Estimating the Cost of a New Water Heater

My water heater started leaking on the ground a couple weeks back, a sure-fire sign that it needs to be replaced quickly before it rusts out entirely and we’re stuck with no hot showers or dishwasher.

I happen to live in a town that has it’s own electric company, affording me the luxury of having electric rates that are somewhere near one-third the cost of the next town over. My electric rates are $0.03591 / kWh.

So my immediate inclination was to replace my old dying natural gas water heater with a new electric water heater. It felt like it should be the cheaper option for us to run. But I never did the calculation, so I thought it’d be a fun exercise to geek out and see what my bills should look like for my old natural gas heater versus a new electric or natural gas heater. We can see whether or not I was correct to choose electric out of hand just because I have super cheap rates compared to the norm.

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