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New report predicts Americans will soon favor electric alternative to gas-powered home tech: 'These … sales trends are a big deal'

"Likely moving away."

"Likely moving away."

Photo Credit: iStock

Gas water heaters may soon be a thing of the past, as electric water heaters have reached an all-time high in sales among consumers.

As PHCPPros detailed, 2024 marked the highest total sales number for electric storage water heaters. According to AHRI data, sales increased by 3%, while gas water heater sales numbers hit their lowest level in 12 years.

"These water heater sales trends are a big deal because they show how the second biggest energy use in the home is likely moving away from fossil fuel combustion and toward electric water heating solutions," PHCPPros said.

Heat pump water heaters are two to three times more efficient than traditional units. As PHCPPros suggested, they could be the most dominant domestic water heating technology in the U.S. at the end of the decade.

Investing in the planet-friendly upgrade from companies like Mitsubishi can save homeowners hundreds of dollars a year. Homeowners may even be eligible for a 30% federal tax credit on installation, but they should act soon, as the credit is set to expire at the end of 2025.

Gas appliances used for heat and hot water can pose a health risk, per Yale Climate Connections. Research has shown that the hazardous air pollutants released into the air are linked to asthma, heart disease, and other health issues.

Gas water heaters in America also leak around 91,000 tons of methane per year, according to Stanford University. Going electric can help lower levels of planet-overheating pollution. Mitsubishi has a wide variety of efficient water heaters available for customers ready to upgrade.

Per PHCPPros, states on the West Coast have heavily encouraged electrification. In fact, building codes in Washington have led to the installation of electric water heaters in new construction spiking by 46% from 2015 to 2018. In California, regulators in the Bay Area announced a gas water heater ban that will begin in 2027.

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Home electrification, including solar panels and heat pump installation, can bring down the cost of energy significantly. EnergySage provides a free service that makes it easy to compare quotes from solar panel installers and save customers up to $10,000.

For those on a budget, Palmetto's LightReach solar panel leasing program will install panels for no money down.

Additionally, homeowners who choose to upgrade from an HVAC to a heat pump save an average of nearly $400 a year on energy costs. Mitsubishi is a great resource to help customers find an affordable heat pump for their home.

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