Natural gas water heaters (storage tank)

The fuel decides this, not the model

Across 1,337 certified units on this fuel the median runs $344 a year. Across the 588 certified heat-pump water heaters the median is $196 — a gap of $149 a year, computed the same way for both from certified UEF and EIA average prices. Choosing between two units on this page changes a fraction of that. Changing fuel changes all of it.

A heat-pump water heater typically installs for $3,900 against $700–$3,100 for a like-for-like swap here, so on mid-range assumptions the switch repays itself in about 13 years , and even on the worst pairing in the data — the cheapest possible swap against a heat pump needing a panel upgrade — about 56. A tank lasts 10 to 15 years, so this one roughly breaks even over the life of the tank — close enough that the decision turns on your own install quote rather than on these medians.

Running costs are computed from certified UEF and EIA average energy prices — see our methodology. Installed ranges were compiled 2026-07-18 from multiple cost guides and widened, not averaged, where sources disagreed; no single typical figure is asserted for tank swaps, which is why a range is shown. A heat pump water heater needs clearance, condensate drainage and usually a 240V circuit, and it cools and dries the space it sits in — a plus in a garage, a minus in a conditioned closet. The federal 25C credit expired 31 December 2025 and does not apply; state and utility programmes may, and are on our rebates page.