Gas vs Electric Tank Water Heater

Recovery Rate and First-Hour Rating Face-Off

Recovery rate is the gallons a water heater can reheat in one hour once the tank starts pulling from cold inlet water. A standard 40-gallon natural gas tank recovers at roughly 40 to 50 gallons per hour. A standard 40-gallon electric tank with dual 4,500-watt elements recovers at only 20 to 21 gallons per hour. A 40,000 BTU gas burner pumps about 11.7 kilowatts of energy into the water. An electric element tops out at 4.5 kilowatts and only the upper or lower element runs at a time, never both.

First-Hour Rating (FHR) combines tank volume plus recovery to tell you how much hot water you can pull in the first 60 minutes. A 50-gallon gas Rheem with 40,000 BTU input is typically rated at 86 to 90 gallons FHR. A 50-gallon electric Rheem is rated at 62 to 67 gallons FHR.

Electric does win on efficiency and install simplicity. Standard electric tanks hit 0.93 to 0.95 UEF. Standard atmospheric gas sits around 0.58 to 0.64 UEF because 30 to 40 percent of the heat goes up the flue. Direct-vent and power-vent gas pulls up to 0.70 UEF.

Quick Comparison Table

Tampa Install Cost: Gas vs Electric Conversion

Electric to electric replacement, basic install: $1,500 to $2,000. Includes a 50-gallon Rheem Performance or Performance Plus, new 3/4-inch flex connectors, code-required drain pan, brass T and P valve, thermal expansion tank, and we pull the permit (the permit fee is billed separately).

Gas to gas replacement, line already present: $1,845 to $2,400. Same basic scope plus new sediment trap, gas flex, and vent connector inspection.

Converting electric to gas (new gas line required): $3,500 to $5,500. You are paying for Peoples Gas service run to the property (if not present), new interior gas piping from meter to heater location (typically 25 to 50 feet of black iron or CSST at $28 to $42 per foot installed), a direct-vent or power-vent appliance, PVC intake and exhaust through the wall or roof, 120V outlet for the power-vent fan, and pulling the gas and plumbing permits (the permit fees are billed separately). If Peoples Gas has to trench the yard to bring the main to the meter, their tap fee runs $800 to $1,800 on top.

Converting gas to electric: $1,500 to $2,200. Usually simpler. Cap and pressure-test the gas line, run a new 30-amp double-pole 10/2 circuit from the panel, install the tank, and close the vent penetration. Some older Tampa homes need a panel upgrade if there is no available double-pole breaker space, which adds $400 to $900.

Florida Venting Code Requirements

Under the 2017 Florida Building Code (effective December 2017, enforced from 2018 onward), atmospheric-vent gas water heaters are no longer permitted in garages, closets off garages, or any location where they can pull combustion air from a space that stores vehicles. The rule exists because atmospheric units draw room air for combustion and can backdraft carbon monoxide into the dwelling.

What you can install in a Tampa garage today: a direct-vent gas water heater (sealed combustion, intake and exhaust both vent through concentric PVC to outside) or a power-vent gas water heater (fan-forced exhaust, intake from room air, 120V outlet required). Tankless units are almost always direct-vent by design. Electric tanks and hybrid heat-pump tanks have no combustion and are fully permitted in garages.

This matters because many Tampa-area tract homes built from the 1970s through early 2000s were spec-built with the water heater in the garage. If you have an old atmospheric-vent gas tank sitting in your garage and it fails, you cannot legally replace it with another atmospheric unit.

Natural gas is not universal in Tampa Bay. Peoples Gas System serves most of Hillsborough County (Tampa, Brandon, Riverview, Valrico, Plant City) and portions of Pinellas (St. Petersburg, Clearwater). It does not serve newer tracts in Lutz, Odessa, or parts of Wesley Chapel. Check peoplesgas.com service availability by zip before committing to a gas heater.

TECO Electric vs Peoples Gas Operating Cost Math

TECO electric residential rate: roughly $0.14 per kilowatt-hour. A 50-gallon electric tank serving a 3-person household uses about 3,100 to 3,600 kWh per year heating water. Annual operating cost: $430 to $500.

Peoples Gas residential rate: roughly $1.10 per therm. A 50-gallon atmospheric gas tank uses about 240 to 280 therms per year for the same 3-person household. Annual operating cost: $265 to $310. Power-vent and direct-vent gas land slightly higher at $285 to $340.

The raw operating savings for gas over electric is about $150 to $220 per year. If you already have gas service and a code-compliant vent path, gas pays for itself in 2 to 3 years. If you are converting from electric to gas and spending $3,500 to $5,500 extra up front, break-even stretches to 4 to 6 years depending on household size.

The curveball is the hybrid heat-pump electric tank. A 50-gallon Rheem Performance Platinum Hybrid runs at $200 to $300 annual operating cost, which beats gas. Catch is it needs 700 cubic feet of air space (a 2-car garage qualifies), and sticker price is $4,148 to $6,844 installed.

Rheem Model Recommendations

Electric picks. The Rheem Performance Platinum 50-gallon electric ($1,800 to $2,400 installed) is the workhorse. 12-year tank warranty, LeakGuard sensor and auto shut-off valve, EcoNet WiFi module optional. For homes in Brandon, Lutz, Valrico, and Plant City where well water or hard municipal water chews through standard anodes, we upsize to the Rheem Gladiator 50-gallon electric ($2,100 to $2,600 installed).

Gas picks. If you have natural gas and an approved vent path, the Rheem Performance Platinum 50-gallon Natural Gas ($2,100 to $2,700 installed) covers most Tampa households. 12-year warranty, 40,000 BTU burner, 88-gallon FHR. For garage installs that require direct-vent under FBC, the Rheem Professional Classic Plus Power Vent 50-gallon ($2,600 to $3,200 installed) is the right call.

Rebate paths. TECO offers a Residential Energy Efficiency Rebate of $50 for qualifying electric tanks and up to $300 for hybrid heat-pump units. Peoples Gas runs periodic $100 to $150 rebates on high-efficiency gas tanks. We file the paperwork as part of the install.