heaters vs gas water heaters. After reading this article, you will know what makes each heater unique, and have a better idea of which one belongs in your home.
Heat Pump Water Heater vs Gas—Functional Differences
So, let’s start with a basic question: what is the functional difference between a heat pump water heater vs gas water heater?
A heat pump water heater uses a fan to suck in air from your home. The air then goes through an evaporator, where it is compressed. The compression raises the temperature and pressure of the air. In turn, this process raises the temperature of the water in the tank, which the heat pump then sends throughout your home. This process repeats throughout the day to ensure that your home constantly has access to hot water.
Meanwhile, a gas water heater functions differently. In a gas water heater, cold water enters through a supply tube, where it is then heated by a gas burner from below the tank. As the water’s temperature increases, it rises up the tank. Near the top of the tank is a hot water discharge pipe, which funnels the hot water out of the tank to wherever it needs to go in your home. The burner is controlled by a regulator on the side of the water heater, which can turn the burner on and off, and regulate its temperature.
Heat Pump Water Heater vs Gas—Size Difference
Heat Pump Water Heaters
Okay, so let’s talk about heat pump size for a moment. Heat pump water heaters come in four different sizes: 40-gallon, 50-gallon, 65-gallon, and 80-gallon. The size of the heater you need will depend on the size of your home. A 50-gallon tank is what is typically recommended for a standard 3-bedroom home. Of course, you should always discuss the appropriate tank size with a professional who can give you an educated recommendation.
Gas Water Heaters
Just like heat pump water heaters, gas water heaters come in a variety of sizes. Also, like heat pump water heaters, the size of your gas water heater tank will depend on how many people need hot water in your home. Typically, a 30 or 40 gallon storage tank is appropriate for a smaller household with 1-2 people. Meanwhile, a medium size tank (50 to 60 gallons) works well for 3-4 people. For a large household of 5 or more people, you will want a tank that is 70-80 gallons.
Ultimately, sizing probably isn’t a make or break issue regardless of which tank you choose. As you can see, the sizing is roughly similar between these two types of hot water heaters.

Heat Pump Water Heater vs Gas—Price Difference
Of course, the exact price of your heat pump water heater will vary, depending on the size and brand you purchase. However, on average, you can expect to pay between $1,500 and $3,000, not including installation costs. With that price tag in mind, it is important to mention that there are some state-sponsored rebates and federal tax credits available if you purchase an Energy Star-rated heat pump water heater, which could save you hundreds. Additionally, you should know that heat pump water heaters are efficient and will save you thousands of dollars compared to a traditional water heater over their life span.
Like heat pump water heaters, gas water heaters vary widely in price, largely based on their size. Gas water heaters can start as low as $700 and go all the way up to $2,700. On average, they are cheaper than heat pump water heaters, though it is important to know that they are also less efficient. Over time, your energy bill will be higher with a gas water heater than a heat pump water heater, which is important to take into consideration.
Additionally, for both heat pump water heaters and gas water heaters you want to think about the cost of installation. Again, pricing for a particular installation depends on the situation, but for a heat pump water heater you should expect to pay anywhere from $1200 to $3500 for an install. Meanwhile, the installation price for gas water heaters tends to be cheaper on average and can range from $800 to $1500. Typically, the bigger your tank, the more expensive it is to install. Expect to pay closer to the lower end of these ranges if you have a small tank, and closer to the higher end of them if you have a large one.
Heat Pump Water Heater vs Gas—So Which One Is Right For You?
Here is the big question; which type of water pump is going to best suit your needs? The answer to this important question depends on who you are, where you live, and what your needs are. Perhaps you care more about the upfront cost of your water heater, in which case a gas water heater might be better for you. Alternatively, you might care more about efficiency, in which case you will want to go with a heat pump water heater. These are just some of the many factors to take into consideration, so be sure you continue to do the appropriate research (like you are doing right now!) and consult with a professional. At Live Free, our experts know all about heat pump water heaters vs gas, and they are always happy to break it down for you and make a suggestion for your home.

Need a Heat Pump Installed in Your Home?
Then call Live Free Heating Cooling Electric immediately! Live Free has proudly served New Hampshire residents since we opened our doors in 2014. Installation, maintenance, and repair for heat pumps is a core part of our business, and our experts can handle any problem you have. So, what are you waiting for—contact Live Free today!