75 L is the Natural Resources Canada average.
A starting value. Replace it with the price on your BC Hydro bill.
FortisBC variable charges, rates effective July 1, 2026. Excludes the daily basic charge.
Efficiency (UEF) of each unit
Typical value, assumed.
ENERGY STAR minimum for integrated units.
Assumed for a standard tank. ENERGY STAR gas tanks start at 0.81.
ENERGY STAR minimum.
Estimated energy cost per year
| Water heater | Energy used | Cost |
|---|---|---|
| Electric tank | 5,190 kWh | $623 |
| Heat pump water heaterlowest | 1,447 kWh | $174 |
| Gas tank | 26 GJ | $333 |
| Gas tankless | 18 GJ | $228 |
Based on 82,125 litres of hot water a year heated from 10 C to 60 C.
Estimate only. It leaves out fixed monthly utility charges, equipment and installation cost, rebates, standby losses that differ from the UEF test, and the lower heat pump efficiency in a cold room. Have a licensed plumber confirm what suits your house.
Choosing between an electric tank, a heat pump water heater, a gas tank and a gas tankless unit usually comes down to two numbers: what it costs to buy and install, and what it costs to run. This tool covers the second one. Enter how many people live in the home and what you pay for electricity and natural gas, and it estimates the energy each type of unit would use in a year and what that energy costs.
It pairs with our guides to tank, tankless and heat pump water heaters and the heat pump water heater rebate. Rebates are not part of the running cost, so check them separately. If you are weighing a heat pump for space heating too, the combined heat pump and heat pump water heater rebate explains when the two systems are rebated together, and a heat pump running cost calculator covers the heating side.
How the numbers are worked out
- Hot water used: people x litres per person per day x 365. The starting value is 75 litres per person per day, the Natural Resources Canada average for Canadians at home.
- Energy the water needs: litres x 4.186 kJ per litre per degree x the temperature rise. The tool assumes cold water at 10 C and a tank setpoint of 60 C, a 50 degree rise. Both are assumptions.
- Energy you buy: the energy the water needs divided by the unit's Uniform Energy Factor (UEF). Starting UEF values are the ENERGY STAR minimums of 3.30 for an integrated heat pump water heater and 0.95 for a gas tankless unit, and assumed typical values of 0.92 for an electric tank and 0.65 for a standard gas tank. You can change all four.
- Gas price: $12.601 per gigajoule, the FortisBC Mainland and Vancouver Island residential variable charges effective July 1, 2026 (delivery $8.469, storage and transport $2.472, cost of gas $1.660). The daily basic charge is left out because it applies whatever you heat water with.
- Electricity price: you enter it. The starting value of 12 cents per kWh is a placeholder between BC Hydro's published Step 1 and Step 2 prices, which BC Hydro has said it plans to replace with a single blended rate; use the price on your bill.
What this tool does not cover
This is a planning estimate. It does not include equipment and installation cost, rebates, the daily gas and electricity basic charges, or the electrical and venting work some changes need. UEF comes from a standard test; real use differs, and a heat pump water heater in a cold or small room gets less out of each kilowatt-hour than the rated figure. Gas and electricity prices change, so re-check both rate pages before you decide. Changing the type or fuel of a water heater can need a gas, plumbing or electrical permit; see our gas permit checker.
Frequently asked questions
Is a heat pump water heater cheaper to run than gas?
It depends on the two prices you enter. Heat pump units use far less electricity than a standard electric tank, but gas is often a low-cost fuel per unit of energy. Enter your own rates to see which wins for your household.
What electricity price should I use?
The cents per kWh on your BC Hydro bill. BC Hydro has said it plans to move from two price steps to a single blended rate, so check which prices your bill uses.
Why is the gas price left without the basic charge?
The daily basic charge is paid whether you heat water with gas or not, as long as the home keeps a gas connection. Removing gas entirely would also remove it; that is a larger comparison than this tool makes.
Do the results include rebates?
No. Running cost and rebates are separate questions. Our heat pump water heater rebate guide lists current amounts and eligibility.
How accurate is the result?
It is an estimate built from published averages and assumptions you can see and change. Your own hot water use is the biggest unknown.
Sources
Last verified October 9, 2026. Codes, rebates and permit rules change; confirm with your plumber, Technical Safety BC or your municipality before you rely on a result.