⚡ WattPrice

Gas vs Electric Water Heater Cost in North Carolina (2026)

💡 Quick fix: The Rheem Performance Platinum HPWH (UEF 4.0) qualifies for the 30% federal tax credit + most state rebates.See top HPWH →

For a typical 24 MMBtu/year of hot water in North Carolina (gas price using U.S. average): a natural gas tank costs about $607/year, an electric resistance tank costs $1229/year, and a heat pump water heater (HPWH) costs about $327/year.

Water heaterAnnual energyAnnual cost
Gas tank (EF 0.62) at $16.25/Mcf387 therms$607
Electric resistance tank (EF 0.93) at 16.25¢/kWh7,563 kWh$1229
Heat pump water heater (UEF 3.5) at 16.25¢/kWh2,010 kWh$327

Heat pump water heaters (HPWHs) qualify for a 30% federal tax credit (up to $2,000) and often state/utility rebates of $500–$1,500 additional.

Which to pick in North Carolina?

  • Cheapest to run: Heat pump water heater at $327/year.
  • Heat pump water heaters use about 4× less electricity than a resistance tank for the same hot water.
  • If you don’t have gas service, HPWH is almost always the cost winner over resistance, with payback in 3–6 years vs a $1,500–$3,000 install cost premium.
  • If you have gas already, the savings vs gas depend on your local gas price — in North Carolina the difference is $280/year in HPWH’s favor.

How we calculated this

Assumes a household using 24 MMBtu of hot water per year — a typical 2–4 person U.S. household. Energy needed = useful heat ÷ energy factor (EF). For gas (EF 0.62), 1 therm of fuel delivers 62,000 BTU of hot water; for electric resistance (EF 0.93), 1 kWh delivers 3,173 BTU; for HPWH (UEF 3.5), 1 kWh delivers about 11,940 BTU thanks to the heat-pump effect.

Water heater gear

Affiliate links — we may earn a small commission at no cost to you.

See also